Orthofix Releases Q1 Results; Narrows Full-Year Revenue Guidance

Orthofix has released the financial results for its first quarter 2024 (ended March 31).
 
The Lewisville, Texas-based company generated net sales of $188.6 million in the first quarter, an increase of 7.7% on a reported basis and 7.5% in constant currency over the prior year. Net loss was $36 million and earnings per share (EPS) was $0.95, demonstrating 44% improvement compared to the prior year’s period.
 
The company’s Q1 2024 non-GAAP adjusted EBITDA was $7.7 million, a 220-point basis expansion over the previous year period.
 
Orthofix’s Bone Growth Therapies business led the charge in Q1 with 10% growth to %52.5 million. This marks five consecutive quarters of double-digit revenue increases for the business. U.S. Spine Fixation proceeds jumped 16% due to distribution expansion and more penetration in existing accounts, according to the company.
 
Global Orthopedics sales rose 5% on a reported basis to 5%. Orthofix cited U.S. Orthopedic net sales growth of 23% as the chief reason.
 
As a result, Orthofix raised its full year 2024 revenue guidance to $790 million-$795 million, which implies 6-7% growth year over year. This was narrowed from the previous guidance of $785 million-$795 million. Previous non-GAAP adjusted EBITDA guidance held fast at a range of $62 million-$67 million.
 
“Orthofix executed well on a number of key priorities in the first quarter of the year and delivered notable growth in all of its U.S. businesses,” said Orthofix president and CEO Massimo Calafiore. “We saw strength in many areas of our broadening portfolio, including outsized performance in U.S. Spine Fixation, U.S. Orthopedics, and the Bone Growth Therapies fracture market, with growth of 16%, 23%, and 17%, respectively. I remain confident in the fundamentals of the Company and believe we are poised to continue driving value through profitable growth, increased operating leverage, and portfolio synergies. I look forward to sustaining the first quarter’s momentum through the remainder of 2024 and taking further advantage of the many opportunities for market share gain that lie within all of our core segments.”

Orthofix Q1 and recent highlights

• New president and CEO Massimo Calafiore, previously CEO of LimaCorporate, took office
• Julie Andrews hired as the company’s new CFO
• Began commercial partnership with MRIguidance to distribute BoneMRI imaging software