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ConMed reported 1Q20 orthopedic revenue of USD $99.3 million, -12.5% vs. 1Q19. Sales in the U.S. declined the most, falling -18.2% compared to the year prior, while international sales declined -8.7%. COVID-19 impacted the company’s China sales in January before spreading to other Asian markets. By March, ConMed saw disruptions in Europe and the Americas.
While company leaders declined to estimate the specific impact of COVID-19 going forward, they did share that April 2020 orthopedic sales project a -65% decline compared to last year. ConMed expects 2Q to be the market low point, with some elective procedures returning in May. Some Asian countries returned to growth in April after declining in the first quarter. Surgical restarts are anticipated to be localized and impacted by a variety of factors, like COVID caseloads, surgical staffing levels, PPE supplies, unemployment rates, local regulations and patient acceptance of the site of care.
- The company completed its orthopedic salesforce reorganization within the first quarter
- A global logistics management team has been created within the company to assure an uninterrupted supply of products to customers and from suppliers
- ConMed has eight employees who have tested positive for COVID-19, with four being cleared and the other four remaining in quarantine
- Overall absenteeism is under 1%. There are 92 high-risk employees on paid leave, and 30 who have requested unpaid leave.
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Sports Medicine | $99.3 | $113.4 | ($14.2) | (12.5%) |
Geographic Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $37.0 | $45.3 | ($8.2) | (18.2%) |
| OUS | $62.2 | $68.2 | ($5.9) | (8.7%) |
| EMEA | $25.9 | $30.4 | ($4.5) | (14.8%) |
| Asia Pacific | $20.5 | $22.7 | ($2.2) | (9.7%) |
| Rest of World | $15.8 | $15.0 | $0.8 | 5.1% |
| Total | $99.3 | $113.4 | ($14.2) | (12.5%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $214.0 | |
| Cost of Sales | $94.9 | 44.3% |
| Selling and Admin | $95.9 | 44.8% |
| R&D | $10.1 | 4.7% |
| Other | $7.2 | 3.4% |
| Net Earnings | $5.9 | 2.8% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
ConMed reported 1Q20 orthopedic revenue of USD $99.3 million, -12.5% vs. 1Q19. Sales in the U.S. declined the most, falling -18.2% compared to the year prior, while international sales declined -8.7%. COVID-19 impacted the company’s China sales in January before spreading to other Asian markets. By March, ConMed saw disruptions in Europe and...
ConMed reported 1Q20 orthopedic revenue of USD $99.3 million, -12.5% vs. 1Q19. Sales in the U.S. declined the most, falling -18.2% compared to the year prior, while international sales declined -8.7%. COVID-19 impacted the company’s China sales in January before spreading to other Asian markets. By March, ConMed saw disruptions in Europe and the Americas.
While company leaders declined to estimate the specific impact of COVID-19 going forward, they did share that April 2020 orthopedic sales project a -65% decline compared to last year. ConMed expects 2Q to be the market low point, with some elective procedures returning in May. Some Asian countries returned to growth in April after declining in the first quarter. Surgical restarts are anticipated to be localized and impacted by a variety of factors, like COVID caseloads, surgical staffing levels, PPE supplies, unemployment rates, local regulations and patient acceptance of the site of care.
- The company completed its orthopedic salesforce reorganization within the first quarter
- A global logistics management team has been created within the company to assure an uninterrupted supply of products to customers and from suppliers
- ConMed has eight employees who have tested positive for COVID-19, with four being cleared and the other four remaining in quarantine
- Overall absenteeism is under 1%. There are 92 high-risk employees on paid leave, and 30 who have requested unpaid leave.
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Sports Medicine | $99.3 | $113.4 | ($14.2) | (12.5%) |
Geographic Sales
| 1Q20 | 1Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $37.0 | $45.3 | ($8.2) | (18.2%) |
| OUS | $62.2 | $68.2 | ($5.9) | (8.7%) |
| EMEA | $25.9 | $30.4 | ($4.5) | (14.8%) |
| Asia Pacific | $20.5 | $22.7 | ($2.2) | (9.7%) |
| Rest of World | $15.8 | $15.0 | $0.8 | 5.1% |
| Total | $99.3 | $113.4 | ($14.2) | (12.5%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $214.0 | |
| Cost of Sales | $94.9 | 44.3% |
| Selling and Admin | $95.9 | 44.8% |
| R&D | $10.1 | 4.7% |
| Other | $7.2 | 3.4% |
| Net Earnings | $5.9 | 2.8% |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
