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Zimmer Biomet reports 2Q19 revenue of USD $1,769.4MM, -1.4% vs. 2Q18. Products like Persona and improved confidence in the supply chain helped Zimmer Biomet close the gap to market growth in the knee segment.
Quarterly Highlights
- The company increased the bottom end of its 2019 guidance, providing a revised range of flat to +0.5% revenue growth.
- Benefitted from improved U.S. knee performance, as well as strength in the APAC and EMEA regions before currency headwinds.
- While ROSA unit placements did incrementally contribute to knee revenue, much of the growth in the segment was due to increased volume and improved product mix.
- Leadership attributed positive knee performance to the salesforce’s increased confidence in the supply chain, with backorders being resolved in a day compared to the four days at the company’s low point.
- The underperforming spine segment was impacted by difficult quarterly comps. Leadership is evaluating salesforce cohesion and selection of distribution partners.
ROSA Updates
- ROSA knee remains in limited launch with overall unit placements “relatively small.”
- ROSA Spine development has been put on the “backburner” until early 2020 to assure that the ROSA Knee launch is executed well.
- The company is committing more resources to robotics R&D as well as commercial infrastructure.
- The company is excited about revenue annuities like disposables and service agreements through the ROSA platform.
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| Joint Replacement | $1,288.0 | $1,292.3 | -$4.3 | -0.3% |
| Knees | $703.5 | $703.0 | $0.5 | 0.1% |
| Hips | $479.4 | $486.9 | -$7.5 | -1.5% |
| Extremities | $105.1 | $102.4 | $2.7 | 2.6% |
| Spine | $107.6 | $118.7 | -$11.1 | -9.3% |
| Trauma | $147.4 | $144.9 | $2.5 | 1.7% |
| Sports Medicine | $34.7 | $34.1 | $0.7 | 1.9% |
| Orthobiologics | $70.8 | $73.6 | -$2.8 | -3.8% |
| Other * | $121.0 | $131.3 | -$10.3 | -7.8% |
| Total | $1,769.4 | $1,794.8 | -$25.4 | -1.4% |
| 1H19 | 1H18 | $ Chg | % Chg | |
| Joint Replacement | $2,570.2 | $2,604.2 | -$33.9 | -1.3% |
| Knees | $1,397.6 | $1,416.3 | -$18.7 | -1.3% |
| Hips | $963.6 | $978.9 | -$15.3 | -1.6% |
| Extremities | $209.0 | $209.0 | $0.1 | 0.0% |
| Spine | $213.2 | $229.2 | -$16.0 | -7.0% |
| Trauma | $293.2 | $290.9 | $2.2 | 0.8% |
| Sports Medicine | $69.0 | $67.6 | $1.4 | 2.1% |
| Orthobiologics | $141.2 | $145.6 | -$4.4 | -3.0% |
| Other | $242.1 | $257.2 | -$15.1 | -5.9% |
| Total | $3,528.8 | $3,594.6 | -$65.8 | -1.8% |
*CMF, Bone Healing, Forgings, Accelero
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| US | $1,063.4 | $1,069.7 | -$6.3 | -0.6% |
| Ex-US | $706.6 | $725.4 | -$18.7 | -2.6% |
| EMEA | $389.7 | $409.2 | -$19.5 | -4.8% |
| Asia Pacific | $299.2 | $298.2 | $1.0 | 0.3% |
| Other | $17.7 | $17.9 | -$0.3 | -1.4% |
| Total | $1,769.4 | $1,794.8 | -$25.4 | -1.4% |
Net Earnings Data
Net earnings, inclusive for all Zimmer Biomet revenue, is as follows.
| Amt | % of Sales | |
| Sales | $1,988.6 | |
| Cost of Sales | -$581.3 | 29.2% |
| Selling and Admin | -$840.3 | 42.3% |
| R & D | -$112.1 | 5.6% |
| Other | -$323.0 | 16.2% |
| Net Earnings | $131.9 | 6.6% |
Sources: Zimmer Biomet; ORTHOWORLD estimates.
Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.
Zimmer Biomet reports 2Q19 revenue of USD $1,769.4MM, -1.4% vs. 2Q18. Products like Persona and improved confidence in the supply chain helped Zimmer Biomet close the gap to market growth in the knee segment.
Quarterly Highlights
The company increased the bottom end of its 2019 guidance, providing a revised...
