Lilly Z.'s questions to Integra Lifesciences Holdings Corp (IART) leadership • Q1 2025
Question
Lilly from JPMorgan Chase & Co., on behalf of Robbie Marcus, requested a breakdown of the $22 million tariff impact, specifically distinguishing between China-related tariffs and those from other regions. She also questioned the confidence level and degree of risk mitigation in the updated full-year guidance, considering the significant increase in projected ship holds.
Answer
CFO Lea Knight explained that costs on goods imported into the U.S. are recognized over 4-7 months, while tariffs on exports to China are recognized in about one month, with the Q2 impact being largely from China. Regarding guidance, Knight stated the original range was built to absorb $90M-$150M in supply disruptions. With the current estimate at $55M-$70M, she expressed confidence that the high end of the range remains achievable, supported by momentum in Integra Skin and other parts of the portfolio.