– Fourth quarter net sales of $2.038 billion decreased 2.3% and 0.8% on a constant currency[1] basis
– Fourth quarter diluted loss per share was $0.40; adjusted[1] diluted earnings per share were $1.95
– Full-year net sales of $7.836 billion increased 11.6% and 10.3% on a constant currency[1] basis
– Full-year diluted earnings per share were $1.91; adjusted[1] diluted earnings per share were $7.37
– Company provides full-year 2022 financial guidance for RemainCo Zimmer Biomet
WARSAW, Ind., Feb. 7, 2022 /PRNewswire/ — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) today reported financial results for the quarter and year ended December 31, 2021. The Company reported fourth quarter net sales of $2.038 billion, a decrease of 2.3% from the prior year period, and a decrease of 0.8% on a constant currency basis. Net sales for the full year were $7.836 billion, an increase of 11.6% over the prior year, and an increase of 10.3% on a constant currency basis. Net loss for the fourth quarter was $84.0 million, or net earnings of $409.2 million on an adjusted basis, and for the full-year, net earnings were $401.6 million, or $1,550.0 million on an adjusted basis.
Diluted loss per share was $0.40 for the fourth quarter, and adjusted diluted earnings per share were $1.95. Full-year diluted earnings per share were $1.91 and full-year adjusted diluted earnings per share were $7.37. Both net sales and earnings metrics were negatively impacted in the fourth quarter by China volume-based procurement (“VBP”) in our Knees, Hips and S.E.T. product categories due to a combination of variables in advance of VBP implementation. The negative impact was in line with expectations in the Knees and Hips segments, but was not anticipated in the S.E.T. product category. In S.E.T., the nationalization of the provincial Trauma products tender was announced January 24, 2022 by the Chinese government.
“As we expected, the ongoing COVID pandemic continued to pressure our business in Q4. The quarter was particularly impacted throughout December due to hospital staffing shortages and the Omicron variant surge worldwide,” said Bryan Hanson, Chairman, President and CEO of Zimmer Biomet. “I remain confident in our ZB strategy and incredibly proud of our ZB team. We continued to execute in the quarter and are focused on delivering on our mission and driving value for all stakeholders.”
| 1 Reconciliations of these measures to the corresponding U.S. generally accepted accounting principles measures are included in this press release. |
Planned ZimVie Spin Off Transaction
Zimmer Biomet previously announced its intent to spin off its Dental and Spine businesses into a standalone, publicly traded company, ZimVie. The transaction is expected to close on March 1, 2022 and additional details will be announced in a separate press release this morning.
ZimVie will host a virtual Investor Day today, February 7, 2022, from 11:00 a.m. to approximately 2:00 p.m. Eastern Time. The virtual event will feature presentations from ZimVie leaders outlining its Dental and Spine offerings, addressable market opportunity, financial outlook, business strategy and the broader organizations supporting these businesses. The event will feature a live Q&A panel following speaker presentations. A live and archived webcast of the event can be accessed via Zimmer Biomet’s Investor Relations website at https://investor.zimmerbiomet.com.
Geographic and Product Category Sales
Please see the attached schedules accompanying this press release for additional details on performance in the fourth quarter and full-year 2021, including sales by Zimmer Biomet’s three geographies and five product categories.
The following sales tables provide results by geography and product category for the three-month period and year ended December 31, 2021, as well as the percentage change compared to the prior year periods, on both a reported basis and a constant currency basis.
