Henry Schein (HSIC) Goldman Sachs 45th Annual Global Healthcare Conference summary

Dental market trends and performance

• Early 2024 saw a slow start due to lingering effects from a cyber incident, adverse weather, and high flu rates, but recovery began in February and stabilized through April and May.

• Patient traffic is stable, with about 90% of practices operating at capacity, limiting immediate growth potential.

• Market expansion is expected as more dental schools open and new dentists enter the field over the next few years.

• Unemployment rates are a key macro factor; low unemployment supports dental care access and consumables demand.

• Interest rates impact equipment financing and high-cost procedures, with targeted promotions helping offset higher rates.

International market dynamics

• Germany remains strong in implants with mid-single-digit growth and some growth in equipment servicing, while other segments are flat.

• Australia faces headwinds as post-pandemic incentives expire and rising interest rates squeeze disposable income.

Equipment and service trends

• Standard equipment demand surged post-pandemic due to pent-up demand and practice expansions, now leveling off to mid-single-digit growth.

• Service plans are being marketed more, with new app-based tools enabling rapid technician response and improved customer retention.

• Practice formation is expected to grow as more dentists graduate, especially within DSOs, supporting future equipment and merchandise demand.