Straumann maintains modest 2022 outlook despite strong sales, shares slip
© Reuters. FILE PHOTO: The logo of dental implant manufacturer Straumann Group is seen at its headquarters in Basel, Switzerland March 2, 2020. REUTERS/Arnd Wiegmann/File Photo

By Marie Mannes

(Reuters) – Swiss dental implants maker Straumann maintained its moderate 2022 outlook on Tuesday despite strong first-half sales driven by high demand, sending its shares tumbling as much as 10% in afternoon trading.

“Straumann is often conservative, but we believe there had been some hope from bulls for an upgrade” to the year’s forecast, J.P.Morgan said in a note, adding the outlook implied a sharp slowdown in the latter half of the year.

The company, which specialises in tooth replacement and orthodontic solutions, sees full-year organic sales growth in the low-double-digit percentage rage, against 21% growth in the first six months.

CEO Guillaume Daniellot said the group had chosen not to raise the outlook amid macroeconomic factors such as inflation and possible new COVID-19 outbreaks that could limit growth.

Dental care providers, which last year benefited from increased demand for specialty treatments as practices reopened after lockdows, now face new risks as soaring inflation hampers consumer spending.

Straumann said it had seen some inflation effects on patient flows in North America towards the end of the period, while those of Europe and Latin America remained healthy.

Daniellot said it was important to wait for Europeans to return to work in September following summer breaks to see how inflation and high energy prices would affect consumer behaviour in the region.

He also said the COVID-19 situation in China remained a concern, as the country represents more than half of Straumann’s overall business in the Asia Pacific region.

The risk of new outbreaks during the colder winter months added uncertainty, he said.

Straumann’s reported first-half revenue of 1.2 billion Swiss francs ($1.3 billion), and said its manufacturing had been running at full capacity to meet higher demand and to manage challenges due to delays in the delivery of machinery.

It said finance chief Peter Hackel would leave the company by January 2023 to pursue career opportunities elsewhere, and that the company was searching for a replacement.

Shares were down 9.7% at 118.05 Swiss francs in afternoon trading.

($1 = 0.9466 Swiss francs)

Leave a Reply

Your email address will not be published. Required fields are marked *

New Brokers
2.8 rating
Buy & sell Crypto in minutes
3.0 rating
Note: Investing involves risks. You can lose your deposit. We advise you to only invest in financial products which match your knowledge and experience.
2.0 rating
Interactive Brokers attracts active traders with low per-share pricing, an advanced trading platform.
4.3 rating
eToro is the world’s leading social trading platform, with thousands of options for traders and investors.
Risk Warning: The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory or other services by AdonFinance. In addition, the content of the website offers no opinion with respect to the suitability of any security or any specific investment. Trading foreign exchange, stocks, cryptocurrencies and commodities is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against traders. Before any investment with any broker you need to carefully consider your targets, previous experience, and risk level. Forex trading can result in the loss of your money, as a result, you are expressly cautioned that you should never invest or trade with money that you cannot afford to lose. For the avoidance of doubt, AdonFinance's service provides Brokers reviews in the Financial market. AdonFinance, its subsidiaries, agents or affiliates will assume no responsibility whatsoever for your trading activity. © Copyright 2021 AdonFinance