Straumann revenues hit by European downturn

Straumann revenues hit by European downturn
Straumann, the world's largest maker of dental implants, has reported profits last year of CHF 36.4 million against CHF 58 million forecast. North America was the key revenue driver, complemented by double-digit growth in China and Latin America. ‘Unfortunately’, the company said ‘these solid performances were not enough to compensate for sluggish sales in Europe, Japan and the Middle East’.

Economic deterioration, austerity and high unemployment, especially in southern Europe, dampened consumer confidence, reducing traffic at dental practices and leading patients to delay treatment or take cheaper, inferior options. Large markets like Spain and Italy, which are fragmented and highly permeated by cut-price competitors, suffered the biggest declines as the gap widened between markets in depressed economies and those in more prosperous areas.

European revenues dipped 5% to CHF 378 million, corresponding to 55% of the Group total. The currency effect was negative but amounted to just 1 percentage point, helped by the minimum Euro exchange rate set by the Swiss National Bank.

Gilbert Achermann, Chairman & Acting CEO, commented: “We continued to grow our business in North America, and other key growth markets like China and Brazil, but their strong performances were not enough to offset shortfalls in our main region, Europe.”

The full report can be read by clicking here.


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