H1 2023 result outperforms prior year at constant exchange rates

COLTENE Holding AG / Key word(s): Half Year Results H1 2023 result outperforms prior year at constant exchange rates 04-Aug-2023 / 06:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. COLTENE, a leading international developer and manufacturer of dental consumables and small equipment, achieved a pleasing business performance in the first half (H1) of 2023 despite a challenging business environment. Net sales were up 1.7% year-on-year, at constant exchange rates, outperforming the strong result of the same period a year earlier. The business performance reflects our success in clearing delivery backlogs on our side, but also the reduction of inventories at our distribution partners and – in particular – highly negative exchange rate effects. Against this background, sales declined in Dental Preservation and Efficient Treatment but saw an impressive increase in Infection Control. Half-year result heavily impacted by exchange rates Exchange-rate movements had a significant impact on the half-year result, especially the currencies Euro (EUR), US dollar (USD) and Canadian dollar (CAD). In CHF terms, accordingly, the COLTENE Group posted H1 2023 net sales of CHF 131.4 million, down 2.6% year-on-year. In local-currency terms, by contrast, net sales were up 1.7%, a pleasing increase considering the strong performance in the same period a year earlier (CHF 134.9 million). Operating profit (EBIT) was CHF 14.4 million (H1 2022: CHF 16.7 million) and the EBIT margin was 11.0% (H1 2022: 12.4%). Net profit was CHF 10.0 million (H1 2022: CHF 12.1 million). Free cash flow received a sharp lift from optimized net working capital, ending the half year at CHF 16.7 million (H1 2022: CHF 7.8 million). This was supported in part by the scaling back of stockpiling activities as supply chain constraints eased generally.