Excluding the effects of currencies and acquisitions (mainly DrSmile in 2021 and 2020).
Basel, October 28, 2021: Straumann Group revenue reached CHF 496 million in the third quarter of 2021, leading to CHF 1.5 billion in the first nine months of the year. This represents strong growth compared to the same quarter of the previous year, when COVID-19 measures started to ease and dental practices returned to operations. The patient flow remains strong and consumer spending on specialty dental treatments continued during the third quarter.
Guillaume Daniellot, Chief Executive Officer, commented: 'This is another quarter that shows the importance of our high-performance culture. I'm very proud to see how our teams have achieved this strong result. Highlights include efforts that are driving our digital transformation, winning important dental service organization partners, and fully launching our tissue level immediacy implant TLX. Overall, we further supported the development of our existing customers and also gained market share. Patient flow remained strong, which indicates that oral health has gained higher priority for personal spending during the pandemic period. Based on the assumption that this trend in oral health spending remains as it is, we raise our expectation for full-year organic revenue growth to a high-thirties percentage range, with profitability at least at the 2019 level.'
All regions continued to report high sales growth in the third quarter of 2021. EMEA and North America contributed CHF 204 million and CHF 149 million to Group revenue, with organic growth increases of 32% and 27% respectively. LATAM (63%) and Asia Pacific (29%) grew strongly, contributing CHF 143 million to overall Group revenue.
STRATEGIC PROGRESS IN THE Third quarter
Digital Transformation strengthened
The dental environment continues to be transformed through digital innovation. The Straumann Group aims to be at the forefront of providing an exceptional customer experience for dental workflows in orthodontics and implantology.
In October, the Group became a founding partner of 3Shape Unite, a new open platform that provides simple and highly efficient access to services and solutions for clinicians and laboratories. The platform will be seamlessly integrated with the Group's broad range of offerings including 'Smile in a Box', a full-service offering for implant treatments, as well as ClearCorrect clear aligners. Later this year, the platform will be accessible to the entire TRIOS user base, including clinicians who are not yet working with the Group.
Investment in mininavident to further develop a dynamic surgical navigation system
Dynamic surgical navigation is the next step in the digitalization of dental surgery. By acquiring a 39% stake in mininavident, the Group will partner with this Swiss company to further develop its technology with the aim of providing a best-in-class platform for guided surgery.
New partnership with Aspen Dental Management, Inc.
In recent years, the Group has established itself as a strong business partner for dental service organizations (DSOs). A consultative approach with a focus on providing education and training, combined with an end-to-end portfolio of solutions and services, has led to new partnerships with DSOs. In the third quarter, the Group entered a partnership with Aspen Dental Management, Inc. This partnership also includes ClearChoice Dental Implant Centers, which has been acquired by Aspen. Aspen operates more than 930 locations across 45 states in the US, while ClearChoice operates 71 locations in 28 states. Together, Aspen and ClearChoice form the largest provider of fixed and removable dental prosthetics in the United States.
TLX premium immediacy tissue level implant now fully launched
Following the successful limited market release in January, the Straumann TLX implant was fully launched at the ITI World Symposium in September. It combines the company's tissue level concept with the BLX fully tapered design, which is Straumann's most advanced technology for immediate treatments. The implant's tissue level collar is designed to preserve peri-implant health. The implant body has been developed for optimal primary stability and immediate protocols in all bone types.
Plans to invest around CHF 18 million in a new Straumann Group Technology and Innovation Center in Arlesheim near Basel, Switzerland
In addition to its headquarters in Basel, the Group plans to build a new Technology and Innovation Center in the Basel region to support its growth strategy and ensure short time-to-market for new innovations and fast responses to changing customer needs. The new site will unite expert teams from different locations in the region and will strengthen the Group's technology and innovation forces in implantology and orthodontics. The center will host research and development, global supply chain, logistics and warehousing activities. In addition, the Swiss sales affiliate and commercial laboratory will be located at the site.
The new center will create additional working space in a state-of-the-art facility to foster interdisciplinary cooperation and customer interaction. It will include a training area and an interactive showroom for customers. Construction will start at the beginning of 2022 and the new facility will become operational in the first half of 2023.
REGIONAL PERFORMANCE IN THE THIRd quarter
EMEA shows strong growth and gains further market share driven by challenger brands unlocking new market segments
The EMEA region remains the Group's largest revenue contributor and reported CHF 204 million in the third quarter of 2021, with strong revenue growth of 32% compared to 2020. Growth was driven by sales of premium implants and by challenger brands unlocking new market segments. This included Neodent and Anthogyr, which continued to gather momentum. The orthodontics business is expanding, with DrSmile and ClearCorrect accelerating growth. The overall result in the region was driven by Germany, France and Turkey.
