Orthofix Posts Q2 Results, Raises Full-Year Guidance

Orthofix has released financial results for the second quarter of its fiscal year 2024.
 
The Lewisville, Texas-based company posted $198.6 million of net sales in Q2, a 6% increase on both a reported and constant currency basis compared to the previous year’s Q2. Bone Growth Therapies experience a 12% revenue rise compared to Q2 2023, which marked six consecutive quarters with double-digit sales increases.
 
U.S. Spine Fixation proceeds also grew 12% because of distribution expansion and further penetration in existing accounts, according to Orthofix. Global Orthopedics sales rose 5% as reported, 6% on a constant currency basis.
 
Net loss was $33.4 million and earnings per share (EPS) was $0.88 on a reported basis, representing growth of 18% compared to the prior year’s period. Non-GAAP adjusted EBITDA was $16.6 million for Q2—8.4% of net sales—an EBITDA margin expansion of 310 basis points over the previous year’s period.
 
As a result, Orthofix raised its full-year guidance to a range of $795-800 million. This represents implied growth of 6.7-7.4% year-over-year on a constant currency basis and replaces the previous guidance of $790-795 million.
 
Non-GAAP adjusted EBITDA is expected to range from $64-69 million, an increase from the prior guidance range of $62-67 million.
 
“We delivered another strong quarter driven by successful execution of our key growth priorities,” said Massimo Calafiore, Orthofix’s president and CEO. “Highlights in the quarter included notable revenue growth across each of our business segments where our performance was led primarily by strength in our U.S. markets, including Bone Growth Therapies, which grew 12%, and further highlights the benefit of cross-selling in our integrated spine channel. In addition, we delivered growth of 12% in U.S. Spine fixation, more than twice the market rate. Based on continued positive momentum, the strength of our differentiated and expanding product portfolio, which continues to win share, and our confidence in sustainable growth trends, we are raising our full-year net sales and adjusted EBITDA guidance. We also are on track to achieve positive free cash flow for the second half of this year, much earlier than we originally anticipated.”

Q2 and recent highlights

• Won an FDA nod for the Fitbone transport and lengthening system
• Appointed Aviva McPherron as president of global operations and quality
• Named Julie Dewey as chief investor relations and communications officer
• Welcomed Max Reinhardt as president of its global spine business
• Hired Lucas Vitale as chief people and business operations officer
• Earned FDA clearance for the Rodeo telescopic nail