Straumann Group achieved CHF 596 million revenue in the first quarter and launched advanced digital solutions

Straumann Holding AG / Key word(s): Miscellaneous/Quarter Results

03-May-2023 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

• First quarter revenue of CHF 596 million or 3.4% organic revenue growth
• Dynamic organic growth in all regions, with the anticipated strong negative impact from Covid-19 and Volume Based Procurement process in China
• New advanced digital solutions released at the International Dental Show in Cologne: Straumann Falcon, Smilecloud smile design collaboration platform and Clear Correct launches 
• Outlook 2023 confirmed: Organic revenue growth is expected in the high single-digit percentage range and profitability at around 25% including growth investments

Basel, May 3, 2023: Straumann Group reached CHF 596 million in revenue or organic growth of 3.4% in the first quarter of 2023, building upon a very strong comparative basis from the previous year. Overall patient flow remained good in most countries leading to a dynamic growth rate in all regions. In China, patient flow was impacted by Covid-19 effects at the beginning of the quarter and the Volume Based Procurement process in the second part of the first quarter which is reflected in the overall Asia Pacific performance. Revenue in Swiss francs was impacted by a negative currency development mainly related to the Euro, Turkish Lira, Japanese Yen and Chinese Renminbi.

The good first quarter result was accompanied by digital solution launches which will further support our implantology and orthodontics offering in the future.

Guillaume Daniellot, Chief Executive Officer, said: “An exciting first quarter lies behind us with solid growth considering the anticipated challenges and promising digital solutions launched at the International Dental Show in Cologne. It was very rewarding to receive first positive customer feedback on the new digital solutions we have been investing in over the past two years. Our implant portfolio continued to grow in both, the premium and value segment, supported by strong intraoral scanner performance. In addition, we are proud of the wide range of ClearCorrect launches which significantly strengthen our offering in the clear aligner business. With this in mind, we are confirming our full-year outlook despite the uncertainties around potential economic and geopolitical impacts.”

Strong growth in Europe, Middle East and Africa on top of last year’s high performance

Europe, the Middle East and Africa (EMEA) as the Group’s largest region, had a very good first quarter. EMEA grew organically by 9.2% compared to the first quarter of 2022, accounting for CHF 287 million. This growth was driven by all segments including our core implantology business which was complemented by a strong contribution from orthodontics. Intraoral scanners continued to show high revenue growth particularly in Eastern and Southern Europe as well as in the Middle East. Germany being the largest country drove revenue in absolute terms while Turkey continued to show very strong growth.

North America reached 7.2% organic growth in the first quarter, while revenue came to CHF 182 million. The US delivered excellent growth on top of last year’s very high baseline. The performance was driven by immediacy implant solutions and intraoral scanners where the business continues to gain market share. Orthodontics improved its service level and showed solid growth in the first quarter. The challenger brand Neodent delivered a very solid performance throughout the quarter.

Without China, the Asia Pacific region reported a solid performance. Among the standout successes were the growth achieved in Japan, Australia, Thailand and India. Also, newly established countries such as Vietnam and Malaysia are accelerating growth. The implantology solutions showed solid growth across the segments while the challenger brands Neodent and Medentika performed very well. The region's growth was hampered by the combined effects of Covid-19 in China during the first two months of the year, and the Chinese Volume Based Procurement pricing which has been quickly implemented both in the public and private segments, driving average selling prices to a much lower level.

On the other side, as expected, the implant volume has significantly accelerated at the end of the quarter, coming from the pent-up demand generated from the past few months.

Overall, the Asia Pacific region showed negative organic revenue growth of -23.5% and accounted for CHF 80 million in revenue.

To achieve its growth ambition, the Group keeps on investing in building a unique customer experience through digital solutions, expanding geographically and building manufacturing capacity to deliver on the demand. As an example, Neodent is already planning its next expansion for future growth and acquired additional land for a potential third manufacturing site.

