CONMED's Q4 2024: Contradictions on Supply Chain, Growth Expectations, and Leadership Priorities

These are the key contradictions discussed in CONMED's latest 2024Q4 earnings call, specifically including: Orthopedics Supply Chain Issues and Expectations for Growth:



Sales Performance and Growth Forecast:
- CONMED reported total sales of $345.9 million for Q4 2024, representing a year-over-year increase of 5.8% as reported and 6% in constant currency.
- For the full year 2024, sales were $1.307 billion, with year-over-year growth of 5% as reported and 5.3% in constant currency.
- The company expects constant currency revenue growth between 4% and 6% for 2025, with currency headwinds estimated at approximately 100 to 120 basis points.

Operational Challenges and Initiatives:
- Orthopedic business sales grew 2.4% in the fourth quarter and 2.5% for the full year on a constant currency basis, which was below market performance due to supply challenges.
- The company engaged a top-tier consulting firm to drive operational changes rapidly and improve its orthopedic business.

AirSeal and Growth Drivers:
- The AirSeal product line showed strong growth in 2024, with record capital and disposable sales, despite market dynamics.
- The continued demand for AirSeal is attributed to its role in robotic surgery and laparoscopy, providing significant clinical benefits such as reduced patient pain and quicker recovery times.

Financial Performance and Margin Improvement:
- CONMED's adjusted gross margin for the fourth quarter was 57.6%, a 120 basis point improvement over the prior year quarter.
- This improvement reflects long-term mix tailwinds in the portfolio and successful operational leverage despite challenges.