Earnings Release • Aug 8, 2024
Earnings Release
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Ad hoc announcement pursuant to Art. 53 LR
Ad hoc announcement pursuant to Art. 53 KR
Altstätten, 8 August 2024
COLTENE Holding AG, a leading international developer and manufacturer of dental consumables and small equipment, is on track by building on the strong prior-year semester in the first half of 2024. Inventory and order levels in North America have normalized. With the launch of the tooth whitening product BRILLIANT Lumina, COLTENE is gaining access to new customers in the aesthetics sector. In the first half of the year, COLTENE initiated a strategy process for the years 2025 to 2027.
The first half of 2024 is progressing as expected
COLTENE generated net sales of CHF 127.5 million in the first half of 2024 (H1 2023: CHF 131.4 million). Adjusted for currency effects, sales were -0.7% and thus continued its strong performance from the first half of the previous year. In the reporting currency, sales fell by 3.0%. In addition to the negative exchange rate effects, macroeconomic factors had an increasing impact on demand in the dental market as a whole. The rise in the cost of living led to treatments being postponed as patients became more cautious about their spending. Investments in new equipment were also postponed. The gross margin rose from 65.4% in the previous period to 66.6%. At the same time, investments in future growth were made at an operational level, in particular increased marketing measures and the launch of Lumina. The operating result (EBIT) thus reached CHF 13.0 million (H1 2023: CHF 14.4 million). The EBIT margin was 10.2% compared to 11.0% in the first half of the previous year. Net profit amounted to CHF 10.4 million, which corresponds to an increase of 3.9% compared to the prior-year period. Net working capital was further optimized, enabling COLTENE to once again generate a strong free cash flow of CHF 13.8 million (H1 2023: CHF 16.7 million).
Growth in Dental Preservation
Currency-adjusted sales of Infection Control were exactly at the previous year's level (-2.8% in CHF) despite the lower market growth and although this business benefited from the reduction in delivery backlogs in the prior half-year. The surface disinfection products were the driving force. Dental Preservation grew, with an increase of 1.3% in local currencies (-0.9% in CHF), in particular thanks to the endodontics area. In addition, the order situation normalized following a previously sharp reduction in stock levels at dealers. In Efficient Treatment, the reduction in stock levels among dealers also normalized. However, supply bottlenecks for one product had a negative impact here. Adjusted for currency effects, sales fell by 2.7% (-4.8% in CHF).
North America increases share of sales
North America increased sales by 2.4% in local currencies, driven by good growth in endodontics and thus achieved a sales share of 48.5% (H1 2023: 47.2%) despite the high prior-year base. The EMEA region (Europe, Middle East and Africa) accounted for 34.6% of sales (H1 2023: 35.4%), with sales in local currencies declining by 4.0%. The region was still slightly affected by the destocking of individual retailers. The impact of the Lumina launch in June was not material for the company’s first-half year performance yet. Adjusted for currency effects, Asia achieved sales at the previous year's level and contributed 10.9% (previous year: 11.1%) to total sales. Sales in Latin America were affected by delivery delays and fell by 6.7% on a currency-adjusted basis. This should have a positive effect in the second half of the year.
Launch of Lumina and strategy process 2025-2027
The introduction of the Lumina tooth whitening product provides COLTENE with access to new customers and bolsters its position in the increasingly important aesthetics market. Lumina distinctly differentiates itself from existing, hydrogen peroxide-based products. It is gentler on the tooth substance and painless to use. Lumina will be gradually introduced in Europe and is an excellent addition to the existing product portfolio.
The strategy process for the financial years 2025-2027 was also initiated during the first half of 2024. The results will be presented at the Capital Markets Day on 30 October 2024. On the personnel side, dental expert Di Hu joined the management of the COLTENE Group as Vice President Sales and Marketing Europe & RoW in the first half of the year.
Outlook for the second half of the year
COLTENE is confident about the second half of the 2024 financial year. The end of destocking at retailers and the improved situation in terms of interest rates and inflation are positive for the market as a whole. COLTENE will also benefit from product launches such as Lumina and the digitalization projects. For the 2024 financial year, COLTENE expects an increase in sales of 3-5% compared to the previous year at constant exchange rates. At an operational level, COLTENE will intensify its go-to-market strategy. Finally, COLTENE is equipped for inorganic growth thanks to its solid balance sheet.
COLTENE is maintaining its medium-term targets of organic sales growth above the market and an EBIT margin of 15%.
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Half-Year Report 2024
The Half-Year Report 2024 of COLTENE Holding AG is available at invest.coltene.com/financial-publications/business-reports/ .
| Key figures (in CHF 1 000) | H1 2024 | H1 2023 | % change |
| Net sales | 127 502 | 131 431 | -3.0% |
| Operating expenses | -68 541 | -68 070 | 0.7% |
| Operating profit (EBIT) | 12 977 | 14 426 | -10.0% |
| as % of net sales | 10.2% | 11.0% | |
| Net profit | 10 417 | 10 022 | 3.9% |
| Operating cash flow | 16 471 | 20 580 | -20.0% |
| Investments (net) | -2 697 | -3 858 | -30.1% |
| Free cash flow | 13 774 | 16 722 | -17.6% |
| Key figures (in CHF 1 000) | 30.6.24 | 30.6.23 | % change |
| Net debt | -24 141 | -26 559 | -9.1% |
| Total assets | 189 759 | 187 103 | 1.4% |
| Shareholder’s equity | 99 990 | 100 789 | -0.8% |
| as % of total assets | 52.7% | 53.9% | |
| Number of employees (FTE) | 1 191 | 1 206 | -1.2% |
| Financial Calendar | |
| Capital Markets Day | 30 October 2024 |
| Release of Annual Report 2024 and Media and analyst conference on the 2024 financial year |
7 March 2025 |
| Annual General Meeting 2025 | 23 April 2025 |
| Release Half-Year Report 2025 and Media and analyst conference on the 2025 half-year results |
8 August 2025 |
| Contact Investor Relations |
| Markus Abderhalden, CFO Phone +41 71 757 54 80 Mobile +41 79 436 26 22 E-Mail [email protected] |
| Address |
| COLTENE Holding AG Feldwiesenstrasse 20 9450 Altstätten, Switzerland P + 41 71 757 53 00 [email protected] www.coltene.com |
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About COLTENE
COLTENE is an international developer, manufacturer, and seller of dental consumables and small equipment in the areas of Infection Control, Dental Preservation, and Efficient Treatment. COLTENE has state-of-the-art production facilities in the USA, Canada, Germany, France, and Switzerland as well as own sales organizations in all major markets including Europe, North and Latin America, Japan, China, and India. Dentists, DSOs, dental clinics, and dental labs all around the globe trust COLTENE's high-quality products. The registered shares of COLTENE Holding AG (CLTN) are listed on SIX Swiss Exchange. Learn more about COLTENE and our products at www.coltene.com .
This written statement and oral statements or other statements made, or to be made, by us contain forward-looking statements that do not relate solely to historical or current facts. These forward-looking statements are based on the current plans and expectations of our management and are subject to a number of uncertainties and risks that could significantly affect our current plans and expectations, as well as future results of operations and financial conditions. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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