ZimVie Inc. (NASDAQ:ZIMV) Q4 2022 Earnings Call Transcript

Rich Heppenstall: Yeah. So do you want — so I’ll start and I’ll let Vafa add some color. So the dental business actually in Q4 year-over-year was basically flat. So there were a couple of impacts that we had in the fourth quarter as we mentioned just on the prepared remarks, one, being foreign currency exchange headwind and then the other one was an impact of China. And then of course Q4 had one less selling day. When you actually normalize for those items in Q4, our dental business was flat. And I think it was relatively flat US and OUS when you normalize those particular items. And we believe our dental business is still performing at/or perhaps even a little bit better than the market. And so if you look at some of our peers as they’ve announced, many of them are kind of performing at that same level.

So we continue to feel as though our dental business is really well-positioned. It has — the market acceptance so our new product has been really strong. We’ve got a global footprint direct sales force. And so as we look at 2023, we continue to think that dental is going to perform at/or a little bit better than market. I think there’s a little bit of a macro headwind that we’re seeing but that’s consistent across the space. And then we have a little bit of an FX headwind in China into 2023. But like I said, we should be performing better than the market.

Vafa Jamali: Further to that, Sarah, I think VBP is significant in China and we’ve purposely given ourselves enough room to make the right decision on how to approach that market whether you stay as is or you reconfigure your team to address a market that isn’t as impacted. But the price cuts were significant so we’ve given ourselves enough room to make the right choice on how to satisfy that market or not. So that remains a question for us. But I think it’s implied within our guidance that we’ll be looking at a different approach to China. The short of China I’d say, most OUS and US is pretty similar.

Operator: Thank you. And I’m showing no further questions at this time. I will now turn the call back over to Mr. Vafa Jamali for any closing remarks.

Vafa Jamali: Yes, thank you very much for your attention and we look forward to sharing better news in future quarters. So, thank you very much and I wish you a great rest of the day.

Operator: Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.