Zimmer Biomet reports 2Q19 revenue of USD $1,769.4MM, -1.4% vs. 2Q18. Products like Persona and improved confidence in the supply chain helped Zimmer Biomet close the gap to market growth in the knee segment.
Quarterly Highlights
- The company increased the bottom end of its 2019 guidance, providing a revised range of flat to +0.5% revenue growth.
- Benefitted from improved U.S. knee performance, as well as strength in the APAC and EMEA regions before currency headwinds.
- While ROSA unit placements did incrementally contribute to knee revenue, much of the growth in the segment was due to increased volume and improved product mix.
- Leadership attributed positive knee performance to the salesforce’s increased confidence in the supply chain, with backorders being resolved in a day compared to the four days at the company’s low point.
- The underperforming spine segment was impacted by difficult quarterly comps. Leadership is evaluating salesforce cohesion and selection of distribution partners.
ROSA Updates
- ROSA knee remains in limited launch with overall unit placements “relatively small.”
- ROSA Spine development has been put on the “backburner” until early 2020 to assure that the ROSA Knee launch is executed well.
- The company is committing more resources to robotics R&D as well as commercial infrastructure.
- The company is excited about revenue annuities like disposables and service agreements through the ROSA platform.
Performance by Segment
ORTHOWORLD estimates segment sales and growth on an as-reported basis, as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| Joint Replacement | $1,288.0 | $1,292.3 | -$4.3 | -0.3% |
| Knees | $703.5 | $703.0 | $0.5 | 0.1% |
| Hips | $479.4 | $486.9 | -$7.5 | -1.5% |
| Extremities | $105.1 | $102.4 | $2.7 | 2.6% |
| Spine | $107.6 | $118.7 | -$11.1 | -9.3% |
| Trauma | $147.4 | $144.9 | $2.5 | 1.7% |
| Sports Medicine | $34.7 | $34.1 | $0.7 | 1.9% |
| Orthobiologics | $70.8 | $73.6 | -$2.8 | -3.8% |
| Other * | $121.0 | $131.3 | -$10.3 | -7.8% |
| Total | $1,769.4 | $1,794.8 | -$25.4 | -1.4% |
| 1H19 | 1H18 | $ Chg | % Chg | |
| Joint Replacement | $2,570.2 | $2,604.2 | -$33.9 | -1.3% |
| Knees | $1,397.6 | $1,416.3 | -$18.7 | -1.3% |
| Hips | $963.6 | $978.9 | -$15.3 | -1.6% |
| Extremities | $209.0 | $209.0 | $0.1 | 0.0% |
| Spine | $213.2 | $229.2 | -$16.0 | -7.0% |
| Trauma | $293.2 | $290.9 | $2.2 | 0.8% |
| Sports Medicine | $69.0 | $67.6 | $1.4 | 2.1% |
| Orthobiologics | $141.2 | $145.6 | -$4.4 | -3.0% |
| Other | $242.1 | $257.2 | -$15.1 | -5.9% |
| Total | $3,528.8 | $3,594.6 | -$65.8 | -1.8% |
*CMF, Bone Healing, Forgings, Accelero
Sales by Geographic Region
ORTHOWORLD estimates geographic sales and growth as follows ($MM):
| 2Q19 | 2Q18 | $ Chg | % Chg | |
| US | $1,063.4 | $1,069.7 | -$6.3 | -0.6% |
| Ex-US | $706.6 | $725.4 | -$18.7 | -2.6% |
| EMEA | $389.7 | $409.2 | -$19.5 | -4.8% |
| Asia Pacific | $299.2 | $298.2 | $1.0 | 0.3% |
| Other | $17.7 | $17.9 | -$0.3 | -1.4% |
| Total | $1,769.4 | $1,794.8 | -$25.4 | -1.4% |
Net Earnings Data
Net earnings, inclusive for all Zimmer Biomet revenue, is as follows.
| Amt | % of Sales | |
| Sales | $1,988.6 | |
| Cost of Sales | -$581.3 | 29.2% |
| Selling and Admin | -$840.3 | 42.3% |
| R & D | -$112.1 | 5.6% |
| Other | -$323.0 | 16.2% |
| Net Earnings | $131.9 | 6.6% |
Sources: Zimmer Biomet; ORTHOWORLD estimates.
Mike Evers is ORTHOWORLD’s Market Analyst. 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.
