Zimmer Biomet’s Q2 Revenue Drops 38 Percent

Like most other orthopedic companies, the global pandemic is taking its toll on Zimmer Biomet Holdings Inc.’s finances.

For the second quarter, ended June 30, the company posted net sales of $1.226 billion, a decrease of 38.3 percent from the prior year period, and a decrease of 38 percent on a constant currency basis. Net loss for the second quarter was $206.6 million. Net earnings on an adjusted basis were $10.2 million.
 
Diluted loss per share was $1 for the second quarter. Adjusted diluted earnings per share were $0.05 for the second quarter, a decrease of 97.4 percent from the prior year period.

“While we are encouraged by our operational performance and the stronger than expected recovery of elective procedures in the second quarter, the impact of COVID-19 is still significant and remains very fluid,” said Bryan Hanson, president and CEO of Zimmer Biomet. “Even in this time of ongoing challenge and uncertainty, we continue to reshape and evolve Zimmer Biomet for greater value and are investing aggressively in our primary growth initiatives and innovative R&D programs to better position us for growth over the long term.  I am so proud of our global team for the support we continue to provide healthcare professionals and patients every day and our ongoing commitment to the ZB mission to better the lives of people around the world.”
 
Second quarter performance was negatively impacted by COVID-19, which reached a pandemic level in March and has resulted in a global decline in elective procedure volumes. The deepest decline in those procedures to-date was seen by the Company in April, with incremental improvement in May and June. 

Knee sales were off 46.8 percent, garnering $374.2 million for the quarter. Hip revenue fell 31.1 percent to $329.7 million, and S.E.T. (Sports Medicine, Extremities, and Trauma) proceeds decreased 29.2 percent to $252.6 million. Dental, Spine, and CMFT (Craniomaxillofacial and Thoracic) sales dropped 37.6 percent to $182.5 million, and “Other” revenue plummeted 44.5 percent to $87.1 million. 

Six month sales weren’t much better, as Knee sales fell 28.2 percent to $1 billion, Hips decreased 20.8 percent to $762.3 million, and S.E.T. proceeds sank 17.9 percent to $586.2 million. Dental, Spine, and CMFT sales dropped 25.1 percent to $434.2 percent, and “Other” revenue fell 28.2 percent to $223.2 million.