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Mar 31, 2023
ZimVie Q1 2023 Earnings Report
ZimVie's financial performance for Q1 2023 was reported, with a decrease in net sales and a net loss, but progress in product portfolio evolution and cost reduction initiatives was highlighted.
Key Takeaways
ZimVie reported a decrease in third-party net sales by 4.1% to $225.1 million for Q1 2023. The company experienced a net loss of $30.0 million, or ($1.14) per diluted share. Adjusted diluted EPS was $0.25. The company is implementing restructuring activities to reduce costs and streamline operations.
Third party net sales reached $225.1 million, a 4.1% decrease year-over-year.
Net loss was ($30.0) million, with a net loss margin of (13.3%).
Diluted EPS was ($1.14), while adjusted diluted EPS was $0.25.
Adjusted EBITDA was $32.1 million, with an adjusted EBITDA margin of 14.3%.
ZimVie
ZimVie
Forward Guidance
ZimVie is updating its 2023 net sales and adjusted EPS guidance while reaffirming its adjusted EBITDA margin guidance.
Positive Outlook
- Net sales are projected to be between $835 million and $860 million.
- Adjusted EBITDA margin is expected to be between 13.5% and 14.0%.
- Adjusted EPS is projected to be between $0.40 and $0.60.
- Initiatives to improve operating margins and cash flow are underway.
- Financial flexibility to continue to prioritize investments in product offerings and technologies.
Challenges Ahead
- Forward-looking non-GAAP financial measures may be materially different from corresponding GAAP measures.
- Timing of certain transactions is difficult to predict due to potential changes in management plans.
- Revenue was down 4.1% compared to the same period last year.
- Net loss increased compared to the same period last year.
- Global restructuring program with a 5% reduction in global workforce.