ZURICH, Switzerland, Feb. 8, 2007 (PRIME NEWSWIRE) --
-- Revenue of EUR 600.6 million.
-- Revenue growth in local currencies of 24.4%.
-- Gross margin at new high of 84.0%.
-- Operating profit before depreciation and amortization (EBITDA)
jumped 26%, lifting EBITDA margin to 36.6%.
-- Operating (EBIT) margin up to 34.0%.
-- Net profit increased to EUR 158.1 million.
-- Basic earnings per share of EUR 6.34.
-- Cash Flow from operating activities increased 67% to a record
of EUR 160.3 million
-- Board of Directors proposes to raise dividend by 21% to CHF 4.25
or approx. EUR 2.70 per share.
-- Outlook for 2007: revenue growth of 23-25% in local currencies
at an operating (EBIT) margin of 34-35%.
Table 1.
----------------------------------------------------------------------
Selected income Oct Oct Growth Jan Jan Growth
statement figures -Dec -Dec -Dec -Dec
in EUR million 2006 2005 2006 2005
---------------------------------------------------------------------
Revenue 171.6 144.4 18.8% 600.6 484.5 24.0%
Growth in local
currencies 22.8% 20.3% 24.4% 24.0%
Gross profit 145.5 117.5 23.8% 504.8 398.5 26.7%
Gross margin 84.8% 81.4% 84.0% 82.3%
Profit from
operations (EBIT) 62.2 55.7 11.7% 204.2 162.3 25.8%
Operating (EBIT)
margin 36.2% 38.6% 34.0% 33.5%
Profit for the
year* 46.4 43.5 6.7% 154.2 124.1 24.3%
Profit margin* 27.0% 30.1% 25.7% 25.6%
Basic earnings per
share*, EUR 1.89 1.72 6.18 4.86
Basic earnings per
share, EUR 1.89 1.71 6.34 6.05
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* excluding sale of associate
Market outpaced in all regions
The strong momentum of revenue growth continued also in the fourth quarter across all regions with overall revenue growth of 22.8% in local currencies. This was the 11th consecutive quarter with revenue growth of 20% or more -- in a market that is estimated to grow at 17-18%.
In Europe, growth in local currencies in the fourth quarter was up by 24.5%, led by a record growth in the largest market Germany (+46.5%), the Netherlands, Austria, Finland, Spain and Russia. North America grew by 19.6% in local currencies in the fourth quarter from a record base of 36.4% in the same period last year. Growth in Asia/Pacific continued on a high level at 25% in local currencies in the fourth quarter.
Revenue for the full year increased to a record 24.4% in local currencies to EUR 600.6 million, above the Company's outlook of 24%. The fast acceptance of solutions launched in 2005 and the continued high activity level in the market place enabled Nobel Biocare to continue its high growth momentum. The Company achieved strong growth across all regions strengthening its leadership position both globally as well as regionally.
Table 2. --------------------------------------------------------------------- Revenue by region - Oct Oct Growth in % 4th quarter -Dec -Dec local in EUR million 2006 2005* EUR curr. --------------------------------------------------------------------- Europe 80.5 64.6 24.6% 24.5% Proportion of total revenue 47% 45% North America 61.4 54.5 12.7% 19.6% Proportion of total revenue 36% 38% Asia/Pacific 20.3 17.5 16.0% 25.0% Proportion of total revenue 12% 12% Rest of the World 9.4 7.8 20.5% 25.7% Proportion of total revenue 5% 5% --------------------------------------------------------------------- Total 171.6 144.4 18.8% 22.8% --------------------------------------------------------------------- * Comparatives were reclassified to conform with the current period's presentation, see Note 8. Table 3. --------------------------------------------------------------------- Revenue by region - Jan Jan Growth in % Full year -Dec -Dec local in EUR million 2006 2005* EUR curr. --------------------------------------------------------------------- Europe 266.6 218.5 22.0% 22.0% Proportion of total revenue 44% 46% North America 222.1 180.1 23.3% 23.3% Proportion of total revenue 38% 37% Asia/Pacific 79.4 60.1 32.1% 37.6% Proportion of total revenue 13% 12% Rest of the World 32.5 25.8 26.0% 24.1% Proportion of total revenue 5% 5% --------------------------------------------------------------------- Total 600.6 484.5 24.0% 24.4% --------------------------------------------------------------------- * Comparatives were reclassified to conform with the current period's presentation, see Note 8.
