Zimmer Biomet (ZBH) 2024 Wells Fargo Healthcare Conference summary

Business performance and innovation

• Achieved consistent mid-single-digit revenue growth and double-digit EPS in recent years, reversing prior declines.

• Innovation is now a competitive advantage, with first-to-market launches in smart implants, robotics, diagnostics, and mixed reality.

• Plans to launch 50 new products over the next 30–36 months.

• U.S. performance remains inconsistent, but international and diversified business lines are strong.

• Company culture and commercial execution have improved, supporting sustained growth.

Operational challenges and ERP transition

• Transitioned to SAP ERP in July 2024, leading to unexpected disruptions, especially from August onward.

• Revenue impact estimated at around 1% of annual sales for 2024, with more than half of the impact in Q3.

• Issue mainly affects U.S. and Canada, particularly the SET and non-reconstructive businesses.

• Root cause identified; remediation underway with external consultants and leadership changes.

• Expect resolution by the end of Q4 2024, with some lost sales potentially recoverable in 2025.

Product pipeline and growth drivers

• Persona IQ knee implant adoption accelerating, with material impact expected in 2025.

• New hip products and technologies (HAMMR, ROSA Hip, OrthoGrid, HipInsight, Z1) launched to regain lost market share.

• SET segment has delivered strong mid-single-digit growth for three consecutive quarters, with some sub-segments growing even faster.

• Robotic shoulder application in limited launch, with full impact anticipated in 2025.

• Three new ROSA robotic modalities planned over the next 4–8 quarters, including software and hardware upgrades.