COLTENE is optimistic for the future despite a challenging financial year 2023

COLTENE Holding AG / Key word(s): Preliminary Results COLTENE is optimistic for the future despite a challenging financial year 2023 18-Jan-2024 / 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 Holding AG, a leading international developer and manufacturer of dental consumables and small equipment, publishes key figures for the financial year 2023. Net sales are expected to amount to CHF 242.6 million. The operating result is anticipated to close with a margin of approximately 8%. Dominik Arnold took over the position of CEO of the COLTENE Group on 1 January 2024.

Compared to the previous financial year COLTENE recorded a decline in sales to CHF 242.6 million (2023: CHF 267.1 million). Major contributors to this development included foreign exchange effects against the euro, the US dollar, and the Canadian dollar. They reduced sales by 4.6%. The economic development led to a lower demand for devices and a slight decline in patient volume. In addition, the high level of interest rates led to a further significant reduction in inventories at dealers at the end of the year, particularly in North America, which was not expected to this extent. 

The lower sales volume had a negative impact on the operating margin. In addition, the gross margin was put under further pressure due to a one-time change in the product mix. Despite stringent cost control measures, the company expects an EBIT margin of around 8% for 2023. Free cash flow (FCF), on the other hand, improved significantly to around CHF 17.5 million thanks to an optimized net working capital.

Considering the strategic projects that have been initiated, further cost streamlining and solid demand for patient treatments COLTENE is confident about the 2024 financial year. However, economic developments remain volatile. Detailed information on the course of business and the outlook for 2024 will be published with the annual report 2023 on 8 March 2024.