Charles Sternberg, Associate Editor03.03.23
ZimVie Inc., a global life sciences company, has reported financial results for the fourth quarter and full year ended December 31, 2022.
“Our team has been diligently focused on accelerating independence from our prior parent, and despite a difficult macroenvironment, we launched several innovative products and drove significant operational progress in our first year as a company. We remain focused on innovating around our core platforms and driving adoption of our clinically differentiated solutions,” said Vafa Jamali, President and Chief Executive Officer of ZimVie.
Third party dental segment net sales of $115.8 million decreased by $9.6 million, or 7.6% on a reported basis and 2.9% on a constant currency basis, driven by a general slowdown of customer purchases due to macroeconomic pressures and in anticipation of volume-based procurement (VBP) in China. Third party spine segment net sales of $112.3 million decreased by $22.9 million, or 16.9% on a reported basis and 14.8% in constant currency, driven by the exit of a number of unprofitable markets in late 2021, the discontinuation of certain products and brands, a slowdown of customer purchases in China in anticipation of VBP, operational disruptions resulting from an ERP implementation, other IT systems projects, and continued competitive pressures in the spine market. Both segments were unfavorably impacted by one less selling day in the fourth quarter of 2022.
Third party dental segment net sales of $459.7 million decreased by $8.8 million, or 1.9% on a reported basis but increased 2.6% on a constant currency basis. Third party spine segment net sales of $449.8 million decreased by $90.5 million, or 16.8% on a reported basis and 14.9% on a constant currency basis, driven by the exit of a number of unprofitable markets in late 2021, the discontinuation of certain products and brands, the impact of the third party net sales retained by Zimmer Biomet Holdings Inc. until it completed its separation activities in certain markets at the end of the third quarter of 2022, distributor bulk orders in the first quarter of 2021 that did not recur, the surge in COVID-19 cases in the first half of 2022 related to the Omicron variant, a slowdown of customer purchases in China in anticipation of VBP, operational disruptions resulting from an ERP implementation and other IT systems projects, continued competitive pressures in the spine market and changes in foreign currency exchange rates.
“Our team has been diligently focused on accelerating independence from our prior parent, and despite a difficult macroenvironment, we launched several innovative products and drove significant operational progress in our first year as a company. We remain focused on innovating around our core platforms and driving adoption of our clinically differentiated solutions,” said Vafa Jamali, President and Chief Executive Officer of ZimVie.
Fourth Quarter 2022 Financial Results
Third party net sales for the fourth quarter of 2022 were $228.2 million, a decrease of 12.4% on a reported basis and 9.1% on a constant currency basis, versus the fourth quarter of 2021.Third party dental segment net sales of $115.8 million decreased by $9.6 million, or 7.6% on a reported basis and 2.9% on a constant currency basis, driven by a general slowdown of customer purchases due to macroeconomic pressures and in anticipation of volume-based procurement (VBP) in China. Third party spine segment net sales of $112.3 million decreased by $22.9 million, or 16.9% on a reported basis and 14.8% in constant currency, driven by the exit of a number of unprofitable markets in late 2021, the discontinuation of certain products and brands, a slowdown of customer purchases in China in anticipation of VBP, operational disruptions resulting from an ERP implementation, other IT systems projects, and continued competitive pressures in the spine market. Both segments were unfavorably impacted by one less selling day in the fourth quarter of 2022.
Full Year 2022 Financial Results
Third party net sales for the full year 2022 were $909.5 million, a decrease of 9.8% on a reported basis and 6.8% on a constant currency basis, versus the full year 2021.Third party dental segment net sales of $459.7 million decreased by $8.8 million, or 1.9% on a reported basis but increased 2.6% on a constant currency basis. Third party spine segment net sales of $449.8 million decreased by $90.5 million, or 16.8% on a reported basis and 14.9% on a constant currency basis, driven by the exit of a number of unprofitable markets in late 2021, the discontinuation of certain products and brands, the impact of the third party net sales retained by Zimmer Biomet Holdings Inc. until it completed its separation activities in certain markets at the end of the third quarter of 2022, distributor bulk orders in the first quarter of 2021 that did not recur, the surge in COVID-19 cases in the first half of 2022 related to the Omicron variant, a slowdown of customer purchases in China in anticipation of VBP, operational disruptions resulting from an ERP implementation and other IT systems projects, continued competitive pressures in the spine market and changes in foreign currency exchange rates.