Q4 2024 Zimmer Biomet Holdings Inc Earnings Call Transcript
Key Points
- Zimmer Biomet Holdings Inc (ZBH) reported nearly 5% constant currency sales growth in Q4 2024, marking the 12th consecutive quarter of mid-single-digit or better growth.
- The company successfully managed to meet its original 2024 financial guidance despite challenges, delivering $8 in adjusted earnings per share and $1.05 billion in free cash flow.
- Zimmer Biomet Holdings Inc (ZBH) plans to launch over 50 new products in the next 36 months, with several being new to the world, indicating a strong focus on innovation.
- The acquisition of Paragon 28 is expected to expand Zimmer Biomet Holdings Inc (ZBH)'s offerings in the foot and ankle space, enhancing its growth potential in a $5 billion market.
- Zimmer Biomet Holdings Inc (ZBH) has a strong focus on operational excellence and innovation, with plans to improve margins and reduce inventory needs, thereby increasing free cash flow generation.
- The company faced ERP implementation challenges in 2024, which impacted its operations and new product introductions.
- Zimmer Biomet Holdings Inc (ZBH) anticipates a significant FX headwind in 2025, which could impact reported revenue growth and earnings per share.
- The guidance for 2025 reflects a more conservative approach, with expected constant currency revenue growth of 3% to 5%, which is lower than the previous year's growth.
- The acquisition of Paragon 28 is expected to be dilutive to adjusted EPS by approximately 3% in 2025 and about 1% in 2026.
- Zimmer Biomet Holdings Inc (ZBH) faces challenges in maintaining consistent performance in the critical US market, necessitating improvements in its go-to-market strategy.
Good morning, ladies and gentlemen, and welcome to the Zimmer Biomet Biomet fourth quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded today, February 6, 2025. Following today's presentation, there will be a question and answer session.
At this time, all participants and journalists are in listen only mode. (Operator Instructions) I would now like to turn the conference over to David DeMartino, Senior Vice President, Investor Relations. Please go ahead.
Thank you, Operator, and good morning, everyone. Welcome to Zimmer Biomet Biomet's fourth quarter 2024 earnings conference call. Joining me on today's call are Iwan Tornos, our President and CEO, and Suky Upadhyay, our CFO and EVP, Finance, Operations and Supply Chain.
Before we get started, I'd like to remind you that our comments during this call will include forward-looking statements. Actual results may differ materially from those indicated by
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