GOTHENBURG, Sweden, Oct. 23, 2002 (PRIMEZONE) -- Nobel Biocare Holding AG Group, today announced that Nobel Biocare is experiencing an increasing currency-adjusted growth trend. Total sales amounted to SEK 2,075.8 million (11.5% currency- adjusted growth). In Q3 2002, sales amounted to SEK 618.0 million (12.8% currency-adjusted growth).
North America reports an improving growth trend, while the European markets show mixed developments. Japan maintains the strong sales growth.
Operating income before non-recurring items increased by 45.2% to SEK 427.0 million, and Operating income rose by 34.6% to SEK 367.6 million. In Q3 2002, Operating income before non-recurring items increased by 62.1% to SEK 133.9 million.
The profitability improvement program resulted in a significant increase of the EBITA margin, before non-recurring items for Dental Implants, to 27.0% for the first nine months compared to 20.3% in the corresponding period 2001. The EBIT margin before non-recurring items for the Group increased to 20.6% compared to 15.4% in 2001. This positive development has resulted in significant improvements in important key ratios, for example EBIT/employee and Return on Operating Capital.
The new product offering has been successfully introduced at scientific meetings in Europe and the US in September and October. The global commercial launch of the new, streamlined product offer will start on 1 November 2002 as planned.
As part of the new product offering, the product assortment has been totally re-engineered resulting in a reduction from 2,400 to 800 articles at the end of 2003. The new assortment includes more than 380 new articles and 50 significant improvements of current articles.
The outlook for the fourth quarter of 2002 is strong in anticipation of the upcoming product launch in November. The Group expects to exceed the set targets for the full year.
SEK M Jan- Jan-Sept Change Change,
Sept 2001 currency
2002 adjusted
Net sales 2,075.8 1,909.1 +8.7% +11.5%
of which Dental Implants 1,813.0 1,673.3 +8.3% +11.2%
of which Procera(R) 262.8 235.8 +11.5% +13.8%
Operating income before non- 427.0 294.0 +45.2%
recurring items
Operating income (EBIT) 367.6 273.1 +34.6%
Net income 219.5 155.4 +41.2%
Cash flow from current 448.6 419.7 +6.9%
operations
Earnings per share, SEK 8.74(a) 6.14(b) +42.3%
Earnings per share, CHF 1.40(a)
Market value 30 September 10,147 9,300
(a) Average number of Nobel Biocare Holding AG/Nobel Biocare
AB shares.
(b) Average number of Nobel Biocare AB shares.
The Nobel Biocare Holding AG Group
Sales
Group
Total sales increased by 8.7% to SEK 2 075.8 million (11.5% currency adjusted). In the third quarter, sales increased by 3.0% to SEK 618.0 million (12.8% currency adjusted).
Dental Implants
Sales increased by 8.3% to SEK 1 813.0 million, (11.2% currency adjusted). In the third quarter, sales increased by 2.6% to SEK 540.1 million (12.3% currency adjusted).
Dental Implants Regional Sales, January-September
SEK M 2002 2001 Growth in SEK
(in local currency)
Europe 764.6 694.5 10.1% / (9.6%)
North America 690.1 639.3 7.9% / (11.3%)
Asia 210.0 178.8 17.4% / (22.3%)
Rest of the 148.3 160.7 -7.7 % / (5.5 %)
World/Gore
Total 1 813.0 1 673.3 8.3% / (11.2%)
Dental Implant Regional Sales, July-
September
SEK M 2002 2001 Growth in SEK
(in local currency)
Europe 206.6 199.8 3.4% / (5.5%)
North America 213.4 212.9 0.2 % / (13.4%)
Asia 70.8 62.9 12.6% / (23.9%)
Rest of the 49.3 50.9 -3.1% / (20.4%)
World/Gore
Total 540.1 526.5 2.6% / (12.3%)
Nobel Biocare is experiencing an increasing currency-adjusted growth trend, while the nominal growth figures have been significantly affected by the continuously weakening USD.
In total, Dental Implants experienced a steady growth trend in the third quarter. North America reports an improving growth trend, while the European markets show mixed developments. Spain, France, the U.K. and Benelux show steady growth trends whereas sales growth in Germany, Italy and the Nordic countries were impacted by the announcement of the new product assortment and the delays in the administration of the Swedish reimbursement system, respectively. Japan continued to experience strong sales trends.
The implementation of a common sales force and the new integrated concept of Crown-Bridge-Implant to target the general practitioner segment have been accomplished globally.
Third quarter activities were dominated by the introduction of the new product offer. More than 5,000 key customers and dental specialists at the scientific meetings in Brussels, New Orleans and Chicago were thereby exposed to the New Nobel Biocare strategies and products and their response was extremely positive.
The new streamlined product offer comprises at total of 800 products with new manuals and sales support material in eight languages. As part of the new product offer, Nobel Biocare has developed a new implant system, Replace Select Straight, which combines the best documented features of Branemark System implant design and Replace internal connection. The new implant has created huge interest among both current and new customers. The global commercial launch of the new products will start on 1 November 2002 as planned.
The Replace Select system is still growing more rapidly than the market as a whole as a result of its user-friendly and versatile approach, which attracts the growing general practitioner segment of the market.
Sales of Gore membranes are included in the Dental Implant business. The newly-launched bio-resorbable Gore membrane Resolut Adapt is gaining acceptance and sales have started to pick up.
Procera
Sales increased by 11.5% to SEK 262.8 million (13.8% currency adjusted). In the third quarter of 2002, sales increased by 6.1% to SEK 77.9 million (16.4% currency adjusted).
Sales of Procera AllCeram and Procera Scanner experienced steady growth trends and growth in Procera is exceeding market growth for the crown & bridge segment.
Nobel Biocare's standard ceramic components are now being manufactured at the Procera production plants, thereby introducing high-end esthetic prosthetic components for dental implants, such as Esthetic Abutment Ceramic and Ceramic Coping for Easy Abutment.
The strong sales trend for personalized prosthetics and standard ceramics for dental implants confirms that the implementation of the new integrated strategy has been successfully initiated.
Operating results
Group
Operating income before goodwill amortization (EBITA) and non-recurring items increased by 46.6% to SEK 500.5 million (341.5).
Operating income before non-recurring items increased by 45.2% to SEK 427.0 million (294.0). Operating income (EBIT) increased by 34.6% to SEK 367.6 million (273.1). The operating margin (EBIT) increased to 17.7% (14.3%) and the operating margin (EBIT) before non-recurring items increased to 20.6% (15.4%).
Goodwill amortization increased to SEK 73.5 million (47.5) mainly as a result of the Procera Sandvik AB acquisition in December 2001. Depreciation amounted to SEK 72.2 million (62.7).
The profitability improvement program, which was announced in October 2001, with the aim of improving the earnings level has resulted in an EBITA margin before non-recurring items for Dental Implants in excess of plan of 27.0% and an EBIT margin before non-recurring items for the Group of 20.6%. The improvement is evenly distributed between high efficiency in the sourcing process and cost containment throughout the Group.
The gross margin increased to 74.8% for the first nine months compared to 74.5% in the first half of 2002.
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