Annual / Quarterly Financial Statement • Mar 8, 2024
Annual / Quarterly Financial Statement
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Ad hoc announcement pursuant to Art. 53 LR
Ad hoc announcement pursuant to Art. 53 KR
Altstätten, 8 March 2024
COLTENE Holding AG, a leading international developer and manufacturer of dental consumables and small equipment, reached sales of CHF 242.7 million (2022: CHF 267.1 million). The decline of 9.1% compared to the previous year includes negative currency effects of 4.5%. As a result of the decline in sales, combined with a temporary change in the product mix, the EBIT margin reached 8.1% (previous year: 13.1%) despite lower operating costs. Net profit amounted to CHF 11.9 million (2022: CHF 26.0 million).
The equity ratio amounted to 55.2% (previous year: 58.9%). Free cash flow increased by 14.4% to CHF 17.4 million thanks to optimizations in the net working capital, while net debt amounted to CHF 26.6 million (previous year: CHF 22.8 million). The Board of Directors proposes a dividend of CHF 2.00 per share from capital contribution reserves at the Annual General Meeting on 17 April 2024 (previous year: CHF 3.30). This is a one-time deviation from the usual payout ratio of 70% to reflect the fact that the negative impact on the 2023 profit was primarily temporary. The dividend is tax-free for natural persons resident in Switzerland.
Currency effects had a major impact on the sales trend due to the appreciation of the Swiss franc. In local currency, the decline in sales amounted to 4.6%. This is mainly attributable to North America, where large dealers significantly reduced their inventories at the end of the year. The economic environment with high interest rates in the same market also slowed demand for dental equipment. This also led to a slight decline in patient visits at dentists.
In contrast, currency-adjusted sales in EMEA were closer to the previous year's level. Asia and Latin America performed very well. In local currency terms, they were up on the previous year. North America continued to account for the largest share of sales with 46.2%, followed by EMEA with 36.9%. The shares of Asia and Latin America amounted to 10.9% and 6.0% respectively in 2023. Efficient Treatment and Dental Preservation were mostly affected by the reduction in inventories at the dealers. Sales decreased by 5.6% and 6.4% respectively in local currency (-9.3% and -10.4% in CHF). By contrast, sales of Infection Control fell only slightly by 1.9% in local currency and 7.8% in Swiss francs.
Change of the Chairman of the Board of Directors
After more than 15 years as Chairman of the Board of Directors, Nick Hubert has decided not to stand for re-election at the 2025 Annual General Meeting. Nick Huber has played a key role in shaping the development of COLTENE. The Board of Directors would like to thank him for his great commitment. Matthias Altendorf, who has been a member of the COLTENE Board of Directors since 2023, is expected to succeed him in spring 2025. As already reported, Martin Schaufelberger will also be proposed to the shareholders for election to the Board of Directors at the 2025 Annual General Meeting.
For the upcoming Annual General Meeting on 17 April 2024, Roland Weiger has decided to step down from the Board of Directors. Edgar Schönbächler will be proposed to the shareholders for election as an independent member of the Board of Directors in his place. Edgar Schönbächler was CEO of Bien-Air Dental for many years and has extensive industry and management experience in the dental and medical technology industry.
Dominik Arnold took over the position as CEO of COLTENE from Martin Schaufelberger on 1 January 2024. Dominik Arnold is a long-standing medtech CEO with extensive experience.
In Group Management, Christophe Loretan has resigned from his position as VP Sales & Marketing Europe/RoW. The search for his successor is in progress.
Outlook – better business performance expected
COLTENE is cautiously optimistic for the 2024 financial year and expects business performance to improve. In the past year, certain factors were exceptional and non-recurring. They will no longer have a negative impact on the 2024 financial year. These include the destocking at dealers in North America. Likewise, a normalized product mix will contribute positively to the profitability and finally, promising development projects are expected to provide positive momentum.
COLTENE is maintaining its medium-term targets of an EBIT margin of 15% and organic sales growth above the market. The payout ratio for future dividends remains at a target of around 70%.
***
Media and analyst conference / Webcast
Today Friday 8 March 2024, 10:00 a.m. CET, Haus zum Rüden, Limmatquai 42, 8001 Zurich,
reception starts at 9:30 a.m. To download the presentation documents, visit www.coltene.com .
Annual General Meeting 2024
The Annual General Meeting of COLTENE Holding AG will be held on Wednesday, 17 April 2024, at 4:00 p.m. CET at Hotel-Restaurant Sonne, Kugelgasse 2, in 9450 Altstätten. Doors open at 3.30 p.m. CET. Directions to the venue and the detailed invitation to the Annual General Meeting are available for download at www.coltene.com .
Annual Report 2023
COLTENE Holding AG’s Annual Report 2023 was published today and can be downloaded at www.coltene.com .
| Key figures (in CHF 1 000) | 2023 | 2022 | % change |
| Net sales | 242 729 | 267 125 | -9.1% |
| Operating expenses | 129 477 | 136 650 | -5.2% |
| Operating profit (EBIT) | 19 608 | 34 911 | -43.8% |
| as % of net sales | 8.1% | 13.1% | |
| Net profit | 11 947 | 25 999 | -54.0% |
| Operating cash flow | 25 976 | 23 421 | 10.9% |
| Investments (net) | 8 561 | 8 197 | 4.4% |
| Free cash flow | 17 415 | 15 224 | 14.4% |
| Key figures (in CHF 1 000) | 31.12.23 | 31.12.22 | % change |
| Net debt | -26 640 | - 22 848 | 16.6% |
| Total assets | 175 422 | 190 597 | -8.0% |
| Shareholder’s equity | 96 874 | 112 184 | -13.6% |
| in % of total assets | 55.2% | 58.9% | |
| Distribution per share in CHF | 2.00 1) | 3.30 | -39.4% |
| Dividend payout ratio | 100% | 76% | |
| Number of employees (FTE) | 1 183 | 1 221 | -3.1% |
1 Board of Director’s proposal to the Annual General Meeting 2024 (distribution from
capital contribution reserves)
Contact
For further information: Markus Abderhalden, CFO,
Phone +41 71 757 54 80, Mobile +41 79 436 26 22, E-Mail [email protected]
Sign up for email updates from COLTENE Holding AG at www.coltene.com .
| Financial Calendar | |
| Annual General Meeting 2024 | 17 April 2024 |
| Release of Half-Year Report and Media and analyst conference on 2024 half-year results |
8 August 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 of Half-Year Report and Media and analyst conference on 2025 half-year results |
8 August 2025 |
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 .
**Contact
**Coltene Holding AG
Feldwiesenstrasse 20
9450 Altstätten, Switzerland
P + 41 71 757 53 00
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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