By Alberto Chiumento
(Reuters) -Swiss dental implants maker Straumann on Tuesday reported double-digit percentage growth in its organic revenue for the third quarter, as more people sought dental services around the world, and especially in the Asia-Pacific.
However, its shares fell around 6% by 1003 GMT, as its North American business continued to suffer from slow patient flows and a soft implantology market.
The North American market, Straumann’s second biggest generating around 28% of its sales, reported just 2% growth in the third quarter, compared to analysts’ consensus of 5.3% cited by Jefferies.
Investors had counted on North America not to disappoint, given that 2024 growth has been helped to a great extent by China, a market that has limited visibility for 2025, a London-based trader said.
Asia-Pacific, which makes up around a quarter of Straumann’s sales, recorded the highest year-on-year increase with 19.7% organic growth, mainly driven by the implantology business.
The region recorded double-digit growth also excluding the fast-growing Chinese market, thanks to contributions from markets such as Thailand, India and Malaysia.
Straumann’s overall revenue was 585.5 million Swiss Francs ($676.6 million) in the quarter, in line with market estimates and up 11.2% when excluding currency exchange effects and acquisitions.
Revenue from Europe, Middle East and Africa (EMEA), the group’s biggest market that generates 37% of its sales, rose 11.4%.
Straumann confirmed its full-year guidance for organic revenue growth in a low double-digit percentage range and profitability at 27-28% of sales based on constant 2023 currency rates.
“Reiterated 2024 guidance … implies a marked slowdown in Q4,” Jefferies analysts said in a note to clients.
($1 = 0.8653 Swiss francs)
(Reporting by Alberto Chiumento in Gdansk; editing by Milla Nissi)
