EQS Group-Ad-hoc: COLTENE Holding AG / Key word(s): Annual Results
For full-year 2020, the COLTENE Group reports net sales of CHF 248.4 million (previous year: CHF 273.8 million). In local currency terms, sales were down 4.1% and in Swiss franc terms, by 9.3%. The significant 35.5% increase in Infection Control sales was unable to fully compensate for the revenue lost in Dental Preservation and Efficient Treatment. While COLTENE Group sales accelerated in Switzerland and North America, the temporary closing of dental practices slowed down demand in many other markets. Operating profit (EBIT) before a one-time non-cash charge from the disposal of the Brazilian subsidiary was CHF 32.1 million (2019: CHF 32.0 million). Net profit before the one-time charge was CHF 19.9 million (2019: CHF 20.0 million). EBIT reported for 2020 was CHF 23.3 million, with net profit at CHF 8.2 million. At 48.1%, the equity ratio remained on a par with the previous year (48.0%) while net debt fell by 40.6% from CHF 36.8 million to CHF 21.9 million. Free cash flow more than doubled from CHF 10.7 million a year earlier to CHF 24.3 million (+127%).
At the Annual General Meeting on March 31, 2021, the Board of Directors will propose a distribution of CHF 3.00 (2019: CHF 1.50) per share from capital contribution reserves for shareholder approval. For natural persons residing in Switzerland, this distribution is tax exempt.
The COLTENE Group has enjoyed a healthy start to 2021 even as business performance remains exposed to significant risks due to the COVID-19 pandemic. The Group serves the dental market and is benefiting from brisk demand for Infection Control products in particular, which have become far more important as a result of the pandemic. These products make dental practices safer and allow for dependable disinfection and compliance with the required hygiene standards. COLTENE plans to sustain the above-average innovation-led growth achieved in this strategic product group. With the anticipated gradual return of business activity to pre-pandemic levels, COLTENE expects demand to pick up also in Dental Preservation and Efficient Treatment.
The new EU Medical Device Regulation (MDR) comes into force in May 2021. COLTENE attained first MDR certification already in 2020, demonstrating the high quality standards of its products and processes.
Integrated and Focused
The COLTENE Group's Marketing and Sales teams maintained close customer contact despite the restrictions imposed by the pandemic. In support of these efforts, COLTENE expanded its electronic communication capabilities.
In 2020, all of Kenda's production was relocated and integrated in the existing facility and organization in Altstätten. On December 17, 2020, the sale of Brazilian subsidiary Vigodent was announced, and the transaction was completed by year-end 2020.
Impact of the Global COVID-19 Pandemic
Change in Group Management
Thanks to the cost reduction measures taken in 2020, the cost base is significantly lower than at the start of 2020. The Group affirms its medium-term targets of a 15% EBIT margin and sales growth modestly above the market. For 2021, Group Management expects demand to recover to 2019 levels in Dental Preservation and Efficient Treatment.
Martin Schaufelberger, COLTENE Group CEO, says: "The COLTENE Group is well positioned to meet challenges such as the fierce competitive market, accelerating digital business transformation, and new regulatory changes."
Media and Analyst Conference
To download the presentation documents, visit www.coltene.com.
Annual General Meeting
Annual Report 2020
End of ad hoc announcement
|Company:||COLTENE Holding AG|
|Listed:||SIX Swiss Exchange|
|EQS News ID:||1173354|
|End of Announcement||EQS Group News Service|
1173354 05-March-2021 CET/CEST