COLTENE Gruppe: Dental markets recovering – Focus on high-growth segments and geographical regions Donnerstag, 17. Dezember 2020 - 07:00
Media Release
Altstätten, December 17, 2020
Dental markets recovering – Focus on high-growth segments and geographical regions
The COLTENE Group has benefited from a rapid recovery in dental markets. Sales volumes and earnings exceed expectations in the second half of the year. With the integration of the SciCan Group, the company sharpened its profile and geographical orientation. The Brazilian production site Vigodent will be sold.
Dental markets worldwide are rebounding faster than initially expected. Infection Control sales are up significantly, year-on-year, boosted by ever tighter hygiene and disinfection requirements for dental practices. Since August, demand has also developed more dynamically than expected. The improved capacity utilization has a positive effect on earnings.
After reviewing its product portfolio in recent months, the COLTENE Group has decided to discontinue non-strategic products that are low-volume and have low EBIT margins. Due to the economic situation in Brazil, the Board of Directors and Management have decided to sell their Brazilian subsidiary Vigodent to local entrepreneurs. All necessary steps have been taken to complete the sale in the current fiscal year. The sale will result in a one-time non-cash charge in the amount of approximately CHF 12 million. The net effects of these measures will reduce future COLTENE Group sales by about CHF 7.0 million but will have a positive impact on the operational margin. In the future, COLTENE will distribute its products directly through major dental distributors in Brazil.
After demand plummeted in the second quarter due to the COVID-19 pandemic, dental markets have recorded positive growth since the summer months. This encouraging trend is sustained in the fourth quarter currently underway. COLTENE was swift to respond to the coronavirus crisis and reduced operating costs through a range of countermeasures. For the current year, Group Management expects sales in the range of CHF 235 million to CHF 240 million and EBIT of CHF 28 million to CHF 30 million before one-time effects. Due to the COVID-19 pandemic, business performance continues to be exposed to significant risks.
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Financial Calendar
Media and analyst conference on 2020 financial year, release of Annual Report 2020 | March 5, 2021 |
Annual General Meeting 2021 | March 31, 2021 |
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For further information: Gerhard Mahrle, CFO,
phone +41 71 757 54 37, mobile +41 79 346 23 02, e-mail gerhard.mahrle@coltene.com
About COLTENE
COLTENE is an internationally active developer, manufacturer and seller of dental consumables and small equipment in the areas of Infection Control, Dental Preservation and Efficient Treatment. COLTENE has state-of-the-art production facilities in the USA, Canada, Germany, France and Switzerland as well as own distribution organizations in all major markets including Europe, North and Latin America, China and India. Dentists and dental labs all around the globe trust COLTENE’s high-quality products. The registered shares of COLTENE Holding AG (CLTN) are listed on SIX Swiss Exchange. Learn more about COLTENE and our products at www.coltene.com.
Contact information
COLTENE Holding AG
Feldwiesenstrasse 20
9450 Altstätten, Switzerland
P + 41 71 757 53 00
This written statement and oral statements or other statements made, or to be made, by us contain forward-looking statements that do not relate solely to historical or current facts. These forward-looking statements are based on the current plans and expectations of our management and are subject to a number of uncertainties and risks that could significantly affect our current plans and expectations, as well as future results of operations and financial condition. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
