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Orthofix reported 1Q22 orthopedic sales of $106.4 million, +0.8% vs. 1Q21. The company experienced a significant slowdown in procedure volume due to COVID restrictions and hospital staffing shortages, but March brought a strong recovery. A low-single-digit decline in complex spine procedures in the first quarter slowed growth, but was partially offset by international distributor stocking orders.
Strategically, Orthofix is focusing on new product innovation and bolstering its commercial channel. According to CEO Jon Serbousek, portfolio investments will be focused on enabling technologies, alternative surgical site development and single-use sterile pack product technologies to drive customer value.
The company expects supply chain volatility to persist through 2023 and leveraged its balance sheet to purchase a year’s worth of key supplies. Orthofix CFO Doug Rice said, “We have taken the step of purchasing raw materials, including items such as titanium and semiconductor chips to ensure a year’s worth of supply. We believe this is an effective use of our strong balance sheet and is a prudent step that will ensure that we meet customer demand.”
For the full-year 2022, Orthofix expects mid-single-digit growth with orthopedic sales in the range of $475 million to $490 million. The guidance assumes a modest COVID overhang in the second quarter and revenue acceleration in the second half of the year partially offset by continuing staffing shortages.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $26.6 | $25.7 | $0.9 | 3.6% |
| Trauma | $23.8 | $23.3 | $0.5 | 2.2% |
| Orthobiologics | $14.1 | $13.7 | $0.4 | 2.9% |
| Other (Bone Growth Therapies) | $41.9 | $42.9 | ($1.0) | (2.3%) |
| Total | $106.4 | $105.6 | $0.8 | 0.8% |
Orthopedic Sales by Geography
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $82.4 | $83.3 | ($1.0) | (1.1%) |
| OUS | $24.0 | $22.2 | $1.8 | 8% |
| EMEA | $12.8 | $11.9 | $0.9 | 7.2% |
| APAC | $9.3 | $8.5 | $0.8 | 9.7% |
| ROW | $2.0 | $1.9 | $0.1 | 5.4% |
| Total | $106.4 | $105.6 | $0.8 | 0.8% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $106.4 | |
| Cost of Sales | $28.3 | 26.6% |
| General and Admin | $54.1 | 50.9% |
| Selling and Marketing | $19.3 | 18.2% |
| R & D | $11.2 | 10.5% |
| Other | ($2.1) | 2% |
| Net Earnings | ($4.5) | (4.2%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Orthofix reported 1Q22 orthopedic sales of $106.4 million, +0.8% vs. 1Q21. The company experienced a significant slowdown in procedure volume due to COVID restrictions and hospital staffing shortages, but March brought a strong recovery. A low-single-digit decline in complex spine procedures in the first quarter slowed growth, but was...
Orthofix reported 1Q22 orthopedic sales of $106.4 million, +0.8% vs. 1Q21. The company experienced a significant slowdown in procedure volume due to COVID restrictions and hospital staffing shortages, but March brought a strong recovery. A low-single-digit decline in complex spine procedures in the first quarter slowed growth, but was partially offset by international distributor stocking orders.
Strategically, Orthofix is focusing on new product innovation and bolstering its commercial channel. According to CEO Jon Serbousek, portfolio investments will be focused on enabling technologies, alternative surgical site development and single-use sterile pack product technologies to drive customer value.
The company expects supply chain volatility to persist through 2023 and leveraged its balance sheet to purchase a year’s worth of key supplies. Orthofix CFO Doug Rice said, “We have taken the step of purchasing raw materials, including items such as titanium and semiconductor chips to ensure a year’s worth of supply. We believe this is an effective use of our strong balance sheet and is a prudent step that will ensure that we meet customer demand.”
For the full-year 2022, Orthofix expects mid-single-digit growth with orthopedic sales in the range of $475 million to $490 million. The guidance assumes a modest COVID overhang in the second quarter and revenue acceleration in the second half of the year partially offset by continuing staffing shortages.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Spine | $26.6 | $25.7 | $0.9 | 3.6% |
| Trauma | $23.8 | $23.3 | $0.5 | 2.2% |
| Orthobiologics | $14.1 | $13.7 | $0.4 | 2.9% |
| Other (Bone Growth Therapies) | $41.9 | $42.9 | ($1.0) | (2.3%) |
| Total | $106.4 | $105.6 | $0.8 | 0.8% |
Orthopedic Sales by Geography
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $82.4 | $83.3 | ($1.0) | (1.1%) |
| OUS | $24.0 | $22.2 | $1.8 | 8% |
| EMEA | $12.8 | $11.9 | $0.9 | 7.2% |
| APAC | $9.3 | $8.5 | $0.8 | 9.7% |
| ROW | $2.0 | $1.9 | $0.1 | 5.4% |
| Total | $106.4 | $105.6 | $0.8 | 0.8% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $106.4 | |
| Cost of Sales | $28.3 | 26.6% |
| General and Admin | $54.1 | 50.9% |
| Selling and Marketing | $19.3 | 18.2% |
| R & D | $11.2 | 10.5% |
| Other | ($2.1) | 2% |
| Net Earnings | ($4.5) | (4.2%) |
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.
