Medical technology Straumann cannot quite meet high expectations despite growth
The dental manufacturer Straumann continued to grow in 2024. However, the company was not quite able to meet expectations, some of which were very high.
19.02.2025, 07:48
19.02.2025, 10:14
SDA
Last year, Straumann generated sales of 2.5 billion Swiss francs, an increase of 3.7 percent. In organic terms - i.e. excluding exchange rate effects and acquisitions - Straumann grew by 13.7 percent. Compared to the previous year, when the increase was 9.8 percent, growth has therefore accelerated again somewhat.
In the Asia and EMEA region in particular, sales also rose sharply over the year as a whole. In contrast, sales growth in North America was comparatively modest at +3.6%. However, as CEO Guillaume Daniellot said in an interview with AWP, Straumann still grew faster than the overall stagnating US market.
With regard to the Asia/Pacific region, the CEO announced that the organic growth rate of just under 19 percent in the fourth quarter is a good indication for the current year. The 33% increase in the past year was due not least to some catch-up effects and a partly low basis for comparison, the manager continued.
Profitability in line with targets
At profit level, Straumann itself bases its forecast on core operating profit (core EBIT), which is adjusted for items such as amortization from purchase price allocation, impairments, restructuring costs, etc. This rose to 650 million. This rose to 650 million and the corresponding margin was 26 percent. Adjusted for currency effects, it amounted to 27.6 percent and was thus exactly in the range of 27 to 28 percent forecast by Straumann.
The bottom line was a profit of 439 million after 247 million in the previous year. Straumann only partially met analysts' expectations with these figures. While sales and organic growth were slightly above the AWP consensus, profits came in lower in some cases.
Higher dividend proposed
Shareholders are to receive a higher dividend of CHF 0.95 per share. This compares to CHF 0.85 in the previous year.
Looking ahead, the company is aiming for organic sales growth in the high single-digit percentage range and a core EBIT margin that is 30 to 60 basis points above the 2024 figure of 26.7%. It is above all the outlook that experts have rated as rather sobering in their initial comments.
Straumann is a growth stock that is expected not only to meet the guidance, but rather to exceed it, writes the responsible Vontobel analyst.
No worries about the new US government
Meanwhile, the new US government is of little concern to CEO Daniellot. Straumann has production capacities in the USA, so the Group should not really be affected by possible tariffs. In general, it remains to be seen what will ultimately come of the many announcements made in recent weeks.
