Straumann Group (STMN) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue reached CHF 1.3 billion, with 16.1% organic growth and Q2 revenue at CHF 655 million, reflecting strong double-digit growth and market share gains across all regions despite currency headwinds.

• Core EBIT margin was 27.8% (28.9% at constant FX), and core net profit from continuing operations was CHF 282 million, with basic EPS at CHF 1.76.

• The sale of DrSmile to Impress Group, with a 20% minority stake retained, led to restated financials and sharpened focus on B2B orthodontics and digital transformation.

• Innovation and education initiatives included the launch of new digital solutions (UN!Q, SIRIOS scanner, iEXCEL implant system) and the ITI World Symposium in Singapore.

• Executive management changes included new appointments and retirements in key leadership, HR, and technology roles.

Financial highlights

• H1 2024 revenue: CHF 1,273.3 million (up 11.3% in CHF, 16.1% organic year-over-year); Q2 revenue: CHF 655 million.

• Core gross margin: 72.5% (down 180bps year-over-year due to mix and FX); IFRS gross margin: 72.1%.

• Core EBIT margin: 27.8% (up 70bps currency-adjusted, down 120bps year-over-year); IFRS EBIT margin: 26.4%.

• Core net profit: CHF 282 million (22.2% margin); IFRS net profit: CHF 268.2 million (21.1% margin); core basic EPS: CHF 1.76 (up from CHF 1.59).

• Free cash flow: CHF 145 million (11.4% of revenue); cash position at end-June: CHF 334 million.

Outlook and guidance

• 2024 organic revenue growth expected in the low double-digit percentage range, with profitability in the 27–28% range at constant 2023 FX rates.

• Guidance upgrade reflects DrSmile divestiture and better-than-expected core business performance, especially in EMEA and APAC.

• H2 growth expected to decelerate due to tougher comps in China and a higher base effect.

• 2030 ambition for CHF 5 billion revenue reaffirmed, with double-digit growth expected and possible business mix shifts.

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