The Q1 2025 from ZBH highlights strong profit growth

Zimmer Biomet Holdings, Inc. achieved sales of $ 1.99 billion and 10% more profits ($ 292 million) compared to the previous year in the operating line for March 31, 2025, which was defeated by Wall Street and was a great way to start the year.

Room biomet grows by 2.3% in the first quarter

Ivan Tornos, President and CEO of Zimmer Biomet; And Suketu Upadhyay, Chief Financial Officer and Executive Vice President, have updated the company's performance in the first quarter in a recent call with analysts.

Tornos reported that sales increased by 2.3% of constant currency in the first quarter, with the US hips rising by almost 4%.

He added that they also expect cementless knees to be an important growth driver in the United States this year.

“We now have 25% penetration with cementless knees in the United States and expect the trend to be accelerated now after we will carry out a widespread training and sales employee training and have a sufficient offer for increasing penetration. In a similar way, the European start of the persona revision, the leading revision implant in the United States, should continue to be traction all year round.” he explained.

Tornos added that the ZBH team maintains the full year with organic growth growth of 3% to 5% for organic growth growth results, which excludes the contribution from the acquisition of Paragon 28.

“From April 21st [2025]Paragon 28 is now part of the rooms of the Biomet family rooms and we are very proud of this achievement. This successful integration of the acquisition was and will continue to be a top priority, ”he said.

Upadhyay took a closer look at the numbers of the first quarter. He said that net turnover was 1.99 billion US dollars, an increase of 1.1% on a reported basis and 2.3% without the effects of the foreign currency.

He said that both the transaction of Paragon 28 and the effects of global tariffs were taken into account in their leadership.

“When taking these changes into account, we now expect that in 2025 sales growth of 5.7% to 8.2%.

Customs were very important for analysts

Robbie Marcus von Jpmorgan was surprised by the lower effects of tariffs on EPS and asked for further details on reduction efforts.

Upadhyay said that the majority of your production and manufacture in the USA will take place, so that you have lower effects on you.

He added: “But we have already taken some early steps to mitigate the effects of tariffs. Some of the greats optimize our view of the country of origin and the clearing prices.”

“Secondly, we have made adjustments to our procurement through our double procurement and our redundant procurement where it makes sense. And then we have alleviated some of our discretionary editions in areas that do not really affect short -term or long -term.”

Josh Jennings with TB Cowen asked about the company's performance in the Ambulatory Surgery Center (ASC) against the hospital canal.

Tornos explained that about 20% of their sales in the United States now come from the ASC environment, which is a shift. Before Covid it was 2% to 4%.

He added: “We continue to believe that the number will grow. The data we translate show that between 40% and 60% of sales come from an ASC environment over the next five years.”

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