North America returns to strong growth compared to last year's third quarter
In 2020, the business in North America began to pick up again during the third quarter, after lockdown restrictions were eased in June. In the third quarter of 2021, by comparison, the North America region showed strong growth of 27% and reached revenue of CHF 149 million. This growth was supported by overall market share gains due to immediacy solutions and the accelerated growth of the Neodent brand, which has doubled its size in the last 24 months, as well as digital solutions such as intraoral scanners. The strong growth of the Straumann and Neodent brands was also driven by established and new partnerships with dental service organizations.
Although a comparatively smaller market, the Canadian business is growing very fast, and the Group is continuing to increase market penetration with its challenger brands and digital solutions.
Asia Pacific region continues to grow
In the third quarter of 2021, the Asia Pacific region achieved revenue of CHF 105 million, an organic sales growth of 29% compared to the same period in 2020. Patient flow in most countries is strong. Due to the ongoing pandemic-related restrictions, travel opportunities are still limited. This leads to higher disposable income that local consumers can spend on oral health. China, Japan and Australia are driving growth in this region, with strong contributions from premium implants and digital solutions. The Group introduced biomaterials in China for the first time in October, while also launching Anthogyr in South Korea and announcing a direct presence in Malaysia.
Latin America growth supported by good patient flow and market share gains
Performance in Latin America during the third quarter of 2021 was significantly better than in the same quarter of 2020, which heavily suffered from the pandemic as Latin America was affected later than other regions. Revenue increased by 63% to CHF 38 million. Patient flow is good and the Group continues to gain market share in this region. This trend is being led by Brazil, which is the Group's largest revenue contributor in Latin America, followed by Mexico and Chile. While presently representing a comparatively small part of the overall revenue in the region, the orthodontics business is expanding very rapidly. Neodent remains the Group's strongest brand in Latin America, while the premium implant brands and digital solutions are performing very well, with the Virtuo Vivo intraoral scanner successfully established.
OUTLOOK 2021 RAISED (BARRING UNFORESEEN CIRCUMSTANCES)
Dental practices were operating with healthy patient flows throughout the first nine months of 2021. The Group's offerings of innovative solutions and strong execution drove growth in the third quarter and led to continued market share gains. Pandemic-related restrictions have impacted consumer behavior by limiting spending alternatives such as traveling, leaving some consumers with more disposable income to spend on specialty dental treatments. This trend can be expected to gradually soften as spending opportunities will further open up. Consequently, the Group raises its guidance to full-year organic revenue growth in the high-thirties percentage range, with profitability at least at the 2019 level.
About Straumann Group
The Straumann Group (SIX: STMN) is a global leader in tooth replacement and orthodontic solutions that restore smiles and confidence. It unites global and international brands that stand for excellence, innovation and quality in replacement, corrective and digital dentistry, including Anthogyr, ClearCorrect, Dental Wings, Medentika, Neodent, NUVO, Straumann and other fully/partly owned companies and partners. In collaboration with leading clinics, institutes and universities, the Group researches, develops, manufactures and supplies dental implants, instruments, CADCAM prosthetics, orthodontic aligners, biomaterials and digital solutions for use in tooth correction, replacement and restoration or to prevent tooth loss.
Headquartered in Basel, Switzerland, the Group currently employs more than 8000 people worldwide. Its products, solutions and services are available in more than 100 countries through a broad network of distribution subsidiaries and partners.
Straumann Holding AG, Peter Merian-Weg 12, 4002 Basel, Switzerland
Phone: +41 (0)61 965 11 11
ANALYSTS' AND MEDIA CONFERENCE CALL
Straumann will present its 2021 third-quarter results to representatives of the financial community and media in a webcast telephone conference call today at 10.30 am Swiss time.
The webcast can be accessed via www.straumann-group.com/webcast. A replay of the webcast will be available after the conference.
If you intend to ask a question during the Q&A, we kindly ask you to pre-register for the conference call through this link 'Conference call' . We also recommend that you download the presentation file in advance using the direct link in this media release before joining the conference call.
The conference presentation slides are attached to this release and available on the Media and Investors pages at www.straumann-group.com.
UPCOMING CORPORATE / INVESTOR EVENTS
This release contains certain forward-looking statements that reflect the current views of management. Such statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Straumann Group to differ materially from those expressed or implied in this release. The Group is providing the information in this release as of this date and does not undertake any obligation to update any statements contained in it as a result of new information, future events or otherwise.