Record gross margin for fourth quarter and full year
Strong volume growth, on the back of a positive mix change drove the gross margin for the fourth quarter to another new record high of 84.8% (Q4 2005: 81.4%). The gross margin for the full year rose sharply to 84.0% from 82.3%. The respective gross profit increased to EUR 504.8 million, compared to the prior year's EUR 398.5 million. The positive mix change is driven by the good reception of the products launched during the 2005 world conference.
The gross profit increase enabled the Company to significantly upgrade its investments in strategic initiatives, such as educational and research partnerships with universities, the NobelSmile consumer awareness and patient education campaign, the Nobel Biocare World Tour 2006 training and education conferences, and further staff expansion while still increasing the profit from operations by 26% from EUR 162.3 million in 2005 to EUR 204.2 million. The operating margin for the full year improved, in line with the Company's outlook, to 34.0% (33.5%).
Social charges related to the staff option program amounted to EUR 4.2 million for the full year, compared with EUR 6.5 million for the previous year.
Net financial expenses amounted to EUR 5.3 million (EUR 4.5 million) for the full year. Financial expenses were negatively impacted by foreign exchange losses of EUR 3.6 million (EUR 3.9 million).
Profit for the period (Q4) climbed to EUR 46.4 million compared to EUR 43.5 million last year. The profit for the year, excluding the one-time effect from the divestiture of Entific Medical Systems AB, climbed to EUR 154.2 million compared to EUR 124.1 million.
Return on Equity grew from 42% in 2005 to 47% in 2006.
Cash flow from operating activities for the full year rose to EUR 160.3 million (EUR 107.8 million). Inventories climbed slightly to EUR 30.5 million from EUR 30.1 million at year-end 2005. Current receivables increased from EUR 126.6 million to EUR 141.0 million at the end of the year. Additionally, EUR 131.5 million were used to buy back shares.
To sustain growth and further increase efficiency Nobel Biocare invested in its infrastructure. Investments in manufacturing plants (amounting to EUR 11.8 million), leasehold improvements and equipment for office expansions to accommodate additional employees (EUR 3.4 million), as well as upgrades to training facilities raised the investment in tangible and intangible assets from EUR 25.0 million to EUR 28.0 million.
Cash and cash equivalents increased to EUR 132.3 million from EUR 129.0 million.
Dividend of CHF 4.25 per share proposed to the Annual General Meeting The Board of Directors proposes a dividend of CHF 4.25 (EUR (2.70) per share to the Annual General Meeting. (AGM). The AGM is scheduled for 26 April 2007 in Zurich, Switzerland.
Setting the foundation for sustainable growth:
Serving the worlds largest populations
In 2006, Nobel Biocare continued its expansion into emerging markets by establishing new subsidiaries in China and Russia, as well as the three Baltic States - Lithuania, Estonia and Latvia. Nobel Biocare has now its own direct sales organizations in 34 countries.
18 university collaborations for creation of undergraduate programs and research
In 2006, Nobel Biocare continued to actively seek to change current undergraduate education in dental schools in order to integrate dental implantology and esthetic dentistry. By the end of 2006, 18 partnership contracts had been signed with, among others, the two largest dental schools in the US, the largest school in Australia, the five largest schools in China, and the highest-rated dental school in Germany. These partnerships form part of the Company's strategy to ensure that the newest treatment solutions for implants and ceramic restoration are included in the undergraduate dental programs at universities. The majority of the new collaborations also include clinical and basic research support.
