Company: OFIX
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000950170-25-026066
Chunk: 274

Company: Orthofix Medical Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 274
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337,169

    12.3
    %

    44.2
    %

    Gross margin

    68.3
    %

    65.1
    %

    73.2
    %

    3.2
    %

    -8.1
    %

2024 Compared to 2023

Gross profit increased $59.6 million, or 12.3%

•Increase in gross profit driven by net sales growth across all principal product categories

•Increase of $23.9 million driven by a reduction of amortization of the inventory fair value step-up recognized in the Merger, which is being amortized over the expected sales cycles of the acquired inventory 

Sales, General, and Administrative Expense

    Percentage Change

    (U.S. Dollars, in thousands)
     
    2024

    2023

    2022

    2024/2023

    2023/2022

    Sales, general, and administrative
     
    $
    532,525

    $
    530,395

    $
    308,776

    0.4
    %

    71.8
    %

    As a percentage of net sales

    66.6
    %

    71.0
    %

    67.0
    %

    -4.4
    %

    4.0
    %

2024 Compared to 2023

Sales, general, and administrative expense increased $2.1 million 

•Increase of $16.0 million in variable compensation expenses, including commissions, largely resulting from changes in sales volume and sales mix

•Increase of $7.3 million in depreciation expense primarily related to an increase in deployed instrumentation to support increased sales demand

•Increase of $7.0 million in succession charges as a result of recent changes in executive leadership positions

•Partially offset by a decrease of integration-related expenses of $16.2 million primarily comprised of professional fees, advisor fees, and severance and retention costs

•Further offset by a decrease in sales, general, and administrative costs of over $10.0 million as a result of the realization of synergies, primarily related to compensation costs, professional fees, and share-based compensation expense

Research and Development Expense

    Percentage Change

    (U.S. Dollars, in thousands)
     
    2024

    2023

    2022