ZURICH, Switzerland, April 26, 2007 (PRIME NEWSWIRE) -- Nobel Biocare continues to outgrow the market with high organic revenue growth of +20% in local currencies. EBIT margin continues on a high level of 34%.
* Revenue of EUR 163.5 million; growth in local currencies of 20%.
* Gross margin increased to a record level of 84.2%.
* Operating (EBIT) margin maintained at 34.0%.
* Net profit at EUR 43.9 million, up 18%.
* Basic earnings per share at EUR 1.76.
* Cash Flow from operating activities doubled to EUR 21.0 million.
* 115 new positions added in the first quarter.
* New state-of-the-art European distribution center opened in
Venlo (NL).
* R&D partnership agreement signed with Stockholm University.
* 22% more participants in the training and education programs.
* Confirmation of full-year outlook: Revenue growth of 23-25%
in local currencies and an operating (EBIT) margin of 34-35%.
Table 1.
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Selected Income Statement figures
Jan-Mar Jan-Mar
in EUR million 2007 2006
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Revenue 163.5 142.7
Growth in local currencies 19.7% 26.8%
Growth in (euro) 14.6% 32.1%
Gross profit 137.6 119.5
Gross margin 84.2% 83.7%
Growth 15.1% 35.0%
Profit from operations (EBIT) 55.6 48.5
Operating (EBIT) margin 34.0% 34.0%
Growth 14.6% 39.8%
Profit for the period 43.9 37.2
Profit margin 26.9% 26.1%
Growth 18.0% 43.1%
Basic earnings per share, EUR 1.76 1.48
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Organic revenue growth continued on a high level - strong momentum in Japan and South East Asia
Revenue growth of 20% in local currencies in the first quarter was due to strong performance in most countries, in particular thanks to Asia/Pacific and Rest of the World. This growth was achieved on top of prior year's Q1 growth of 27% (the Group's best quarter growth performance ever) and was once again above the market growth.
In Europe, growth in local currencies in the first quarter increased by 18% with strong performances across the region. Especially positive was the development in Russia and the Baltic States, where the Group went direct last year. Growth in North America was 10% in local currencies, despite the absence of larger marketing initiatives and in anticipation of the upcoming World Conference in Las Vegas (20-24 May) and on the back of two years of continuous strong growth by which Nobel Biocare significantly extended its market share from less than 30% to approximately 35%.
The proximity to the market through its own subsidiaries, as well as the continuous investments and focus, upheld a strong momentum in the Asia/Pacific region and pushed revenue growth to a high level of 45% in local currencies in the first quarter. The manufacturing facility in Japan for individual prosthetics, which will open in the second half of the year, will further strengthen the Group's leading position in this fast-growing region.
Table 2.
---------------------------------------------------------------------- Revenue by region Jan-Mar Jan-Mar Growth in % in EUR M 2007 2006 EUR local curr. ---------------------------------------------------------------------- Europe 79.1 66.8 18.4% 18.3% Proportion of total revenue 48% 47% North America 53.3 52.9 0.8% 10.0% Proportion of total revenue 33% 37% Asia/Pacific 22.1 16.6 33.1% 44.9% Proportion of total revenue 14% 12% Rest of the World 9.0 6.4 40.6% 48.5% Proportion of total revenue 5% 4% ---------------------------------------------------------------------- Total 163.5 142.7 14.6% 19.7% ----------------------------------------------------------------------
Gross margin on record high for the first quarter
The record gross margin for the first quarter of 84.2% (Q1 2006: 83.7%) was driven by strong volume growth and a positive mix change effect due to strong demands for products and solutions launched in the last two years. The gross profit increased to EUR 137.6 million, compared to the prior year's EUR 119.5 million.
The Group uses the benefit coming from the strong revenue and gross profit development to drive and invest into its strategic initiatives to expand the market (which are described further below) and further staff expansion. Profit margin from operations was kept at the record level of 34.0% (profit from operations EUR 55.6 million), despite significantly higher social charges related to the staff option program (EUR 4.6 million in the first quarter, compared with EUR 0.6 million for the same period last year).
Net financial income amounted to EUR 0.6 million for the first quarter (Q1 2006: Net financial expense EUR 1.1 million). Net financial income was positively impacted by foreign exchange gains of EUR 2.2 million.
Profit for the first quarter climbed to EUR 43.9 million compared to EUR 37.2 million last year.
Cash flow from operating activities for the first quarter doubled to EUR 21.0 million (EUR 10.7 million). Inventories decreased slightly to EUR 29.7 million from EUR 30.5 million at year-end 2006.
Cash and cash equivalents (including bank overdraft) increased to EUR 148.1 million from EUR 130.9 million at year-end (and compared to EUR 93.7 million at the end of March 2006).
