Dental implants maker Straumann sees steady sales growth in 2024

(Reuters) – Swiss dental implant maker Straumann on Tuesday forecast 2024 sales growth at a similar level to last year’s, 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 group, which specialises in tooth replacement and orthodontic solutions, expects its organic revenue to grow in a high single-digit percentage this year, while the margin on earnings before interest and taxes should be 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.

For last year, Straumann reported 9.8% organic revenue growth 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 strong Swiss franc against U.S. dollar hit Straumann which makes most of its earnings outside of Switzerland.

During the fourth quarter, the group’s 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 and by 5.8% in Europe, Middle East and Africa (EMEA).

While North American results were subdued due to consumer weakness, Europe showed steady patient flow growth, the company said.

Straumann will propose an increased dividend of 0.85 francs per share for 2023, versus 0.8 francs last year.

($1 = 0.8796 Swiss francs)

(Reporting by Andrey Sychev and Marleen Kaesebier in Gdansk; editing by Milla Nissi)