Zimmer Biomet Holdings, Inc. (NYSE:ZBH) Q4 2022 Earnings Call Transcript

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Josh Jennings: Thanks for that. Maybe just a follow-up. I think we, at least our team has been tracking share for large joints in the United States more effectively than internationally, but maybe you could just help us understand where you think you had success capturing share in knees and hips in Europe and Asia-Pac, and just where that stands and how you’re thinking about share capture in those markets, those international markets in ’23. Thanks for taking both questions.

Bryan Hanson: Yes, so you know, first of all, I think it’s really important – we never really pay a whole lot of attention to any individual quarter. Obviously this quarter was a pretty strong one for us globally and in the U.S., but we don’t try to over-index on that. We do an eight-quarter trend and we look at how we’re trending versus market, and I even try to stay away from specific competitors but just the overall market growth, looking at the largest players. I would say in that eight-quarter trend, as that continues to roll, we’re seeing good performance versus market in large joints, both hip and knee, probably more in knee than hip, but overall we’re feeling pretty good. You’ve got to go back to before Q2 2020. As you probably remember, we had 20 straight quarters of being below market in every quarter, so five years below market in large joints, so we definitely have seen a sea change in our ability to perform at or above market in large joints, which as you know is our biggest business.

That’s the way we think about it and we break it in a bunch of different ways – year over year, we look at it on a stacked basis, we look at it sequentially, but in all those areas when we look at that eight-quarter trend, we’re feeling good about where we are.

Josh Jennings: Thanks a lot, appreciate it.

Keri Mattox: Thanks Josh. Katie, can we go to the next question in the queue, please?

Operator: We’ll go next to Robbie Marcus with JP Morgan.

Robbie Marcus: Oh, great. Congrats on a good quarter. Thanks for taking the questions. Maybe to start, in the script you talked about improving supply moving throughout the year, but you also talked about it as benefiting fourth quarter sales. What are the products that are supply limited right now, and how should we think about the potential benefit to sales from improving supply?

Bryan Hanson: Yes, so maybe I’ll start off on a broad-based basis, because there’s really two factors that you talked about, Suke, in being able to drive performance in the fourth quarter. One would be supply challenges alleviating, but also the innovation building, because those are almost two separate things, so we’ll make sure that we talk about both of those, and Ivan, maybe talk about some of the innovation. For us when we think about the supply challenges, it really comes down to material shortages that we’re seeing, that we think are going to get better as we move in through the year, labor shortages that we think are going to get better as we move in through the year, and then sterilization capacity, which everybody is dealing with right now, that I do believe is going to catch up at some point.

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