Strong organic revenue growth in the third quarter

Straumann Holding AG / Key word(s): 9 Month figures/Quarter Results

29-Oct-2024 / 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.

• Third-quarter revenue amounted to CHF 585.5 million, a strong increase of 11.2% organic growth, bringing revenue in the first nine months to about CHF 1.9 billion
• Global launch of intraoral scanner SIRIOS
• Continued investments in capacity expansion
• Outlook 2024 confirmed: organic revenue growth in the low double-digit percentage range and profitability in the 27-28% range at constant 2023 currency rates

REVENUE BY REGION

[1] Figures refer to continuing operations, following the agreement signed on August 13,2024, to sell the Group’s DrSmile business to Impress Group

[2] Excluding the effects of currencies and acquisitions

Basel, October 29, 2024: Straumann Group revenue reached CHF 585.5 million, a strong organic growth of 11.2% in the third quarter of 2024. As a result, the first nine months amounted to about CHF 1.9 billion in revenue, representing 14.5% organic growth and 10.2% in CHF. The patient flow in all regions remained at the same level as this year's previous quarters. Europe, Middle East and Africa (EMEA), the largest region of the Group, achieved double-digit growth. Asia Pacific was again the largest contributor to organic revenue growth, while the comparable baseline in the region is gradually normalizing at a higher level, post the introduction of the volume-based procurement process in China. The Latin America region continued to deliver high revenue growth rates. North America’s revenue grew low single-digit in the third quarter despite a continued soft implantology market, according to the Group’s estimates. Across the regions, the Group’s implant portfolio continued to grow in both premium and challenger segments, supported by a strong orthodontics business and a positive contribution from the digital business.

Guillaume Daniellot, Chief Executive Officer, commented: “Our commitment to our customers and the dedication of our teams have once again helped us grow strongly, as we navigate regional variations. With the global launch of the SIRIOS intraoral scanner and the European pre-launch of the iEXCEL implant system in more markets, we are reinforcing our promise to innovation in oral health. From investing in education through events, such as the International Esthetic Days and the Neodent Symposium in San Diego, we are shaping the future of dental care with passion and purpose. Supporting our growth, we keep on expanding our operational capabilities in all regions, and with a new, third Neodent factory in Brazil, the international expansion of our leading challenger brand will be further supported. In view of what we have achieved so far, we confirm our full-year outlook for 2024.”

REGIONAL PERFORMANCES

Double-digit revenue growth in the largest region Europe, Middle East and Africa

The Europe, Middle East and Africa (EMEA) region reported revenue of CHF 216.4 million or 11.4% organic growth in the third quarter. This growth was driven by all segments, thanks to intensified customer acquisition and education efforts. Germany, the region’s largest market, as well as markets like Spain, Italy and Belgium were among the main revenue growth contributors. The challenger implantology brands showed double-digit revenue growth. In the premium segment, Straumann continued to gain market share and launched its iEXCEL high-performance premium implant system in Germany, Italy and Spain. The initial feedback from European customers has been very positive. The region's strong innovation pipeline was further demonstrated by the successful pre-launch of Straumann Falcon and the growing momentum of GalvoSurge, which reinforced the region's overall results. The performance was complemented by a strong contribution from orthodontics, due to the team’s strong execution and an intensified focus on specialists on top of general dentists. In September, the sale of the doctor-led direct-to-consumer orthodontics business, DrSmile, was closed.

North America continued to grow and gain market share

In the third quarter, the North America region (NAM) reported revenue of CHF 162.9 million and an organic growth of 2.0%. Despite a continued soft implantology market and slow patient flow in the U.S., the implantology business with both premium and challenger brands further gained market share, according to the Group’s estimates. The digital business also grew, although at a lower level, and the orthodontics business was soft in the U.S.

Asia Pacific showed strong revenue growth against a strong comparison quarter

The Asia Pacific (APAC) region achieved revenue of CHF 149.4 million or 19.7% organic growth against a strong prior-year period. The implantology business remained the primary growth driver, both in the premium and challenger segment, while the comparable baseline in the region is gradually normalizing at a higher level, post the introduction of the volume-based procurement process in China. Demand for AlliedStar intraoral scanners in China showed strong momentum. Asia Pacific outside of China also showed double-digit revenue growth, driven by markets like Thailand, India and Malaysia. The challenger brands played a significant role in the growth across the region, and, on a lower basis, the premium implantology as well as the orthodontics business, contributed positively to the overall regional performance.

Latin America performance consistently strong with a double-digit revenue growth

In the third quarter, the Latin America region reported revenue of CHF 56.8 million, demonstrating a strong 18.9% organic growth. The implant business, notably the challenger brand Neodent, remained the primary growth driver, with markets such as Brazil and Colombia showing strong revenue growth. Furthermore, the orthodontics business contributed significantly to the regional performance across the region, with Brazil and Mexico as main revenue contributors. The digital business also added to the regional growth, particularly with intraoral scanners.

Global launch of Straumann SIRIOS intraoral scanner

In September, at the International Esthetic Days in Mallorca, Spain, the intraoral scanner (IOS) Straumann SIRIOS was launched. The well received introduction marks the start of the global launch of the wireless IOS, that is fully integrated into the Group’s digital platform, Straumann AXS. SIRIOS complements the Group’s IOS offering in the mid-to entry segment.

Investments in capacity expansion; construction of a third Neodent factory

To support the Group’s ambitious growth strategy, significant investments in operational capacity and global network expansion are underway. As the new China Campus ramps up, the Group has also laid the cornerstone for a third manufacturing facility in Curitiba, Brazil. The new site will play an important role in continuing the international expansion of the Group's leading challenger brand, Neodent, further solidifying its position in the global market. The new greenfield facility, which will support the global distribution of Neodent solutions, will cover a total of 40 000m² and is scheduled to be operational in 2026. These developments underscore the Group’s commitment to driving innovation and scaling its business to meet growing global demand.

Jason Forbes, Chief Consumer Officer, to leave

Jason Forbes, who has served as Chief Consumer Officer since 2022, will leave Straumann Group at the end of October to explore new opportunities. The Group extends its gratitude to him for his numerous contributions. The position will not be replaced.

The Group remains confident that, amidst the ongoing geopolitical and macroeconomic uncertainties, it will continue to gain market share within its estimated global addressable market of more than CHF 19 billion. The Group also believes in its capability to cater to various customer requirements and price points, its geographic diversification and extensive educational initiatives that equip a greater number of clinicians with the expertise to conduct implant and orthodontic treatments. The Group continues to invest in digital transformation, capacity expansion, and more in go-to-market activities. Subsequently, the Group confirms its outlook for 2024: to achieve organic revenue growth in the low double-digit percentage range and profitability in the 27-28% range at constant 2023 currency rates.

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, 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 about 11’500 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 2024 third-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 session, 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 press release contains forward-looking statements that reflect the current views, beliefs and expectations of management 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.