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

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.”

REGIONAL PERFORMANCES

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 further builds on strong comparison quarter

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.

Asia Pacific with negative growth due to China

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.

Latin America consistently shows high performance

The region grew 20.0% organically, while revenue came to CHF 47 million. All segments performed strongly with Latin America’s home brand Neodent complemented by the Straumann premium implantology segment. A consistent highlight is the VirtuoVivo intraoral scanner market penetration which leads to strong revenue growth. While still at a low base, the orthodontics business grew very rapidly in the first quarter throughout the region. Overall, the region’s largest market Brazil grew strongly, while Mexico, Argentina and Colombia also showed very strong performance.  

STRATEGIC PROGRESS / NEWS HIGHLIGHTS

Continued investment in growth to build a unique customer experience and production capacities

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.

Dynamic navigation system for dental surgeries launched

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.

ClearCorrect with major launches to improve value proposition

ClearCorrect launched a series of new developments allowing clinicians to treat more advanced cases. To efficiently treat patients who have missing or erupting teeth ClearCorrect introduced pontics, bars, and guides. In addition to improving the aligner itself, ClearCorrect is launching a series of improvements with regards to treatment planning, including an enhanced, dynamic prescription form to improve communication between clinicians and treatment planning teams. For submitting intraoral scans, enhancements have been made to optimize two intraoral scanner integrations. This update to the digital workflow is completed by the launch of ClearPilot 6.0. This software release introduces a series of upgrades designed to give providers a more intuitive and user-friendly treatment planning experience.

Annual General Meeting (AGM) approved all proposals including the election of a new Board member and increased dividend

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.

OUTLOOK 2023 (BARRING UNFORESEEN CIRCUMSTANCES)

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.

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