- Third-quarter revenue amounts to CHF 571 million, an increase of 11% organic growth, bringing revenue in the first nine months to CHF 1.8 billion
- Agreement to acquire AlliedStar, an intraoral scanner (IOS) technology company in China
- Pre-launch of iEXCEL, a new high-performance premium implant system
- Outlook 2023 confirmed: Organic revenue growth is expected in the high single-digit percentage range and profitability at around 25% including growth investments
Guillaume Daniellot, Chief Executive Officer, commented: “Our teams have once again demonstrated their commitment and dedication by achieving a strong performance, especially considering the challenging macroeconomic environment in the third quarter. At the same time, I’m proud to announce the pre-launch of our latest innovation iEXCEL, a new high-performance premium implant system that provides clinicians with greater versatility and simplicity in their implant treatments. This quarter, we also made a strategic investment in AlliedStar, enabling the Group to offer competitive intraoral scanner solutions in China and in additional price-sensitive markets and customer segments in the future. This acquisition aligns perfectly with our goal to become a digitally-powered oral care company.”
Revenue in Swiss francs was impacted by a negative currency development mainly related to the Euro, US Dollar, Chinese Renminbi, Turkish Lira, and Japanese Yen.
STRATEGIC PROGRESS
Agreement to acquire AlliedStar, an intraoral scanner (IOS) technology company in China
The Straumann Group has signed an agreement to fully acquire AlliedStar over the next eight years. It will enable the Group to offer customers a comprehensive and competitive intraoral scanner solution portfolio for various customer segments in the future. The AlliedStar scanner portfolio is going to be seamlessly connected to the Straumann AXS platform which will be launched in the Asia Pacific region in 2024. As part of the Straumann Group, AlliedStar will continue to serve various customer groups through parallel distribution channels.
Pre-launch of iExcel, a new high-performance premium implant system
At the International Esthetic Days and the European Association for Osseointegration, the Group pre-launched iEXCEL, a high-performance premium implant system designed to harmonize apically and fully tapered implants, now including a tissue-level option. This innovative solution provides clinicians with a unified prosthetic platform, a single connection and a streamlined digital workflow facilitated by one instrument set. These enhancements significantly reduce complexity and elevate the overall clinical performance to better cater to our customers' diverse needs for both bone and tissue-level procedures.
ClearCorrect to strengthen offering preparing to address more complex cases and expand
The third quarter demonstrates ClearCorrect further development into the treatment of complex cases. As we look ahead to the fourth quarter, the launch of the software upgrade ClearPilot 7.0 empowers clinicians by giving them more control over their treatment plans. With the use of visualization and advanced editing tools for arch adjustment and additional clinical feature controls, it is now easier for clinicians using ClearCorrect to build and visualize treatment plans.
Additionally, the ClearCorrect brand continued to extend its presence to markets such as Peru, Argentina, Jordan, and Iraq.
Florian Kirsch to lead the orthodontics and digital solutions business
In October, Florian Kirsch was appointed to lead orthodontics in addition to the digital solutions business unit and will be part of the Executive Management Board. Florian joined Straumann Group in 2010 and held several positions within the company including at Neodent in Brazil. He served as the Chief Financial Officer, Chief Operating Officer and was responsible for building up the ClearCorrect production in Brazil along with managing the resin production in Curitiba. In May 2022, Florian transitioned to lead Straumann Digital Solutions. Camila Finzi, who has previously led the orthodontics business, left the Group to pursue opportunities outside the organization. The company would like to thank Camila for her leadership and the strong contribution she delivered and wishes her all the best in her future endeavors.
REGIONAL PERFORMANCES
Europe, Middle East and Africa region – strongest revenue contributor
The Europe, Middle East and Africa (EMEA) region reported revenue of CHF 222 million or 7% organic growth in the third quarter compared to the same period in 2022. The main growth contributor was Germany, followed by Iberia, Italy, Turkey and Eastern Europe. The implant business continued to be the main growth driver, led by the premium brand Straumann. The challenger brands Neodent and Medentika experienced substantial and ongoing growth. The ClearCorrect business has had an increasing impact, with both biomaterials and intraoral scanners also contributing to the region's growth.
North America solid growth, despite macroeconomic challenges
In the third quarter, the North America (NAM) region reported revenue of CHF 165 million demonstrating a solid 6% organic growth. The consumer behavior in the NAM region was impacted by inflation, consequently influencing the demand for full-arch implant and orthodontic treatments. The implant business remains the primary growth driver, in particularly the challenger brands, while the digital business, driven by the robust growth of the Virtuo Vivo intraoral scanners, played a substantial role for the region’s growth.
Asia Pacific showed very strong revenue growth
The Asia Pacific region achieved revenue in the third quarter of CHF 128 million or 27% organic growth compared to the same period in 2022. Australia, Japan, China and India showed strong growth while the Chinese volume-based procurement process dynamics had a substantial positive impact on the entire region, driving significant volume increases. The implantology business is the primary growth driver, with both premium and challenger brands playing a significant role in the region's expansion. In addition, the orthodontics business is contributing positively to the overall regional performance although on a lower basis.
Latin America delivers double-digit growth for the tenth quarter in a row
In the third quarter of 2023, the Latin American market reached CHF 56 million, contributing to a 19% organic growth compared to the same quarter in 2022. Brazil continues to be the region's biggest revenue generator, driven by strong demand, particularly for its leading implantology brand, Neodent. Notably, Mexico, Peru and Chile demonstrated significant growth. The Virtuo Vivo intraoral scanner stands out as a major growth driver for the digital solutions business with Chile, Peru and Brazil being the primary contributors. Furthermore, the orthodontics business is making a significant contribution to the regional performance, extending its presence into Mexico, Colombia and Chile.
OUTLOOK 2023 (BARRING UNFORESEEN CIRCUMSTANCES)
Despite many geopolitical and macroeconomic uncertainties, the patient flow observed in the third quarter is expected to continue at a dynamic level, with regional variations in patient flow dynamics.
Thanks to the differentiated value proposition in the strategic segments, combined with strong execution from all our team members worldwide, the Group remains confident that it will continue to gain market share within its estimated globally addressable market of CHF 19 billion.
Furthermore, the Group highlights the geographical diversification, catering to all price points, and its extensive training efforts, resulting in more clinicians being able to perform implant procedures. In the meantime, the Group continues to invest in growth and transformation to maintain its competitive edge in the coming future. As a result, the Group confirms its full-year outlook despite the macroeconomic and geopolitical challenges and expects organic revenue growth to be in the high single-digit percentage range and profitability at around 25% including growth investments.
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.
[1] Excluding the effects of currencies and acquisitions.
