Medical technology Straumann raises profit targets and sells Dr Smile
Straumann made such good progress in the first half of the year that the dental implant manufacturer is also more confident for the year as a whole than before. The company is also selling its Dr-Smile business to the Impress Group.
14.08.2024, 07:25
SDA
In a press release issued on Wednesday, the company put sales at 1.27 billion Swiss francs, an increase of 11.3 percent. In organic terms, i.e. excluding acquisitions and currency effects, growth amounted to 16.1 percent.
After Straumann's share price fell significantly in the first quarter due to very strong regional differences, the focus is now somewhat more on the development of the individual sales regions. Sales in the most important region, Europe, Middle East & Africa, increased by 6.9 percent to 519.8 million after six months. In North America, revenue increased by 1.1 percent, while Straumann's sales in Asia rose by 41.2 percent and in Latin America by 8.6 percent.
The Group achieved even stronger growth at profit level. At CHF 336.1 million, operating profit (EBIT) was higher than the CHF 296.6 million recorded in the first half of 2023. The bottom line was a higher net profit of CHF 268.2 million (previous year: CHF 206.0 million).
With these figures, the Basel-based company largely exceeded analysts' expectations. Only sales fell slightly short of expectations.
Outlook confirmed
Straumann is adjusting its previous outlook for the further course of business upwards. Accordingly, the company is now aiming for organic sales growth in the low double-digit percentage range for the full year 2024 (previously high single-digit) and a margin of around 27 to 28 percent (previously around 26%) at constant exchange rates.
With regard to the Dr-Smile business, the Group signed a binding agreement to sell it to the Impress Group at the beginning of this week. The latter is aiming for a leading position in the consumer business with transparent aligners in Europe.
