WILMINGTON, DE — Enovis Corporation (NYSE: ENOV), a leading player in the medical technology sector, recently revealed its fourth-quarter and fiscal year financial results for 2023. The company reported an 11% increase in fourth-quarter net sales, reaching $455 million. This growth includes 8% organic growth and reflects the successful performance of its Recon and P&R units, as well as recent acquisitions.
In the same quarter, Recon sales grew by 18%, including 11% organic growth, while P&R saw an 8% increase, with 6% organic growth. Enovis also reported a modest net income from continuing operations of $3 million, along with an adjusted EBITDA of $82 million, or 18% of sales. However, this represents a 30-basis point decline compared to the same period in 2022, due in part to the temporary dilution caused by recent acquisitions.
For the full fiscal year of 2023, Enovis posted net sales totaling $1.7 billion, a 9% increase year over year, including 8% organic growth. Both Recon and P&R units contributed significantly to this growth, with Recon sales increasing by 18%, including 14% organic growth, and P&R sales growing by 5%.
Despite recording a net loss from continuing operations of $54 million for the year, the company’s adjusted EBITDA stood at $269 million, or 16% of sales, marking an increase of 70 basis points compared to 2022. Adjusted earnings per diluted share were reported at $2.40.
CEO Matt Trerotola expressed satisfaction with the company’s 2023 performance, noting that revenues and operating margins exceeded expectations. He also highlighted the company’s ongoing investments in growth initiatives and mergers and acquisitions. Trerotola is optimistic about 2024, describing it as a “transformative year” as the company integrates its recent acquisition, LimaCorporate S.p.A. (Lima), and introduces new products across its Recon and P&R units.
Among the major highlights for Enovis in 2023 was the double-digit growth in Recon sales across all categories and geographies. The company also improved its adjusted EBITDA margin by 70 basis points year over year. This improvement was driven by a favorable product and geographic mix, successful new product launches, and the successful execution of key EGX initiatives. These gains were somewhat offset by increased investments in research, development, and building capabilities in enabling technology and foot & ankle.
The acquisition of Lima for an enterprise value of approximately €800 million was another significant milestone for Enovis in 2023, transforming its Recon segment.
Looking ahead to 2024, Enovis forecasts revenues in the range of $2.05-2.15 billion, including $290-300 million in revenue related to the Lima acquisition. The company also expects its adjusted EBITDA to be between $365-$380 million, inclusive of $70-75 million from Lima. Full-year adjusted earnings per diluted share are projected to be in the range of $2.50-$2.65.
Enovis’ strong 2023 performance and positive 2024 outlook highlight the company’s robust growth strategy, which blends organic growth with strategic acquisitions. As the company continues to invest in new products and technologies, industry watchers will be keenly monitoring its progress in the coming year.
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