Q2 2024 Zimmer Biomet Holdings Inc Earnings Call Transcript
Key Points
- Zimmer Biomet Holdings Inc (ZBH) reported a 5.6% growth on a constant currency basis for Q2 2024, marking the 10th consecutive quarter of mid-single digit or above growth.
- The company achieved $2.01 in adjusted earnings per share, representing a 10% growth year-over-year.
- Strong performance in the S.E.T. category, with high-single digit growth in key areas like CMFT, upper extremities, and sports.
- International business outperformed expectations, with significant growth in key markets across both recon and S.E.T. categories.
- Zimmer Biomet Holdings Inc (ZBH) has made significant strides in its hips portfolio, addressing previous market share losses with new product introductions and approvals.
- The US knee business experienced softness in Q2 2024, attributed to high volume surgeons being out of the territory, supply constraints, and tough year-over-year comparisons.
- Gross margin was slightly lower than expected, driven by higher manufacturing costs and an unfavorable mix with stronger international sales.
- Despite positive pricing trends in the first half of the year, the company expects pricing to be flat to slightly down for the full year due to non-recurring benefits in EMEA.
- The company faces ongoing challenges with inflationary pressures on raw materials and third-party manufacturing costs, impacting gross margins.
- Zimmer Biomet Holdings Inc (ZBH) had to pull its TPT application as it did not make economic sense, indicating potential setbacks in monetizing certain technologies.
Good morning, ladies and gentlemen. And welcome to the Zimmer Biomet second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded today, August 7, 2024. (Operator Instructions)
I would now like to turn the conference over to Zach Weiner, Director of Investor Relations. Please go ahead.
Thank you, operator. And good morning, everyone. Welcome to Zimmer Biomet's second-quarter 2024 earnings conference call. Joining me on today's call are Ivan Tornos, our President and CEO; and CFO and EVP, Finance, Operations, and Supply Chain, Suky Upadhyay.
Before we get started, I would like to remind you that our comments during this call will include forward-looking statements. Actual results may differ materially from those indicated by the forward-looking statements due to a variety of risks and uncertainties. Please note, we assume no obligation to update these forward-looking statements, even if actual results or future expectations
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