STRAUMANN: Bought and already +21% in profit!

The Basel-based dental implant specialist STRAUMANN has published its business figures for 1H24 and 2Q24. Expectations were exceeded, in some cases significantly! Sales climbed by +11.3% to CHF 1.27 billion in the first half of the year, with organic growth even amounting to +16.1%. EBIT rose from CHF 296.6 million to CHF 336.1 million and net profit increased from CHF 206 million to CHF 268.2 million. Only in terms of sales did the Basel-based company fail to exceed expectations. For the full year 2024, the company now expects organic sales growth in the low double-digit percentage range at constant exchange rates (previously single-digit) and a margin of around 27% to 28% (previously around 26%). STRAUMANN is also selling its DrSmile business to the Impress Group. The figures for 2Q24 confirm that STRAUMANN can continue to achieve double-digit growth! Sales increased by almost +15%; the Asia-Pacific region in particular grew strongly and generated a third more revenue. Business in North America continues to be "sluggish" (+5.3%), which is attributable to restrained demand from customers who are holding off on expensive dental operations or are foregoing aesthetic tooth corrections with dental splints.

The sale of DrSmile, after four unsuccessful years, is seen as a wise decision and should give the remaining business a boost. Since its foundation in 2019, the new owner, the Impress Group, has become the leading provider of transparent aligners in Europe and operates a network of clinics in various countries. The Impress Group is also likely to be the better owner for DrSmile and integrate the business unit into its structures in a promising way. In return, STRAUMANN will receive 20% of the Impress Group's business and will participate in the company's future success. If the price target of CHF 136.50 is reached, we would realize the profit immediately (valid until 30.09.24)!