Enovis Corporation reported significant financial results for the third quarter and the first nine months of fiscal 2024, highlighting a robust increase in net sales but continued operating and net losses. For the three months ended September 27, 2024, net sales reached $505.2 million, a 21.0% increase from $417.5 million in the same period of 2023. For the nine months, net sales totaled $1,546.6 million, up 23.5% from $1,252.2 million year-over-year.
The company's gross profit for the third quarter was $286.5 million, compared to $243.0 million in the prior year, while gross profit for the nine months increased to $873.2 million from $726.4 million. However, Enovis reported an operating loss of $(31.7) million for the third quarter, worsening from $(20.5) million in Q3 2023, and a nine-month operating loss of $(111.0) million, compared to $(60.0) million in the previous year. The net loss from continuing operations for the third quarter was $(33.5) million, up from $(19.5) million, and $(123.8) million for the nine months, compared to $(56.9) million in 2023.
The increase in losses was attributed to higher strategic transaction costs related to the integration of the LimaCorporate acquisition, which was completed on January 3, 2024, for an enterprise value of €800 million. This acquisition is expected to enhance Enovis's offerings in the Reconstructive segment, which saw a remarkable 56.9% increase in sales for the third quarter, reaching $231.0 million, driven largely by the Lima acquisition.
Total current assets rose to $1,203.1 million as of September 27, 2024, from $896.5 million at the end of 2023, while total liabilities surged to $2,216.8 million from $1,088.6 million, primarily due to increased long-term debt, which rose to $1,325.4 million from $466.2 million. The company also reported a significant increase in cash flows from financing activities, totaling $866.9 million, compared to $125.0 million in the prior year, reflecting the financing activities related to the Lima acquisition.
Enovis's effective tax rate for the third quarter was 21.4%, slightly lower than the previous year's 23.7%. The company continues to face challenges, including rising interest expenses and restructuring costs, but remains focused on integrating recent acquisitions and expanding its market presence.
About Enovis CORP
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