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Zimmer Biomet reported 2Q23 orthopedic sales of $1,869.6 million, +4.9% compared to the second quarter of 2022. For the first half of the year, the company’s sales totaled $3,700.6 million, +7.4% compared to the prior year.
The company once again exceeded its internal expectations through improved execution around new product launches in key, high-growth markets. The strong results overcame supply challenges, an inflationary environment, a tough labor market and geopolitical instability.
On the positive side for the macro environment, the recovery of elective procedures and easing of hospital staffing pressure created a tailwind in the second quarter.
Zimmer Biomet’s knee franchise performed especially well, indicating that the company’s focus on innovation in that segment is paying off. The leadership team identified four pillars within the knee franchise: the combination of ROSA and Persona cementless, Persona Revision, the mix benefit of ZB legacy knee systems shifting to the Personal portfolio and the limited launch of PersonaIQ.
“Our innovation strategy is working,” said Zimmer Biomet CEO Bryan Hanson. “We now have four meaningful pillars inside of this business. All of which can drive pricing stability, mix benefit and competitive conversions.”
Zimmer Biomet is still contending with the HA reimbursement shift that impacts its Restorative Therapies business, though the company believes it has lapped that headwind. Acute supply problems impacted sports medicine and, to a lesser degree, trauma. However, Zimmer Biomet believes those segments will rebound in the second half of the year.
With the strong start, the company increased and narrowed its 2023 guidance range. Zimmer Biomet now expects constant currency growth between 7% and 7.5%, up from a previous range of 5% to 6%.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth on an as-reported basis.
Orthopedic Sales by Segment
| 2Q22 | 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,408.5 | $1,319.3 | $89.2 | 6.8% |
| Knees | $771.4 | $704.9 | $66.5 | 9.4% |
| Hips | $504.3 | $487.2 | $17.1 | 3.5% |
| Extremities | $132.8 | $127.2 | $5.6 | 4.4% |
| Trauma | $162.7 | $167.4 | ($4.7) | (2.8%) |
| Sports Medicine | $51.4 | $53.6 | ($2.2) | (4.1%) |
| Orthobiologics | $54.2 | $60.3 | ($6.0) | (10%) |
| Enabling Technology | $23.4 | $22.9 | $0.5 | 2.2% |
| Other | $169.4 | $158.3 | $11.1 | 7% |
| Total | $1,869.6 | $1,781.8 | $87.8 | 4.9% |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2,794.9 | $2,551.9 | $243.0 | 9.5% |
| Knees | $1,533.9 | $1,367.7 | $166.2 | 12.2% |
| Hips | $997.1 | $938.2 | $58.9 | 6.3% |
| Extremities | $263.9 | $246.0 | $17.9 | 7.3% |
| Trauma | $323.1 | $322.7 | $0.4 | 0.1% |
| Sports Medicine | $104.7 | $101.5 | $3.2 | 3.1% |
| Orthobiologics | $108.4 | $117.8 | ($9.4) | (8%) |
| Enabling Technology | $45.4 | $44.1 | $1.2 | 2.7% |
| Other | $324.2 | $307.0 | $17.2 | 5.6% |
| Total | $3,700.6 | $3,445.0 | $255.6 | 7.4% |
Orthopedic Sales by Geography
| 2Q22 | 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,068.9 | $1,017.6 | $51.3 | 5% |
| OUS | $800.7 | $764.2 | $36.5 | 4.8% |
| EMEA | $457.2 | $428.0 | $29.2 | 6.8% |
| Asia Pacific | $343.5 | $336.2 | $7.3 | 2.2% |
| Total | $1,869.6 | $1,781.8 | $87.8 | 4.9% |
| 1H22 | 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $2,129.3 | $1,958.8 | $170.5 | 8.7% |
| OUS | $1,571.3 | $1,486.2 | $85.1 | 5.7% |
| EMEA | $900.3 | $832.3 | $68.0 | 8.2% |
| Asia Pacific | $671.0 | $653.9 | $17.1 | 2.6% |
| Total | $3,700.6 | $3,445.0 | $255.6 | 7.4% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $1,869.6 | |
| Cost of Sales | $525.5 | 28.1% |
| Selling and Admin | $725.8 | 38.8% |
| R & D | $118.1 | 6.3% |
| Other | $290.6 | 15.5% |
| Net Earnings | $209.6 | 11.2% |
Zimmer Biomet reported 2Q23 orthopedic sales of $1,869.6 million, +4.9% compared to the second quarter of 2022. For the first half of the year, the company’s sales totaled $3,700.6 million, +7.4% compared to the prior year.
