August 14, 2019 / 5:00 AM / 4 months ago

Dental supplier Straumann ups revenue targets after second-quarter beat

FILE PHOTO: A logo is pictured on a box of equipment made by dental healthcare company Straumann in Lausanne, Switzerland, March 10, 2017. REUTERS/Denis Balibouse

(Reuters) - Swiss dental implant maker Straumann (STMN.S) raised its full-year revenue targets after reporting a better-than-expected second quarter on Wednesday, citing the launch of its BLX implant in Europe, geographic expansions and double-digit growth in all regions.

The Basel-based manufacturer said it now expected its 2019 revenue to rise in low-to-mid-teen percentage, compared to a previous guidance for growth in low-teens percentage.

After Straumann’s first-quarter revenue beat in April, the management had said it would look at the second-quarter performance before deciding on a possible 2019 revenue target increase.

Straumann reported second-quarter revenue at 407.8 million Swiss francs, compared with 405 million francs in a Refinitiv poll.

“With regard to profitability, we have benefited from strong volume increases, a higher-margin product mix and a one-time benefit related to the adoption of IFRS 16,” Chief Executive Marco Gadola said.

As a result, Straumann’s earnings before interest and taxes (EBIT) and net profit increased despite currency obstacles and investment costs, and this trend should continue in 2019, Gadola added.

The company has said the trade war between the United States and China and uncertainty over the terms of Britain’s departure from the European Union warrants caution. But, it is counting on strong growth in China and the rest of Asia-Pacific and emerging markets such as Turkey and Russia.

Straumann reported revenue growth of 19% in 2018, its fastest in 13 years. Its shares have risen 28.5% so far this year, outperforming the Swiss midcap index .SMIM, which rose 19.8%.

Reporting by Zuzanna Szymanska in Gdynia; editing by Uttaresh.V

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