Dental implant maker Straumann cautious for 2024, bets on China growth
Reuters
Published Feb 27, 2024 06:46
Updated Feb 27, 2024 09:41
By Andrey Sychev and Marleen Kaesebier
(Reuters) -Swiss dental implant maker Straumann on Tuesday forecast steady 2024 sales growth, taking a cautious stance amidst prolonged economic uncertainty.
"While geopolitical and macroeconomic uncertainties are going to continue to impact consumer confidence in different geographies, the overall patient flow is expected to keep a positive dynamic," CEO Guillaume Daniellot said in a statement.
The shares were 3% lower in early trading, with analysts pointing to profit taking after a four-month rally to two-year highs.
Jefferies analysts wrote in a note that a 154 million franc goodwill impairment stemming from its 2020 acquisition of DrSmile might weigh on the shares.
The group, which specialises in tooth replacement and orthodontics, expects its organic revenue to grow in a high single-digit percentage this year, with a margin on earnings before interest and taxes around 26% at constant currency rates.
Analysts polled by LSEG were expecting sales to grow by 8.2% and an EBIT margin of 24.9% in 2024.
Straumann reported 9.8% organic growth in 2023 revenue to 2.4 billion Swiss francs ($2.7 billion) and an operating profit margin of 25.1%.
That was in line with analysts' expectations even as a strong Swiss franc against U.S. dollar hit Straumann which makes most of its earnings outside of Switzerland.
Its fourth-quarter Asia-Pacific sales grew by 40%, boosted by the Chinese government's value-based procurement plan - a tender programme for healthcare products aimed at lowering costs for consumers.
Sales grew by 7.2% in North America in local currencies and by 5.8% in Europe, Middle East and Africa (EMEA), slower when compared to the previous year's results.
Europe showed steady patient flow growth, the company noted.
Straumann will propose a dividend of 0.85 francs per share for 2023, up from 0.8 francs a year earlier.
($1 = 0.8791 Swiss francs)
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Written By: Reuters
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