Zimmer Biomet Reports 9.7 Percent Decrease in Net Sales

Zimmer Biomet Holdings Inc. today reported financial results for the quarter ended March 31, 2020. First quarter performance was negatively impacted by COVID-19, which reached a pandemic level in March and resulted in a significant and sudden global decline in elective procedure volumes. 
 
First quarter net sales were $1.784 billion, a decrease of 9.7% from the prior year period, and a decrease of 8.9% on a constant currency basis. Operating cash flow for the first quarter was $451 million and free cash flow was $325 million.
 
“While our full first quarter results have been impacted by the global spread of COVID-19 and the deferral of elective procedures, our operational performance prior to the COVID-19 disruption was trending ahead of our expectations,” said Bryan Hanson, president and CEO of Zimmer Biomet. “Over the past two years, we have made significant strides in reshaping and evolving Zimmer Biomet. This progress has better positioned us to address the COVID-19 challenge. We have an innovative and mobilized team, operational scale and increased financial flexibility – all of which we are using to support healthcare professionals and patients.”
 
Zimmer Biomet expects the decline in elective procedure volumes observed in the final weeks of the first quarter to continue to have a significant negative impact in the second quarter of 2020. Given the uncertainty around the scope and duration of COVID-19 and its ongoing impact on the deferral of elective procedures, the company is not providing full-year financial guidance.