Market ChallengesOrtho sales in China were significantly down and are expected to continue at the same extent in the near term.
Operational RisksKey risks to achieving 2025 margin targets include challenges with cost savings, performance in China, and operational leverage, particularly in the US orthopedic market.
ProfitabilityS&N's smaller scale compared to larger competitors and a heavier relative Ortho weighting have contributed to a higher cost of inventory and lower margins.