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Sales fall but ZimVie boosts guidance

WESTMINSTER — ZimVie Inc. (Nasdaq: ZIMV), a medical technology company that manufactures devices for spinal surgery and oral reconstruction that was spun off last year from Zimmer Biomet Holdings Inc. (NYSE and SIX: ZBH), saw its year-over-year sales dip in the second quarter, but the firm is projecting full-year 2023 revenues will beat previous guidance. 

The company posted net sales of $224.9 million in the second quarter of 2023, down 3.6% from the same period last year.

ZimVie’s net loss for the second quarter of 2023 was $23.4 million. That’s compared to a net loss of $8.7 million in the second quarter last year.

“The increase in net loss was primarily due to lower net sales, higher cost of products sold in the dental category from a change in mix to higher cost products due to our growing digital dentistry portfolio, increased general and administrative costs due to the ramp-up of corporate activities subsequent to the spin and more marketing and medical education events, higher restructuring costs, and a lower income tax benefit in the current quarter due to an increase in valuation allowances compared to the second quarter of 2022,” the company said. “These items were partially offset by lower cost of products sold in the spine category due to reduced inventory charges, lower selling, general, administrative and research and development costs due to our restructuring initiatives and cost containment measures.”

ZimVie’s stock ended trading Thursday down 6.23% at $13.24.

“I am pleased with our solid second quarter performance and remain optimistic about the underappreciated, significant opportunities in our portfolio and end markets,” said Vafa Jamali, president and CEO of ZimVie. “We continue to strengthen the foundation for long-term growth in both business segments.”

Looking ahead, ZimeVie is slightly increasing its full-year 2023 revenue guidance to between $850 million and $870 million.

Source: BizWest