Print

Content - Straumann “extends leadership” in Japan

  • February 20, 2018

Straumann “extends leadership” in Japan

Tokyo (SCCIJ) – In 2017, the Straumann Group from Basel, Switzerland, a global leader in implant, restorative and regenerative dentistry, reported its strongest growth since 2007, as revenue climbed more than one fifth in Swiss francs to CHF 1112 million. Fueled by double-digit increases across all businesses, organic growth rose 16 percent, driven by Asia/Pacific (+24 percent) and North America (+19 percent). Its leadership in Japan was extended, the Straumann Group said, posting double-digit growth there as well as in South Korea and Australia.

Straumann headquarters in Basel

2017 as “landmark year”

The Straumann Group achieved further improvements in profitability despite significant investments in new segments, geographic expansion, R&D, and production capacity. Underlying operating profit rose 26 percent, with the respective margins reaching also 26 percent. Net profit increased 20 percent to CHF 276 million, bringing the corresponding margin to 25 percent and earnings per share to CHF 17.61.  

Marco Gadola, Chief Executive Officer, commented: “2017 was a landmark year. Revenue crossed the CHF 1-billion threshold for the first time, while our operating margin exceeded 25 percent. We launched multiple innovative products, adding value for customers and patients. We increased our scope, reach, technology capabilities and production capacity. We invested in new markets, new subsidiaries and in people around the world.”  

Fastest growth in Asia/Pacific

Asia/Pacific region sales were powered by China and Japan. Revenue climbed 24 percent in organic terms and 25 percent in Swiss francs to CHF 190 million. The growth potential remains high because the number of implants in Japan and China per 10,000 population is clearly below average, offering strong upside potential in the coming years, Straumann said in its annual report for 2017.  

In 2017, Straumann subsidiaries in Japan, the US, Canada and China were inspected by the local authorities. No major observations were identified. The group also passed all Notified Body Audits at its manufacturing and design/development sites. The only Straumann production location in Japan is in Narita where 16 staff work on CADCAM prosthetics for the national market.  

Global team expands

2017 was characterized by intense M&A activity, resulting in multiple strategic transactions. To penetrate the non-premium implant segment further, the group obtained a controlling interest in Medentika. It increased its stake in Dental Wings to 100 percent to accelerate the development of digital platforms and equipment. It entered the field of orthodontics by acquiring ClearCorrect and purchasing a 38 percent stake in Geniova.  

It also acquired a 35 percent stake in Rapid Shape to gain access to 3D-printing technology and it entered a partnership with 3Shape, to distribute high-end intraoral scanners. It increased its stake in Rodo Medical from 12 percent to 30 percent, following US and European approvals for Rodo’s innovative fixation devices.  

In 2017, the group’s global team increased 29 percent to 4881 employees, reflecting acquisitions as well as business and geographic expansion. The incorporation of Equinox, Medentika, Dental Wings and ClearCorrect added 479 employees, while the remainder came through internal expansion, mainly in Brazil, Switzerland and the US, and largely in production.  

Outlook 2018

The group expects the global dental implant market to grow at about 4 percent and is confident that it can continue to expand its market share by achieving organic growth in the low double-digit percentage range. Assuming fairly stable currency exchange rates, the expected organic revenue growth and operational leverage should lead to further improvements in the EBITDA margin in spite of further investments in Sales & Marketing, Research & Development, and Logistics. With the continued high level of investment in production capacity and the amortization of acquisition-related intangibles, the group expects EBIT margin to remain stable.  

About Straumann

The Straumann Group 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.  

In collaboration with leading clinics, institutes and universities, the group researches, develops, manufactures and supplies dental implants, instruments, CADCAM prosthetics, biomaterials and digital solutions for use in tooth replacement and restoration or to prevent tooth loss.      

 

Text: SCCIJ with material of Straumann Group; Photo: Straumann Group

Our Sponsors

Platinum

Gold

Silver

Partner

Footer