Zimmer Biomet Holdings, Inc. reported a net sales increase of 3.8% for the fiscal year ending December 31, 2024, reaching $7.68 billion compared to $7.39 billion in 2023. The growth was attributed to market expansion, new product introductions, and effective commercial execution, although it faced challenges from the implementation of a new enterprise resource planning (ERP) system, which disrupted order fulfillment. The company’s net earnings for 2024 were $903.8 million, a decrease from $1.02 billion in 2023, primarily due to higher restructuring charges and increased intangible asset amortization.
In terms of operational developments, Zimmer Biomet's U.S. sales rose to $4.44 billion, a 3.5% increase from the previous year, while international sales grew by 4.3% to $3.24 billion. The company’s product categories saw varied performance, with knee product sales increasing by 4.4% to $3.17 billion, while hip sales rose by 1.6% to $1.99 billion. The S.E.T. (Sports Medicine, Extremities, Trauma, Craniomaxillofacial, and Thoracic) category experienced a 6.5% increase, driven by strong demand in specific segments.
Strategically, Zimmer Biomet has been active in acquisitions, completing several in 2024, including a third-party orthopedics distributor and a medical device company focused on sports medicine. The total initial consideration for these acquisitions was approximately $294.5 million, with additional contingent payments based on future milestones. The company also announced plans to acquire Paragon 28, Inc. for about $1.2 billion, which is expected to enhance its market share in the foot and ankle segment.
The company’s workforce as of December 31, 2024, comprised approximately 17,000 employees, with around 2,000 dedicated to research and development. Zimmer Biomet continues to focus on innovation, with significant investments in R&D aimed at developing new surgical techniques and technologies, including artificial intelligence applications. The company anticipates revenue growth of 1.0% to 3.5% in 2025, driven by market growth and new product launches, although it expects foreign currency fluctuations to negatively impact sales by approximately 1.5% to 2.0%.
Overall, Zimmer Biomet's financial performance reflects a combination of growth in sales and strategic acquisitions, tempered by operational challenges and restructuring costs. The company remains focused on enhancing its product offerings and expanding its market presence while navigating the complexities of the global healthcare landscape.
About ZIMMER BIOMET HOLDINGS, INC.
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