To deliver benefits such as precision and efficiency during clinicians’ daily practice, Straumann introduced a new software solution for its Virtuo Vivo intraoral scanner which improves the speed and accuracy of digital impression-taking. The intraoral scans are connected to the Straumann AXS digital platform which will provide a seamless integration between the different solutions, eliminating the need for entering patient data manually in different systems along the treatment journey.

Additionally, Straumann launched Smilecloud, a smile design and centralized collaboration platform, in selected European countries. Smilecloud allows clinicians to design virtual mock-up smiles for patients supported by AI technology and 3D biometric libraries to achieve the best possible outcome for patients. Smilecloud will enable collaboration among dental professionals and will allow them to improve interaction with patients by discussing their future smile design.

In addition, Straumann launched its first dynamic surgical navigation system to perform implant surgeries in a fully digitally guided workflow. Straumann Falcon is a computer-assisted system that surgeons use to navigate their instruments during dental procedures. Enabling visualization of the precise instrument location in the surgical field in real-time, it allows clinicians to avoid critical anatomical structures and supports precise implant positioning while giving them the flexibility to adapt to the clinical situation during surgery.

At the recent AGM, the shareholders of Straumann Holding AG approved all the Board’s proposals. This included the election of a new independent Board member Dr. Olivier Filliol, as well as the approval of the 2023 increased cash dividend of CHF 0.80 per share, which was paid on April 13, 2023.

Macroeconomic uncertainties remain and geopolitical tensions did not ease up during the last period. However, with an estimated globally addressable market of CHF 19 billion, the Group remains confident that it will continue to gain market share and progress in all its strategic priorities. Despite the impact of the Chinese Volume Based Procurement process which will require a year of transition and readjustment in China, the Group will continue to invest in its growth and transformation. As a result, the Group confirms its full-year outlook and expects organic revenue growth to be in the high single-digit percentage range and profitability at around 25% including growth investments.

About Straumann Group

The Straumann Group (SIX: STMN) is a global leader in tooth replacement and orthodontic solutions that restore smiles and confidence. It unites global and international brands that stand for excellence, innovation and quality in replacement, corrective and digital dentistry, including Anthogyr, ClearCorrect, Dental Wings, Medentika, Neodent, NUVO, Straumann and other fully/partly owned companies and partners. In collaboration with leading clinics, institutes and universities, the Group researches, develops, manufactures and supplies dental implants, instruments, CADCAM prosthetics, orthodontic aligners, biomaterials and digital solutions for use in tooth correction, replacement and restoration or to prevent tooth loss.

Headquartered in Basel, Switzerland, the Group currently employs more than 10’400 people worldwide. Its products, solutions and services are available in more than 100 countries through a broad network of distribution subsidiaries and partners.

Straumann Holding AG, Peter Merian-Weg 12, 4002 Basel, Switzerland   

  Phone: +41 (0)61 965 11 11

Homepage: www.straumann-group.com

Contacts:

Straumann will present its 2023 first-quarter results to representatives of the financial community and media in a webcast telephone conference call today at 10.30 a.m. Swiss time.

The webcast can be accessed via www.straumann-group.com/webcast. A replay of the webcast will be available after the conference.

If you intend to ask a question during the Q&A, we kindly ask you to pre-register for the conference call through this link “Conference call” . We also recommend that you download the presentation file in advance using the direct link in this media release before joining the conference call.

Presentation

The conference presentation slides are attached to this release and available on the Media and Investors pages at www.straumann-group.com.

UPCOMING CORPORATE / INVESTOR EVENTS

Disclaimer

This release contains forward-looking statements that reflect the current views of management, and which are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Straumann Group to differ materially from those expressed or implied in this document. Statements are made on the basis of management's views and assumptions regarding future events and business performance at the time the statements are made. They are subject to risks and uncertainties including, but not confined to, future global economic conditions, pandemics, exchange rates, legal provisions, market conditions, activities by competitors and other factors outside Straumann's control. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Straumann is providing the information in this release as of this date and does not undertake any obligation to update any statements contained in it as a result of new information, future events or otherwise.  This release constitutes neither an offer to sell nor a solicitation to buy any securities.

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[1] Excluding the effects of currencies and acquisitions