17 successful Nobel Biocare World Tour education conferences in 15 countries
Nobel Biocare held its final four World Tour conferences in the fourth quarter of 2006: Germany, Italy, Canada and Spain. These brought the total number of conferences for the year to 17. World Tour highlights included: 620 dental professional speakers, 125 live surgeries and 250 hands-on and focus sessions. Approximately one-third of the participants were non-Nobel Biocare customers. The World Tour also attracted considerable media and national TV coverage thanks to the many patient treatment seminars.
For the full year, the Company's comprehensive training and education events and programs attracted more than 335,000 participants around the world, a 33 percent increase on 2005 and a 500 percent increase on 2002.
NobelSmile consumer awareness and education campaign generated high media response
The main strategic goal of the NobelSmile campaign is to inform consumers of the latest solutions for restorative and esthetic dentistry, which dentists and dental laboratories offer today. Dissemination of information was accomplished through a patient education website (currently available in 34 countries in 20 languages), information and support material, advertisements and features in health and lifestyle media, plus the World Tour. The website received 250,000 visits and the overall campaign resulted in over 580 consumer press articles.
Providing choices to dental professionals and patients
Pursuing the strategy of providing treatment choices to dental professionals and patients, Nobel Biocare enhanced its broad spectrum of products by introducing 289 new products in 2006. A majority of the introductions focused on Procera(r) solutions for individualized metal-free, long-lasting esthetics.
First Bone-Inductive Implant in human clinical trial
A milestone was reached in 2006 in the development of the first bone-inductive implant, an implant designed to make its own bone. After the FDA approved the first pilot clinical investigation, the first four patients were treated in the fourth quarter of 2006.
Commitment to quality and the environment proven in third-party assessments
In 2006, the Company passed 25 third-party quality and environmental assessments with excellence, of which 7 without any nonconformity at all and, the remaining with only minor non-conformities..
345 positions created in 2006
To absorb and sustain the high growth momentum Nobel Biocare added 67 positions in the fourth quarter. This brought the total of new positions to 345 for the full year 2006. The majority of the new positions were within sales or sales-related departments. At the end of 2006, Nobel Biocare employed 1,993 employees worldwide.
Outlook
The underlying factors such as favorable demographics, lifestyle and esthetic trends as well as the low penetration form the basis for an attractive growth outlook for the high esthetic tooth replacement market.
In 2007, Nobel Biocare aims to continue its capitalization by way of its ongoing strategic initiatives. The World Conference in Las Vegas from 20-24 May 2007 promises to be the highlight of the year; the Company is confident that this will be the dental industry's most educational and personalized forum setting a new benchmark in the industry. Nobel Biocare anticipates up to 10,000 attendees who will experience more than 30 broadcast live surgery treatments, over 120 hands-on workshops and focus sessions and a multitude of one-on-one peer case discussions.
The Company's continued strong performance in 2006 sets a high base for the current year; barring unforeseen circumstances, Nobel Biocare expects to grow revenue in 2007 by 23-25% in local currencies (in a market that is estimated to grow by 17-18%), and achieve an operating (EBIT) margin of 34-35%.
NOBEL BIOCARE HOLDING AG Rolf Soiron Heliane Canepa Chairman of the Board President & CEO Further information is available from: Media: Nicolas Weidmann, Vice President Communications Tel: +41 43 211 42 80, +41 79 372 29 81 e-mail: nicolas.weidmann@nobelbiocare.com Investor Relations Suha Demokan, Head of Investor Relations +41 43 211 42 30, +41 79 430 81 46 suha.demokan@nobelbiocare.com
An investor and analyst conference in English will be held today 8 February 2007 at 13.00 CET.
Location: ConventionPoint at SWX Swiss Exchange, Selnaustrasse 30, Zurich. The conference can be assessed (listen-only mode) via Webcast at www.nobelbiocare.com or via telephone conference, using the following dial in numbers:
+41 91 610 5600 (in Europe) +44 20 7107 0611 (in the UK) +46 8 5069 2105 (in Sweden) +1 866 291 4166 (toll free number in the USA)
For more details and additional dial-in numbers, see our homepage: www.nobelbiocare.com.
