- Quarterly revenue of CHF 589 million, 27.2% organic revenue growth on previous year
- Strong organic double-digit growth in all regions; LATAM fastest-growing
- Launch of two innovative challenger brand implants, Neodent Zi and Anthogyr X3
- Acquisition of a strategic minority stake in CareStack, a cloud-based practice management software
- Outlook for 2022 confirmed: Organic revenue growth expected in the low double-digit percentage range and profitability is expected around 26% including major growth investments
Guillaume Daniellot, Chief Executive Officer, said: “I would like to thank every member of our global team for this strong start to the year. This quarter we focused heavily on execution. We started the implementation of several culture programs throughout the company, executed the recent launches the teams are introducing flawlessly and benefited from our implant portfolio catering to all price points. Digital Solutions, led by intraoral scanners, performed very well. Overall, we are constantly working on building our strategic priorities to ensure our long-term success. With this in mind, we are confirming our full year guidance despite the uncertainties around potential geopolitical impacts and COVID-19.”
Strong demand in Europe, Middle East and Africa
The Group’s largest region, Europe, the Middle East and Africa, had a strong first quarter, despite a negative currency effect. EMEA grew organically by 33% compared to the first quarter of 2021, accounting for CHF 267 million. This growth was driven by all segments with particularly strong contributions from orthodontics and implants. The Dental Service Organization (DSO) segment enjoyed very strong growth too, as did the Digital Solutions business. Iberia showed highly impressive results, driven by intraoral scanner sales, premium and challenger implants. Germany being the largest country drove revenue in absolute terms, and Turkey and Romania showed very strong growth.
North America continues its growth path
In the first quarter of 2022, North America grew organically by 20.7%, while revenue came to CHF 170 million. Both Canada and the US delivered double-digit growth, driven by strong demand across all major franchises. Within premium implants, the BLT, BLX and TLX lines all grew very strongly reflecting the focus on immediacy. In the challenger segment, Neodent performed very well over the quarter, lifted by a strong performance in the DSO segment and the region’s focus on competitive conversions. A strong performance for implants overall also drove our restorative business in abutments and guided surgery. In Digital Solutions, intraoral scanners were a key driver for growth, with a strong first quarter.
Asia Pacific growing steadily with some disruptions in China
Asia Pacific enjoyed organic growth of 18.4% and accounted for revenue of CHF 112 million. China remained a large and growing market, however, the growth dynamic was impacted by several local COVID-19 lockdowns, especially in Shanghai. Some impact was also observed from treatments being deferred because of the Chinese volume-based procurement initiative.
These impacts were partially compensated by other markets in the region, such as Japan and Australia which have seen strong growth. The recently established subsidiary in Malaysia performed very well and introduced ClearCorrect in the first quarter. The Group also expanded further within India, opening an office near Delhi. Across the region, premium implants and orthodontics contributed strongly to the overall performance.
Latin America fastest growing regionThe region grew 48.8% organically and accounted for CHF 39 million in revenue. All segments performed strongly and particularly in digital solutions the Straumann VirtuoVivo intraoral scanner was driving revenue. Orthodontics grew very rapidly over the first quarter throughout the region. In the premium implant segment, BLT implants significantly contributed to the strong results, in turn driving solid performances for abutments and restorative materials. Neodent continued to grow very strongly in the region and the new educational resource, Neodent Campus, was rolled out during the quarter. In both the premium and value implant segment, the Group gained market share throughout the region, thanks to the direct local footprint in several countries in Latin America. With the biggest market Brazil growing robustly, other countries such as Mexico and Argentina grew even faster. STRATEGIC PROGRESS / NEWS HIGHLIGHTS
Challenger brand launches complement immediacy line-up - Neodent Zi and Anthogyr X3 In the first quarter, the Neodent Zi implant has been launched. This apically tapered ceramic implant ensures that there is no contact between metal and the patient’s tissue. It is a solution that enables to treat patients immediately, thanks to the modern naturally tapered Zirconia implant design. The Zi benefits from a highly innovative production, using injection molding that helps to increase productivity and offer a more affordable solution. Another important launch was the Anthogyr Axiom X3 which is a patented, fully tapered implant designed to offer a universal anchorage in all bone densities. It offers a holistic solution while respecting and preserving the bone, the most valuable environment. By end 2022, Axiom X3 should be fully integrated in all digital workflows. New features to treat more complex orthodontics cases and improve customer experience
ClearCorrect fully launched the ClearPilot 3.0 and 3.1 software which include features that support the treatment of more complex malocclusion cases and enhance the customer experience. The new features offer doctors more control to perform individual tooth movement, the ability to visualize overcorrection, and rate and send feedback on the quality of the setup, improving customer experience. To further support the treatment of more complex cases and to cater for the increasing clinician demand, ClearCorrect began the global launch of cutouts for treatment with elastics and new engager sizes to further customize the treatment to each individual patient need.
Digital solutions accelerating and limited market release of the P50 3D printer started
The full market release of the relaunched VirtuoVivo in the first quarter has been welcomed by practitioners who find the increased usability and connectivity help improve their workflows. In addition, the Rapid Shape P50 3D printer, a high-volume high-intensity device, had a limited market release during the quarter and will get a full market release later in 2022.
Acquisition of stake in CareStack to provide a digital practice management software
Straumann Group acquired a strategic minority stake in software company CareStack. Combining Straumann Group’s clinical solutions with CareStack’s advanced business intelligence and comprehensive practice operations will offer clinicians a seamless, end-to-end treatment management experience. CareStack’s practice management software is suitable for individual practices, groups and DSOs. This partnership will support dental practices in simplifying treatment planning, scheduling, and payment options, thereby helping Straumann Group clients to provide high-quality care in a more efficient way to their patients.
Executive Management Board evolving in line with strategy
Sébastien Roche became Straumann Group’s Chief Operating Officer on April 1st. His role encompasses all Straumann Group production sites involved in implants and biomaterials manufacturing. In addition, Jason Forbes took up the position of Chief Consumer Officer on April 19. He will drive the “Build consumer presence” part of Straumann Group’s strategy, taking on responsibility for Dr Smile, Smilink, Nihon Implant, and direct-to-consumer initiatives.
AGM approves proposals including new Board member, increased dividend and share split
At the recent AGM, the shareholders of Straumann Holding AG approved all the Board’s proposals. This includes the election of independent Board member Nadia Tarolli Schmidt, as well as the approval of the 2022 cash dividend of CHF 6.75 per share (2021: CHF 5.75), which was paid on April 11, 2022. On April 20, Straumann Group’s shares were split in a 1:10 share split, allowing for a broader base of investors to become shareholders.
Sustainability framework in action
To benefit from the knowledge of people most closely connected to Straumann Group, the company set up an internal environmental idea crowdsourcing platform in the first quarter. The goal is to make sure employees can contribute to improving the Group’s environmental footprint. Over 6 weeks employees contributed more than 230 ideas, a high rate of engagement which speaks well for the scheme. These will now be taken forward and assessed by 28 environmental ambassadors, representing each business unit and each region. Straumann Group will set a target date for getting to net-zero carbon emissions.
OUTLOOK 2022 (BARRING UNFORESEEN CIRCUMSTANCES)
Straumann Group confirms the full year guidance despite the uncertainties around potential geopolitical impacts and COVID-19. The Group will seek to anticipate and mitigate supply chain disruption, inflationary and geopolitical developments and their potential impacts. With its strategy and high-performing team in place, organic revenue growth is expected in the low double-digit percentage range and profitability is expected around 26%, including major growth investments.