#United States #Paragon 28 #financial results #Zimmer Biomet #Warsaw, Indiana

Zimmer Biomet's Financial Results for 2024

Overview

Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) released impressive financial results for the fourth quarter and full year ending December 31, 2024. The company's net sales have seen a notable increase, with the fourth quarter reaching $2.023 billion, marking a 4.3% rise compared to the same period last year. Adjusted diluted earnings per share for the same quarter stood at $2.31. Overall, Zimmer Biomet's annual net sales for 2024 were reported at $7.679 billion, reflecting a 3.8% growth.

Quarterly and Annual Performance Highlights

The results from the fourth quarter show not only solid sales growth but also a strong operational execution. The company achieved the following notable figures for Q4:

• - Net earnings: $239.4 million
• - Diluted earnings per share: $1.20
• - Adjusted diluted EPS: $2.31

For the entire year, Zimmer Biomet reported:

• - Annual net earnings: $903.8 million
• - Diluted EPS: $4.43
• - Adjusted diluted EPS: $8.00

These positive results validate Zimmer Biomet’s commitment to achieving its financial guidance and reflect the significant contributions of its global teams. President and CEO Ivan Tornos expressed pride in the team's accomplishments and reaffirmed the company's strategic move towards diversification beyond traditional orthopedic segments.

Strategic Diversification Efforts

A major highlight is the announcement of a definitive agreement to acquire Paragon 28, Inc. (NYSE: FNA), a company dedicated to the foot and ankle orthopedic segment. This acquisition signals Zimmer Biomet's commitment to broaden its portfolio into higher-growth markets, particularly within the approximately $5 billion foot and ankle section. Tornos stated that upon completion of this acquisition, the S.E.T. (Sports Medicine, Extremities, Trauma) business is expected to surpass the company's hip business in size and growth rate.

Regulatory Approvals and Innovations

Additionally, Zimmer Biomet achieved critical regulatory milestones, including:

• - FDA Premarket Approval for the Oxford® Cementless Partial Knee, the only FDA-approved cementless partial knee implant in the U.S.
• - FDA 510(k) clearance for the OsseoFit™ Stemless Shoulder System, which aligns with the natural shoulder anatomy.
• - CE Mark Certification for the Persona® Revision Knee System, enhancing the availability of advanced tools for revision knee surgeries.

Community Engagement and Future Initiatives

In a strategic marketing initiative, legendary actor Arnold Schwarzenegger has joined as the Chief Movement Officer. In this role, he will work with Zimmer Biomet to promote mobility and joint health, encouraging individuals to incorporate movement into their daily lives. This partnership emphasizes the company’s holistic view of health and wellness.

Financial Guidance for 2025

Looking ahead, Zimmer Biomet has released its financial guidance for 2025, projecting a revenue increase between 1.0% to 3.5%, with adjusted diluted EPS anticipated to range from $8.15 to $8.35. The company aims to continue its momentum while navigating through macroeconomic pressures and industry changes.

Conclusion

Zimmer Biomet’s remarkable performance in 2024, alongside its strategic growth plans through acquisitions and innovative products, signals a positive trajectory for the company. With a focus on diversification and community engagement, Zimmer Biomet is strategically positioning itself to not only enhance shareholder value but also improve the quality of life for patients worldwide.