- Strong organic revenue growth of 15.1% and first-quarter revenue of CHF 643.8 million
- Different regional growth dynamics, with Asia Pacific outperforming
- New premium implant system iEXCEL successfully launched in North America
- AlliedStar intraoral scanner launched in China
- Outlook 2024 confirmed: the Group aims to achieve organic revenue growth in the high single-digit percentage range and profitability at around 26% at constant 2023 currency rates or between 24% and 25% including expected FX headwind
Guillaume Daniellot, Chief Executive Officer, said: “We are off to a strong start in 2024, thanks to our teams which relentlessly focus on execution, innovation, and growth. We successfully launched two important innovations in the first quarter with our iEXCEL premium implant line in the US and the AlliedStar intraoral scanner in China. These two launches demonstrate our commitment to innovation and our ability to deliver value to our customers. They also highlight our culture of excellence in execution, collaboration, and customer-centricity. In addition, we are continuing to invest in our future by expanding our manufacturing capacity and advancing our digital transformation. With these achievements and despite the fact that the following comparison quarters this year will be more demanding and macroeconomic challenges will remain, we are confident that we are on track to meet our 2024 outlook.”
REGIONAL PERFORMANCES
Good growth in Europe, Middle East and Africa built on a strong comparison quarter
The Europe, Middle East, and Africa (EMEA) region, as the Group’s largest region, reported revenue of CHF 283.9 million. This resulted in a 5.2% organic revenue growth, considering a strong comparison base in the prior-year period. Germany, France, and Spain remained the largest revenue drivers. The Group continued to gain market share with both the premium and challenger implantology brands. The orthodontics brand ClearCorrect grew double-digit in the region overall, while the doctor-led direct-to-consumer business, namely DrSmile, continued to be impacted by weak demand. In addition, the Group acquired its long-standing distributor in Poland to further accelerate growth.
North America with lower patient flow but continuing to outperform the market
In the first quarter, North America's revenue was CHF 177.8 million, a 3.7% organic growth despite a softening implantology market in the US, according to Group estimates. The US, being the largest country in the region, showed positive growth, while Canada performed well, leading to additional market share gains in the region. The good performance was driven mainly by immediacy implant solutions and the challenger brand Neodent, which continued to grow well in the region. ClearCorrect continued to improve its performance, and biomaterials showed good growth. The Straumann AXS platform drove the Group’s Smile-in-a-Box solution while customer demand for digital solutions slowed down, also considering last year’s very strong first-quarter results in this business area.
Asia Pacific continued its extraordinary growth
The Asia Pacific region marked a historical high with CHF 130.8 million in revenue and an organic growth of 82.0%. China stood out with its exceptional organic growth, boosted by continued strong momentum and a low comparison base. In the first quarter of 2023, the country suffered from COVID-19 and postponed treatments, due to the anticipated implementation of the volume-based procurement (VBP) process, which both had a severe impact on patient flow. This first quarter, the implantology business was again the primary growth driver, with both premium and challenger brands playing an instrumental role. Neodent performed very well in Australia, India and Southeast Asia, expanded geographically to Indonesia, and established an education center in Malaysia. The orthodontics business contributed positively to the overall regional performance, although on a lower basis.
Latin America – double-digit growth building on a strong comparison basis
With a revenue of CHF 51.4 million and an organic growth of 11.5% in the first quarter, based on a high figure in the previous year, the Latin America region (LATAM) achieved strong results thanks to all business segments. Brazil, as the largest market in the region, maintained its positive momentum. The Group increased its market share in Brazil and other LATAM countries, especially Argentina and Peru, with its local implant brand, Neodent. The ClearCorrect business also delivered an impressive performance, expanding rapidly into new markets. Intraoral scanners also contributed to the region’s growth.
STRATEGIC PROGRESS / NEWS HIGHLIGHTS
High-performance premium implant system iExcel launched in North America
In March 2024, iEXCEL, a high-performance premium implant system, was launched successfully in North America. The new implant system 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 the customers' diverse needs for both bone and tissue-level procedures.
AlliedStar launched its first intraoral scanner in China
Intraoral scanners are the entry point to the dental digital workflow and are, therefore, of strategic importance. In January 2024, AlliedStar successfully launched its first intraoral scanner in China. Several distributors and a dedicated digital sales team have been added to the existing distribution channels. The launch offers customers in China a competitive intraoral scanner solution.
ClearCorrect strengthened its value proposition
In the first quarter of the year, ClearCorrect further improved its value proposition and launched its next software generation ClearPilot 8.0, which offers advanced editing tools, expanding the workflow and simplifying the visualization of treatment plans. The new Shared Services Center in Costa Rica ramped up, providing solutions for Latin America, additional offerings such as treatment planning for ClearCorrect and a customer service center as well as shared services for the business unit Connected Customer Solutions for North America.
Straumann AXS infrastructure is set up to fulfill different requirements in all regions
In the first quarter of 2024, the Straumann Group made significant progress in building the infrastructure of its digital platform, Straumann AXS, which is now technically set up for all regions to support the customer experience in ordering Straumann solutions. This is an important milestone, as Straumann AXS serves as the foundation for an integrated cloud-based clinical workflow for customers in both implantology and orthodontics. Going forward, services are being added to the platform in a phased approach to prepare for the launch in the regions beyond the US. In January 2024, the Group received the critical ISO 27001 certification for Straumann AXS, underscoring its commitment to maintaining the highest standards in protecting sensitive information.
The Annual General Meeting approved all proposals including the election of the new Chair, two new Board members, and the dividend increase
At the Annual General Meeting on April 12, 2024, the shareholders of Straumann Holding AG approved all of the Board’s proposals. This included the elections of Petra Rumpf as Chair of the Board and Xiaoqun Clever-Steg and Stefan Meister as new Board members. The increased cash dividend of CHF 0.85 per share was paid on April 18, 2024.
OUTLOOK 2024[2] CONFIRMED
The Group expects geopolitical and macroeconomic uncertainties to continue to impact consumer demand in different geographies. Thanks to the differentiated value proposition in its strategic segments, combined with strong execution from all its team members worldwide, the Group remains confident that it will continue to gain market share within its estimated global addressable market of above CHF 19 billion. Furthermore, the Group highlights its geographical diversification, catering to all price points, and its extensive training efforts, resulting in more clinicians being able to perform implant and orthodontic procedures. In the meantime, the Group continues to invest in growth and transformation to maintain its competitive edge in the future.
As a result, the Group confirms its outlook for 2024: to achieve organic revenue growth in the high single-digit percentage range and profitability at around 26% at constant 2023 currency rates or between 24% and 25%, including expected FX headwinds.
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 currency effects and acquisitions
[2] Barring unforeseen events.