Financial Reporting Calendar:
Interim Report 1, 2007 26 April 2007 Annual General Meeting 2007 26 April 2007 Interim Report 2, 2007 9 August 2007 Interim Report 3, 2007 25 October 2007
The Full Year Report 2006 is available in English and Swedish, while a shorter version media release is available in German.
A preprint version of the Annual Report 2006 can be obtained in PDF format from investor.relations@nobelbiocare.com.
Disclaimer:
This interim report contains forward-looking statements that are subject to various risk and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing.
Nobel Biocare is a medical devices group and the world leader in innovative esthetic dental solutions with its brands Branemark System(r), NobelSpeedy(tm), NobelReplace(tm), NobelPerfect(r), NobelDirect(r), Replace(r) Select, (dental implants) and Procera(r) (individualized dental prosthetics). Nobel Biocare is a one-stop shop for restorative esthetic dentistry, offering a wide range of innovative Crown & Bridge & Implant products, as well as training and education and clinically documented treatment concepts. Nobel Biocare has 1,993 employees and recorded revenue of EUR 601 million in 2006. The Company is domiciled in Zurich, Switzerland with headquarters in Zurich and in Gothenburg, Sweden. Production takes place at four production sites located in Sweden and the USA. Nobel Biocare has direct sales organizations in 34 countries. The shares of the parent company Nobel Biocare Holding AG are listed on the SWX Swiss Exchange and on the Stockholm Stock Exchange, Sweden.
www.nobelbiocare.com
SELECTED FINANCIAL INFORMATION
Oct Oct Jan Jan
-Dec -Dec -Dec -Dec
in EUR million 2006 2005 2006 2005
---------------------------------------------------------------------
Income statement
Revenue 171.6 144.4 600.6 484.5
Gross profit 145.5 117.5 504.8 398.5
Profit from operations
(EBIT) 62.2 55.7 204.2 162.3
Profit before tax 60.5 55.9 202.8 188.4
Profit for the period
w/o sale of associate 46.4 43.5 154.2 124.1
Profit for the period 46.4 43.5 158.1 154.7
Balance sheet
Non-current assets 198.1 194.3
Current assets 306.0 321.4
Total equity 360.8 357.7
Non-current liabilities 28.5 28.9
Current liabilities 114.8 129.1
Total assets 504.1 515.7
Cash and cash
equivalents incl.
bank overdraft 130.9 128.4
Miscellaneous
Net cash from operating
activities 65.5 38.1 160.3 107.8
Depreciation,
amortization and
impairment losses 4.9 3.4 15.6 12.8
Investments in property,
plant and equipment and
intangible assets 8.8 10.4 28.0 25.0
Employees at end of
period 1,993 1,648
Ratios
Revenue growth (%) 18.8 24.3 24.0 24.8
Revenue growth in local
currencies (%) 22.8 20.3 24.4 24.0
Gross margin (%) 84.8 81.4 84.0 82.3
Operating expenses in %
of revenue 48.5 42.8 50.0 48.8
Operating (EBIT) margin (%) 36.2 38.6 34.0 33.5
Profit margin (%) w/o
sale of associate 27.0 30.1 25.7 25.6
Profit margin (%) 27.0 30.1 26.3 31.9
Return on equity (%) 47.0 42.4
Equity/assets ratio (%) 72 69 72 69
Share information
Number of shares at end
of period 26,299,225 25,954,883
Average number of shares 24,957,950 25,540,905
Number of shares after
full conversion 26,617,318 26,617,318
Share price at end of
period, CHF 360.25 289.00
Market value at end of
period, MCHF 9,474 7,501
Basic earnings per share
w/o sale of associate,
EUR 6.18 4.86
Basic earnings per
share, EUR 6.34 6.05
Diluted earnings per
share, EUR 6.29 5.97
Equity per share, EUR 14.46 14.00
Equity per share after
full conversion, EUR 13.56 13.44