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Zimmer Biomet reported 1Q24 orthopedic sales of $1.8 billion, +3.2% compared to the first quarter of 2023. Adjusted for currency translation and selling days, the company grew 6% in the quarter.
The performance puts ZB firmly on the pathway to sustainable mid-single-digit growth, and underscores CEO Ivan Tornos’ declaration last year that the company is no longer in turnaround mode.
The company’s improved revenue performance is all about an intense focus on new products. The dollar value of Zimmer Biomet’s product pipeline doubled since 2018. More than 80% of these products reside in high-margin markets growing above 4%. Over the next 36 months, the company expects to launch 40 new products.
One of those products will be a direct anterior hip stem, an area of deficiency for Zimmer Biomet over the last five years. The stem puts ZB on par with its other large peers when combined with the HAMMR surgical impactor, ROSA Hip and mixed reality Hip Insights navigation.
The ROSA platform enjoyed a strong quarter for capital sales, something of a rarity for robotic systems in this era. However, company leadership expects this sales growth to mitigate over the year as volume-based placements become the preferred method of acquisition. About a third of ROSA systems go into the ASC setting.
“Not a week goes by that there’s not a new ASC opening and those ASCs want to acquire robotics,” said Zimmer Biomet CEO Ivan Tornos. “We saw more purchases in Q1 and believe this is driven by ASC dynamics. Capital continues to be strong across key markets, so definitely not a gating factor.”
The SET business experienced choppiness in the quarter. Sports medicine, upper extremities and CMFT products drove growth, but were offset by lower sales in trauma and orthobiologics. Despite the uneven performance, Zimmer Biomet expects the overall SET business to achieve mid-single-digit growth for the year.
The company reaffirmed its 2024 guidance of 5% to 6% constant currency growth.
Orthopedic Sales Data
Unless otherwise noted, all orthopedic sales data is provided in USD millions. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 1Q24 | 1Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $1,389.4 | $1,355.4 | $33.9 | 2.5% |
| Knees | $788.1 | $762.5 | $25.6 | 3.4% |
| Hips | $491.2 | $492.8 | ($1.6) | (0.3%) |
| Extremities | $110.1 | $100.1 | $9.9 | 9.9% |
| Trauma | $159.2 | $164.3 | ($5.1) | (3.1%) |
| Sports Medicine | $52.8 | $47.7 | $5.1 | 10.7% |
| Orthobiologics | $32.8 | $34.7 | ($1.9) | (5.4%) |
| Enabling Technology | $23.6 | $21.3 | $2.3 | 10.6% |
| Other | $231.5 | $207.6 | $23.8 | 11.5% |
| Total | $1,889.2 | $1,831.0 | $58.2 | 3.2% |
Orthopedic Sales by Geography
| Region | 1Q24 | 1Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $1,099.6 | $1,060.4 | $39.2 | 3.7% |
| OUS | $789.9 | $770.6 | $19.3 | 2.5% |
| EMEA | $462.1 | $443.1 | $19.0 | 4.3% |
| APAC | $327.8 | $327.5 | $0.3 | 0.1% |
| Total | $1,889.5 | $1,831.0 | $58.5 | 3.2% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $1,889.2 | |
| Cost of Sales | $512.3 | 27.1% |
| Selling and Admin | $736.2 | 39% |
| R & D | $107.9 | 5.7% |
| Other | $360.4 | 19.1% |
| Net Earnings | $172.4 | 9.1% |
Zimmer Biomet reported 1Q24 orthopedic sales of $1.8 billion, +3.2% compared to the first quarter of 2023. Adjusted for currency translation and selling days, the company grew 6% in the quarter.
The performance puts ZB firmly on the pathway to sustainable mid-single-digit growth, and underscores CEO Ivan Tornos’ declaration last year that...
Zimmer Biomet reported 1Q24 orthopedic sales of $1.8 billion, +3.2% compared to the first quarter of 2023. Adjusted for currency translation and selling days, the company grew 6% in the quarter.
The performance puts ZB firmly on the pathway to sustainable mid-single-digit growth, and underscores CEO Ivan Tornos’ declaration last year that the company is no longer in turnaround mode.
The company’s improved revenue performance is all about an intense focus on new products. The dollar value of Zimmer Biomet’s product pipeline doubled since 2018. More than 80% of these products reside in high-margin markets growing above 4%. Over the next 36 months, the company expects to launch 40 new products.
One of those products will be a direct anterior hip stem, an area of deficiency for Zimmer Biomet over the last five years. The stem puts ZB on par with its other large peers when combined with the HAMMR surgical impactor, ROSA Hip and mixed reality Hip Insights navigation.
The ROSA platform enjoyed a strong quarter for capital sales, something of a rarity for robotic systems in this era. However, company leadership expects this sales growth to mitigate over the year as volume-based placements become the preferred method of acquisition. About a third of ROSA systems go into the ASC setting.
“Not a week goes by that there’s not a new ASC opening and those ASCs want to acquire robotics,” said Zimmer Biomet CEO Ivan Tornos. “We saw more purchases in Q1 and believe this is driven by ASC dynamics. Capital continues to be strong across key markets, so definitely not a gating factor.”
The SET business experienced choppiness in the quarter. Sports medicine, upper extremities and CMFT products drove growth, but were offset by lower sales in trauma and orthobiologics. Despite the uneven performance, Zimmer Biomet expects the overall SET business to achieve mid-single-digit growth for the year.
The company reaffirmed its 2024 guidance of 5% to 6% constant currency growth.
Orthopedic Sales Data
Unless otherwise noted, all orthopedic sales data is provided in USD millions. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| Segment | 1Q24 | 1Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| Joint Replacement | $1,389.4 | $1,355.4 | $33.9 | 2.5% |
| Knees | $788.1 | $762.5 | $25.6 | 3.4% |
| Hips | $491.2 | $492.8 | ($1.6) | (0.3%) |
| Extremities | $110.1 | $100.1 | $9.9 | 9.9% |
| Trauma | $159.2 | $164.3 | ($5.1) | (3.1%) |
| Sports Medicine | $52.8 | $47.7 | $5.1 | 10.7% |
| Orthobiologics | $32.8 | $34.7 | ($1.9) | (5.4%) |
| Enabling Technology | $23.6 | $21.3 | $2.3 | 10.6% |
| Other | $231.5 | $207.6 | $23.8 | 11.5% |
| Total | $1,889.2 | $1,831.0 | $58.2 | 3.2% |
Orthopedic Sales by Geography
| Region | 1Q24 | 1Q23 | $ Chg | % Chg |
|---|---|---|---|---|
| US | $1,099.6 | $1,060.4 | $39.2 | 3.7% |
| OUS | $789.9 | $770.6 | $19.3 | 2.5% |
| EMEA | $462.1 | $443.1 | $19.0 | 4.3% |
| APAC | $327.8 | $327.5 | $0.3 | 0.1% |
| Total | $1,889.5 | $1,831.0 | $58.5 | 3.2% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $1,889.2 | |
| Cost of Sales | $512.3 | 27.1% |
| Selling and Admin | $736.2 | 39% |
| R & D | $107.9 | 5.7% |
| Other | $360.4 | 19.1% |
| Net Earnings | $172.4 | 9.1% |
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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.
