Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) today reported financial results for the quarter ended June 30, 2021. The Company reported second quarter net sales of $2.027 billion, an increase of 65.3% over the prior year period, and an increase of 60.7% on a constant currency basis. Second quarter 2021 net sales increased 1.9% when compared to the pre-pandemic second quarter 2019, and were flat on a constant currency basis. Net earnings for the second quarter of 2021 were $141.9 million, or $400.5 million on an adjusted basis.
Diluted earnings per share were $0.67 for the second quarter. Adjusted diluted earnings per share were $1.90 for the second quarter.
“Our performance in the second quarter improved meaningfully from the first quarter 2021 across all regions and product categories as recovery from the global pandemic continued to take hold. While we anticipate some ongoing COVID-19 pressure, we expect continued improvement in procedure volume recovery through the second half of 2021,” said Bryan Hanson, Chairman, President and CEO of Zimmer Biomet. “Against this backdrop, Zimmer Biomet has continued to execute, investing in our business, expanding our portfolio and developing and launching innovative products designed to improve mobility and health. This execution enables ZB to build and deliver value for our customers and shareholders and to move our mission forward for the patients we ultimately serve.”
Please see the attached schedules accompanying this press release for additional details on performance in the quarter, including sales by Zimmer Biomet’s three geographies and five product categories.
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1 Reconciliations of these measures to the corresponding U.S. generally accepted accounting principles measures are included in this press release.
Recent Highlights
Aligned with the ongoing transformation of Zimmer Biomet’s business, key recent highlights include:
- Publication of the Zimmer Biomet Sustainability Report, aligned with Sustainability Accounting Standards Board (SASB) standards.
- Receipt of key awards for Zimmer Biomet’s portfolio including the ROSA Knee system for Best Technology Solution in Orthopedics by the Medtech Breakthrough Awards and Orthopaedic Product Innovation of the Year by the Healthcare Asia Medtech Awards. The TetherTM Vertebral Body Tethering System, a first-in-class treatment for children with scoliosis, was also Silver Winner in the 2021 Edison Best New Product Awards in the Advanced Surgical Instruments category.
- Key additions to the Zimmer Biomet Leadership Team, including the appointment of Wilfred van Zuilen as President of Europe, Middle East and Africa (EMEA) and Nitin Goyal, M.D. to the newly created role of Chief Science, Technology and Innovation Officer.
Geographic and Product Category Sales
The following sales tables provide results by geography and product category for the three and six-month periods ended June 30, 2021, as well as the percentage change compared to the prior year period, on both a reported basis and a constant currency basis.
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NET SALES – THREE MONTHS ENDED JUNE 30, 2021 |
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|
(in millions, unaudited) |
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|
Constant |
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|
Net |
Currency |
|||||||||
|
Sales |
% Change |
% Change |
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|
Geographic Results |
||||||||||
|
Americas |
$ |
1,239.6 |
69.0 |
% |
68.3 |
% |
||||
|
EMEA |
429.8 |
96.4 |
80.5 |
|||||||
|
Asia Pacific |
357.5 |
30.6 |
24.4 |
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|
Total |
$ |
2,026.9 |
65.3 |
% |
60.7 |
% |
||||
|
Product Categories |
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|
Knees |
||||||||||
|
Americas |
$ |
400.3 |
81.4 |
% |
80.6 |
% |
||||
|
EMEA |
148.6 |
127.2 |
109.6 |
|||||||
|
Asia Pacific |
116.7 |
31.2 |
23.8 |
|||||||
|
Total |
665.6 |
77.5 |
72.2 |
|||||||
|
Hips |
||||||||||
|
Americas |
258.1 |
51.3 |
50.4 |
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|
EMEA |
122.5 |
72.8 |
59.0 |
|||||||
|
Asia Pacific |
94.0 |
6.6 |
3.9 |
|||||||
|
Total |
474.6 |
44.0 |
39.9 |
|||||||
|
S.E.T. * |
462.1 |
57.9 |
53.0 |
|||||||
|
Dental & Spine |
263.5 |
73.1 |
69.4 |
|||||||
|
Other |
161.1 |
110.9 |
105.9 |
|||||||
|
Total |
$ |
2,026.9 |
65.3 |
% |
60.7 |
% |
||||
|
* Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic |
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|
NET SALES – SIX MONTHS ENDED JUNE 30, 2021 (in millions, unaudited) |
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|
Constant |
|||||||||
|
Net |
Currency |
||||||||
|
Sales |
% Change |
% Change |
|||||||
|
Geographic Results |
|||||||||
|
Americas |
$ |
2,354.6 |
28.3 |
% |
27.9 |
% |
|||
|
EMEA |
814.0 |
32.0 |
21.9 |
||||||
|
Asia Pacific |
705.7 |
26.4 |
19.9 |
||||||
|
Total |
$ |
3,874.3 |
28.7 |
% |
25.2 |
% |
|||
|
Product Categories |
|||||||||
|
Knees |
|||||||||
|
Americas |
$ |
759.1 |
26.8 |
% |
26.3 |
% |
|||
|
EMEA |
279.9 |
28.4 |
19.0 |
||||||
|
Asia Pacific |
240.9 |
29.0 |
21.0 |
||||||
|
Total |
1,279.9 |
27.5 |
23.7 |
||||||
|
Hips |
|||||||||
|
Americas |
493.3 |
22.4 |
21.9 |
||||||
|
EMEA |
230.2 |
26.3 |
17.1 |
||||||
|
Asia Pacific |
198.1 |
12.0 |
7.6 |
||||||
|
Total |
921.6 |
20.9 |
17.4 |
||||||
|
S.E.T. * |
879.7 |
30.6 |
27.1 |
||||||
|
Dental & Spine |
509.5 |
37.1 |
34.1 |
||||||
|
Other |
283.6 |
42.9 |
39.2 |
||||||
|
Total |
$ |
3,874.3 |
28.7 |
% |
25.2 |
% |
|||
|
* Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic |
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Financial Guidance
The Company is updating its full-year 2021 financial guidance to narrow its previous projected ranges for revenue growth and adjusted diluted EPS:
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Projected Year Ending December 31, 2021 |
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|
Previous |
Updated |
||
|
2021 reported revenue growth |
14.0% – 17.0% |
14.5% – 16.5% |
|
|
Foreign Currency Exchange Impact |
1.5% |
1.5% |
|
|
Adjusted Operating Profit Margin(1) |
26.5% – 27.5% |
26.5% – 27.0% |
|
|
Adjusted Tax Rate(1) |
16.0% – 16.5% |
16.0% – 16.5% |
|
|
Adjusted Diluted EPS(1) |
$7.60 – $8.00 |
$7.65 – $7.95 |
|
|
(1) |
These measures are non-GAAP financial measures for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts. See “Forward-Looking Non-GAAP Financial Measures.” |
Conference Call
The Company will conduct its second quarter investor conference call today, August 3, 2021, at 8:30 a.m. ET. The audio webcast can be accessed via Zimmer Biomet’s Investor Relations website at https://investor.zimmerbiomet.com. It will be archived for replay following the conference call.
