Zimmer Biomet releases business strategies during COVID-19 pandemic
Click Here to Manage Email Alerts
Zimmer Biomet Holdings Inc. provided information on important actions it is taking to address the COVID-19 pandemic, a preliminary estimated revenue growth range for the first-quarter 2020 and an update regarding its full-year 2020 financial guidance.
Impacted by the significant and sudden global decline in elective procedure volumes, Zimmer Biomet estimates revenue growth for the first-quarter 2020 to be approximately -9.5% to -10.5% on a reported basis and -8.5% to -9.5% on a constant currency basis when compared to first-quarter 2019, according to a company press release. The release noted Zimmer Biomet has scheduled to announce its final results for first-quarter 2020 on May 11.
With the decline in elective procedure volumes observed in the first quarter expected to continue to have a significant negative impact on the second quarter of 2020 and the ongoing uncertainty around the scope and duration of COVID-19, Zimmer Biomet noted it is unable to quantify the impact on its results of operations, financial condition and cash flows for 2020 and is withdrawing the full-year financial guidance it previously issued on Feb. 4, 2020. To contain costs and further support its liquidity profile, the release noted Zimmer Biomet is positioning the company to support health care systems, customers and patients now and as elective procedure return to normal volumes. The company is also taking steps to further reinforce business continuity in its manufacturing facilities and overall supply chain, modulating manufacturing output, proactively reducing certain variable costs and discretionary spending, and implementing compensation reduction for its leadership team and board of directors, according to the release.
Zimmer Biomet noted it is donating supplies of personal protective equipment to local hospitals and non-profit organizations, partnering with an industry coalition and using 3D-printing technology to produce critical components for ventilators and face shields for health care professionals, and providing monetary donations through the company’s philanthropic foundation to multiple non-profit organization in support of COVID-19 initiatives, according to the release.
“The coronavirus pandemic has had an unprecedented impact on global economic activity and we are responding by taking decisive actions designed to ensure the safety of our team members, strengthen our financial position and navigate this new environment,” Bryan Hanson, president and CEO of Zimmer Biomet, said in the release. “While we cannot predict the duration of this crisis, we remain confident in our team, our strategy and in the long-term underlying strength of the Zimmer Biomet portfolio and innovation pipeline.”
Reference:
https://investor.zimmerbiomet.com/news-and-events/news/2020/04-06-2020-210914865