William McMahon's questions to ZimVie Inc (ZIMV) leadership • Q4 2024
Question
William McMahon questioned the key drivers for margin expansion in 2025 and its expected cadence, sought an update on the Valencia plant's capacity and future plans, and asked about anticipated R&D spending for upcoming product launches.
Answer
CFO Richard Heppenstall identified margin drivers as maintaining the ~65% gross profit level and a step-down in SG&A in Q2 as transition service agreements conclude. He also detailed plans to in-source third-party manufacturing to drive further efficiencies. CEO Vafa Jamali added that the current R&D spending level is sufficient for the planned continuous pipeline of innovation, and no significant increase in investment is anticipated.