Orthofix Medical Reports 6% Sales Increase

By Bobby Samwell • Tuesday, August 06 08:08 • Permanent Link

Orthofix Medical Inc. has recently released its 10-Q report, providing a detailed view of its financial condition and results of operations. The company operates as a spine and orthopedics company, with two segments: Global Spine and Global Orthopedics. The Global Spine segment manufactures and distributes bone growth stimulator devices, motion preservation and fixation implant products, and navigation technologies. The Global Orthopedics segment offers products for limb reconstruction and deformity correction.

In the second quarter of 2024, Orthofix Medical reported net sales of $198.6 million, marking a 6% increase compared to the same period in 2023. Notably, the Bone Growth Therapies segment saw a net sales growth of 12%, while U.S. Spine Fixation net sales grew by 12%, and Global Orthopedics net sales increased by 5%. The company also reported a significant improvement in cash usage, paving the way for earlier than expected positive free cash flow for the second half of 2024.

In terms of operations, the company's gross profit for the second quarter of 2024 was $134.7 million, a 12.7% increase from the same period in 2023. Sales and marketing expenses amounted to $100.2 million, showing a 1% increase from the previous year, while general and administrative expenses decreased by 0.5%. Research and development expenses also decreased by 7.1% in the second quarter of 2024.

The Global Spine segment reported net sales of $168.0 million in the second quarter of 2024, representing a 6.4% increase from the same period in 2023. The Bone Growth Therapies net sales increased by 12.3%, driven by increased order volumes and continued growth of specific products. The Spinal Implants, Biologics, and Enabling Technologies net sales increased by 3.4%, primarily due to growth in various product franchises.

In the Global Orthopedics segment, net sales amounted to $30.6 million, reflecting a 5.3% increase from the second quarter of 2023. The growth was attributed to both U.S. and international markets, driven by recent product launches and commercial execution.

Following these announcements, the company's shares moved -4.3%, and are now trading at a price of $14.59. For the full picture, make sure to review Orthofix Medical's 10-Q report.

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