Strategic initiatives and new esthetic solutions supporting sustainable growth:
Research partnership agreement on dental materials signed with Stockholm University
A new, five-year research partnership was signed 1 February with the internationally renowned Swedish Faculty of Science at Stockholm University. The collaboration focuses on the efforts to promote the study of developing new biocompatible materials and material processes for esthetical dental solutions, particularly in ceramic materials. As part of the agreement, Nobel Biocare will establish a Chair of Materials Innovations at the Department of Physical, Inorganic and Structural Chemistry. The partnership underlines Nobel Biocare's strategic commitment to scientific research and expertise. Overall, Nobel Biocare operates formal collaborations with 60 academic institutes and 600 independent scientists in 28 countries.
New European distribution center established serving the rapidly growing business
The new Nobel Biocare distribution center in Venlo, the Netherlands, became operational on 26 February 2007. The brand new center has been developed to meet the evolving needs of the Company's rapidly growing customer community and will support the future sustainable growth of the company in the greater European region. The facility will use an advanced warehouse management system to improve handling efficiency and quality, to increase response, and reduce costs, simultaneously. Furthermore, the distribution center in Venlo has been designed as a platform to assist with international growth; and is easily scalable to meet increased market demand. The distribution center has already successfully passed the ISO 13485 audit.
Nobel Biocare enhances its line of Easy Esthetics(tm)
The Easy Esthetics(tm) concept provides dental patients with the beauty of Nobel Biocare's complete line of all-ceramic cosmetic and restorative dental prosthetics. Highlights from the launches of new innovative esthetic patient-oriented dental solutions at the Chicago Midwinter Meeting, USA, and IDS (International Dental Show) in Cologne, Germany, included:
Procera(r) Implant Bridge Zirconia and Procera(r) Bridge Zirconia - a full-arch bridge, which is milled from a solid piece of zirconia to ensure defect-free surfaces, excellent fit, and a flexural strength of 1200MPa.
NobelRondo(tm) Press - a versatile porcelain solution that can be pressed onto Procera(r) Abutments, Crowns and Bridges in alumina and zirconia, as well as Procera(r) Laminates in alumina. NobelRondo(tm) Press can also be used in a special technique for individual inlay, onlay, overlay, and veneer applications.
Quick Temp(tm) Abutment Conical - an easy and fast solution for chair-side multi-unit temporary implant restorations.
Platform Shifting - a concept of "stepping down" the size of an implant platform to increase the volume of soft tissue, and blood supply to soft tissue, around the implant platform.
IDS 2007 confirmed Nobel Biocare's industry leading position
The International Dental Show (IDS) in Cologne confirmed the industry trends towards CAD/CAM and cosmetic dentistry. The Nobel Biocare presence with its exhibition of the Procera production and featuring live treatments at the booth, underpinned the Group's leadership and trendsetting position.
Innovative solutions are drawing media attention
In the first quarter 2007, the Group's innovative solution offering resulted in an industry leading with 312 unsolicited editorial articles and features in dental and consumer media (+26% compared to Q1 2006).
22% more participants at the training & education programs
The Company's comprehensive training and education events and programs attracted more than 75,000 participants around the world in the first quarter, an increase of 22% over the last year.
Commitment to quality and the environment proven in third-party assessments
The newly opened European distribution center in Venlo, the Netherlands, and the sales subsidiaries in Switzerland, Belgium, and the Netherlands have successfully passed ISO 13485 audits.
115 positions created in the first quarter 2007
To absorb and sustain the high growth momentum Nobel Biocare added 115 positions in the first quarter. The majority of the new positions were within sales or sales-related departments. At the end of March 2007, Nobel Biocare employed 2,108 employees worldwide.
Outlook
The upcoming World Conference in Las Vegas, 20-24 May, is in the focus of the industry and promises to be the highlight of the year.
The World Conference coupled with the ongoing strategic initiatives and the favorable market trends, barring any unforeseen circumstances, form the base for Nobel Biocare's outlook for the full year 2007:
Revenue growth by 23-25% in local currencies (in a market that is estimated by independent research to grow by 17-18%) and an operating (EBIT) margin of 34-35%.
NOBEL BIOCARE HOLDING AG
Heliane Canepa President & CEO
A telephone conference will be held today 26 April at 15.00 CET.
The dial-in numbers for the telephone conference are:
+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:
Annual General Meeting 2007 26 April 2007 Interim Report 2, 2007 9 August 2007 Interim Report 3, 2007 New date! 30 October 2007
The Full Interim Report 1, 2007 is available in English and Swedish, while a shorter version media release is available in German.
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), NobelReplace(tm), NobelSpeedy(tm), NobelPerfect(r), NobelDirect(r), Replace Select, (dental implants), Procera(r) (individualized dental prosthetics), NobelGuide(tm) (complete patient rehabilitation program) and NobelSmile(tm) (patient education website). 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, patient information and clinically documented treatment concepts. Nobel Biocare has over 2,100 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
www.nobelsmile.com
A link to the full report is available at http://www.newsbox.ch/public/11090/att/11973_interimreportpdf.pdf