WILMINGTON, DE — Enovis™ Corporation (NYSE: ENOV) this week announced its financial results for the third quarter ended September 29, 2023.
Third Quarter 2023 Financial Results
Enovis’ third quarter net sales of $418 million grew 9% from the same quarter in 2022, including 6.2% organic sales per day growth. Third quarter results reflect continued stability in P&R, above market growth in Recon, and the impact of recent acquisitions. Sales in the Reconstructive segment grew 16%, with 10% organic growth, and the Prevention and Recovery segment grew 5%, with 4% organic growth.
Enovis also reported a third quarter net loss from continuing operations of $19 million and adjusted EBITDA of $65 million, or 15.7% of sales, an improvement of 80 basis points versus the comparable prior year quarter, which includes the temporary dilution of recent acquisitions.
The Company reported a third quarter 2023 net loss from continuing operations of $0.36 per share, and adjusted earnings per diluted share of $0.56.
“We are well positioned to achieve our 2023 goals of high-single digit growth and strong margin expansion,” said Matt Trerotola, Chief Executive Officer of Enovis. “We made a significant move to accelerate our growth and margin profile with the pending acquisition of LimaCorporate and are excited by our operational momentum and the strength of our R&D pipeline.”
Third Quarter 2023 Business Highlights
- Double-digit Reconstructive growth including +18% in US hip/knee
- Gross profit margin improved 200 basis points and adjusted gross profit margin improved 140 basis points from the same quarter in 2022
- Adjusted EBITDA margin improved 80 basis points year over year
- Strengthened and further globalized Reconstructive segment with the definitive agreement to acquire LimaCorporate S.p.A. (“Lima”) for an enterprise value of approximately €800 million
2023 Financial Outlook
Enovis updated its financial expectations for 2023. Revenue is expected to organically grow 7.4-7.6% from the prior year versus previous expectations of 7-7.5% growth, and adjusted EBITDA is forecasted to be $264-$270 million as compared with the previous outlook of $262-$270 million. The Company also updated its full-year adjusted earnings per diluted share guidance to $2.30-$2.40 from $2.22-$2.36.
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