Zimmer Biomet Outlines Strategy to Deliver Above Market Growth at 2024 Investor Day
Presents Path for Compelling and Durable Topline Growth, Improved Operational Profitability and Increased Free Cash Flow Generation
Details New Capital Allocation Priorities and Commitment to Strategic Diversification
Announces Strategic
Partnership with CBRE, the World's
"Over the last five years,
At today's event, Zimmer Biomet provided its long-range plan for 2024 through 2027, including delivering:
- Mid-single-digit percentage constant currency consolidated revenue1 compound annual growth rate (CAGR)
- Adjusted earnings per share1 (EPS) growth at least 1.5 times revenue growth
- Free Cash Flow1 growing at least 100 basis points faster than adjusted EPS
The Company also highlighted the drivers of
- Delivering on a new, compelling growth profile for driving above market revenue growth
- Diversifying into higher growth markets to accelerate revenue in higher growth areas and increase the Company's Weighted Average Market Growth Rate (WAMGR)
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Returning at least 65% of free cash flow to shareholders through dividends and share buybacks:
Zimmer Biomet's board of directors has approved a new stock repurchase authorization, granting the Company authority to repurchase up to$2 billion in common stock. Under the program, which is designed to return value toZimmer Biomet's shareholders, minimize dilution from stock issuances, and reduce share count over time, the Company may repurchase shares in the open market and enter into structured repurchase agreements with third parties.
- Leveraging financial flexibility and strong M&A firepower to continue to execute strategic acquisitions
Event Materials and Replay
To access the presentation materials and replay from today's 2024 Investor Day, visit the Company's investor relations website at https://investor.zimmerbiomet.com/.
About Zimmer Biomet
With 90+ years of trusted leadership and proven expertise,
For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X / Twitter at www.twitter.com/zimmerbiomet.
Forward-Looking Non-GAAP Financial Measures
This press release includes certain forward-looking financial measures that differ from financial measures calculated in accordance with
We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, we exclude the impact of certain charges related to initial compliance with the European Union Medical Device Regulation; restructuring and other cost reduction initiatives; acquisition, integration, divestiture and related; and certain legal and tax matters. We have not provided quantitative reconciliations of these forward-looking non-GAAP financial measures to the most directly comparable forward-looking GAAP financial measures because the excluded items are not available on a prospective basis without unreasonable efforts. For example, the timing of certain transactions is difficult to predict because management's plans may change. In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. It is probable that these forward-looking non-GAAP financial measures may be materially different from the corresponding GAAP financial measures.
These non-GAAP financial measures may not be comparable to similar measures reported by other companies and should be considered in addition to, and not as a substitute for, or superior to, other measures prepared in accordance with GAAP. Management uses non-GAAP financial measures internally to evaluate the performance of the business. Additionally, management believes these non-GAAP measures provide meaningful incremental information to investors to consider when evaluating the performance of the Company. Management believes these measures offer the ability to make period-to-period comparisons that are not impacted by certain items that can cause dramatic changes in reported income but that do not impact the fundamentals of our operations. The non-GAAP measures enable the evaluation of operating results and trend analysis by allowing a reader to better identify operating trends that may otherwise be masked or distorted by these types of items that are excluded from the non-GAAP measures. In addition, constant currency sales changes, adjusted operating profit, adjusted diluted earnings per share and free cash flow are used as performance metrics in our incentive compensation programs.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our growth plans, profitability and margin expansion, future products and solutions, including their effects and impacts, future opportunities, diversification plans, return of capital to shareholders, expectations regarding strategic alliances, and any statements about our forecasts, expectations, plans, intentions, strategies or prospects. All statements other than statements of historical or current fact are, or may be deemed to be, forward-looking statements. Such statements are based upon the current beliefs, expectations and assumptions of management and are subject to significant risks, uncertainties and changes in circumstances that could cause actual outcomes and results to differ materially from the forward-looking statements. These risks, uncertainties and changes in circumstances include, but are not limited to: competition; pricing pressures; dependence on new product development, technological advances and innovation; changes in customer demand for our products and services caused by demographic changes, obsolescence, development of different therapies or other factors; shifts in the product category or regional sales mix of our products and services; the effects of business disruptions, either alone or in combination with other risks on our business and operations; the risks and uncertainties related to our ability to successfully execute our restructuring plans; control of costs and expenses; our ability to attract, retain and develop the highly skilled employees, senior management, independent agents and distributors we need to support our business; the possibility that the anticipated synergies and other benefits from mergers and acquisitions will not be realized, or will not be realized within the expected time periods; the risks and uncertainties related to our ability to successfully integrate the operations, products, employees and distributors of acquired companies; the effect of the potential disruption of management's attention from ongoing business operations due to integration matters related to mergers and acquisitions; the effect of mergers and acquisitions on our relationships with customers, suppliers and lenders and on our operating results and businesses generally; the ability to form and implement alliances; dependence on a limited number of suppliers for key raw materials and other inputs and for outsourced activities; the risk of disruptions in the supply of materials and components used in manufacturing or sterilizing our products; breaches or failures of our information technology systems or products, including by cyberattack, unauthorized access or theft; challenges relating to changes in and compliance with governmental laws and regulations affecting our
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- This measure is a non-GAAP financial measure for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts. See "Forward-Looking Non-GAAP Financial Measures" above, which identifies the information that is unavailable without unreasonable efforts and provides additional information. It is probable that this forward-looking non-GAAP financial measure may be materially different from the corresponding GAAP financial measure.
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Investors |
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(445) 248-0577 |
(908) 591-6955 |
heather.zoumaslubeski@zimmerbiomet.com
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