Straumann Group (STMN) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue reached CHF 1.3 billion, up 16.1% organically, with Q2 revenue at CHF 655 million and all regions contributing, led by Asia Pacific.

• DrSmile business was divested to Impress Group, with a 20% minority stake retained and financials restated to reflect continuing operations.

• Strong performance in implantology, digital solutions, and B2B orthodontics, with innovation and education as strategic pillars, highlighted by the ITI World Symposium.

• Executive management changes included new appointments and retirements in key leadership, with intensified focus on digital transformation.

Financial highlights

• H1 2024 revenue: CHF 1,273–1,300 million (up 16.1% organic, 11.3% in CHF); Q2 revenue: CHF 654.9–655 million.

• Core EBIT margin reached 27.8% (up 70 bps YoY, currency-adjusted), with core EBIT at CHF 354 million.

• Gross profit was CHF 918–923 million (72.1–72.5% margin), with core net profit at CHF 282 million (22.2% margin), and core basic EPS at CHF 1.76.

• Free cash flow stood at CHF 145 million (11.4% of revenue), with capital expenditure at CHF 84 million.

• Currency headwinds negatively impacted margins by 100–190 bps.

Outlook and guidance

• 2024 outlook updated to low double-digit organic revenue growth and 27–28% profitability at constant 2023 FX rates.

• Guidance reflects the DrSmile divestiture and stronger-than-expected core business performance, especially in EMEA and Asia Pacific.

• Continued investment in B2B orthodontics and digital transformation to drive future growth.

• Global patient flow anticipated to remain stable despite economic uncertainty.