The company once again exceeded its internal expectations through improved execution around new product launches in...
Zimmer Biomet reported 2Q23 orthopedic sales of $1,869.6 million, +4.9% compared to the second quarter of 2022. For the first half of the year, the company’s sales totaled $3,700.6 million, +7.4% compared to the prior year.
The company once again exceeded its internal expectations through improved execution around new product launches in key, high-growth markets. The strong results overcame supply challenges, an inflationary environment, a tough labor market and geopolitical instability.
On the positive side for the macro environment, the recovery of elective procedures and easing of hospital staffing pressure created a tailwind in the second quarter.
Zimmer Biomet’s knee franchise performed especially well, indicating that the company’s focus on innovation in that segment is paying off. The leadership team identified four pillars within the knee franchise: the combination of ROSA and Persona cementless, Persona Revision, the mix benefit of ZB legacy knee systems shifting to the Personal portfolio and the limited launch of PersonaIQ.
“Our innovation strategy is working,” said Zimmer Biomet CEO Bryan Hanson. “We now have four meaningful pillars inside of this business. All of which can drive pricing stability, mix benefit and competitive conversions.”
Zimmer Biomet is still contending with the HA reimbursement shift that impacts its Restorative Therapies business, though the company believes it has lapped that headwind. Acute supply problems impacted sports medicine and, to a lesser degree, trauma. However, Zimmer Biomet believes those segments will rebound in the second half of the year.
With the strong start, the company increased and narrowed its 2023 guidance range. Zimmer Biomet now expects constant currency growth between 7% and 7.5%, up from a previous range of 5% to 6%.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. We estimate orthopedic sales and growth on an as-reported basis.
Orthopedic Sales by Segment
| 2Q22 | 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $1,408.5 | $1,319.3 | $89.2 | 6.8% |
| Knees | $771.4 | $704.9 | $66.5 | 9.4% |
| Hips | $504.3 | $487.2 | $17.1 | 3.5% |
| Extremities | $132.8 | $127.2 | $5.6 | 4.4% |
| Trauma | $162.7 | $167.4 | ($4.7) | (2.8%) |
| Sports Medicine | $51.4 | $53.6 | ($2.2) | (4.1%) |
| Orthobiologics | $54.2 | $60.3 | ($6.0) | (10%) |
| Enabling Technology | $23.4 | $22.9 | $0.5 | 2.2% |
| Other | $169.4 | $158.3 | $11.1 | 7% |
| Total | $1,869.6 | $1,781.8 | $87.8 | 4.9% |
| 1H23 | 1H22 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2,794.9 | $2,551.9 | $243.0 | 9.5% |
| Knees | $1,533.9 | $1,367.7 | $166.2 | 12.2% |
| Hips | $997.1 | $938.2 | $58.9 | 6.3% |
| Extremities | $263.9 | $246.0 | $17.9 | 7.3% |
| Trauma | $323.1 | $322.7 | $0.4 | 0.1% |
| Sports Medicine | $104.7 | $101.5 | $3.2 | 3.1% |
| Orthobiologics | $108.4 | $117.8 | ($9.4) | (8%) |
| Enabling Technology | $45.4 | $44.1 | $1.2 | 2.7% |
| Other | $324.2 | $307.0 | $17.2 | 5.6% |
| Total | $3,700.6 | $3,445.0 | $255.6 | 7.4% |
Orthopedic Sales by Geography
| 2Q22 | 2Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,068.9 | $1,017.6 | $51.3 | 5% |
| OUS | $800.7 | $764.2 | $36.5 | 4.8% |
| EMEA | $457.2 | $428.0 | $29.2 | 6.8% |
| Asia Pacific | $343.5 | $336.2 | $7.3 | 2.2% |
| Total | $1,869.6 | $1,781.8 | $87.8 | 4.9% |
| 1H22 | 1H21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $2,129.3 | $1,958.8 | $170.5 | 8.7% |
| OUS | $1,571.3 | $1,486.2 | $85.1 | 5.7% |
| EMEA | $900.3 | $832.3 | $68.0 | 8.2% |
| Asia Pacific | $671.0 | $653.9 | $17.1 | 2.6% |
| Total | $3,700.6 | $3,445.0 | $255.6 | 7.4% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $1,869.6 | |
| Cost of Sales | $525.5 | 28.1% |
| Selling and Admin | $725.8 | 38.8% |
| R & D | $118.1 | 6.3% |
| Other | $290.6 | 15.5% |
| Net Earnings | $209.6 | 11.2% |
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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.
