Sector: Health Care | Focus: Health Care Equipment
HQ: Warsaw, Indiana
Financial Risks
Zimmer Biomet faces risks from competition, pricing pressures, new product development dependence, customer demand shifts, restructuring execution challenges, cost control, employee retention, integration of acquisitions, potential impairment of intangible assets, economic instability, political/social/economic conflicts, regulatory changes (FDA, EU MDR), litigation (product liability, tax disputes), substantial debt servicing, and changes in tax obligations. The company's new ERP system implementation has caused operational challenges, potentially impacting sales and profitability.
Financial Upside
Zimmer Biomet anticipates mid-single-digit revenue growth in 2024, driven by market growth, new product introductions, and commercial execution. Increased net sales, leverage from fixed operating expenses, and lower restructuring costs are expected to boost operating profit. Favorable tax settlements and lower R&D spending are also positive factors. Acquisitions are expected to improve margins and expand the product portfolio.
