Further market decline in Japan in Q3 is materially impacting revenue and profit outlook for full year 2012
Revenue development in the third quarter continued to be in line with the market. Excluding Japan, revenue was flat (-0.1% at CER) for the quarter and modestly down 0.6% at CER year-to-date.
As communicated earlier, adverse media reporting on implant treatments has impacted patient flow in Japan. This has led to a further deterioration of the market in the course of the third quarter. Nobel Biocare has a leading market share in Japan, which represents about 13% of its revenue and contributes disproportionately high profit. The development is difficult to predict at this point in time but the company does not anticipate any improvement in the coming months.
APAC excluding Japan was up 15.8% (CER) for the quarter and 7.4% (CER) year-to-date. In EMEA revenue development was consistent with the previous quarters and in line with the market, as also in North America, where the market continued to soften.
The company will continue with its strategic investments in innovation and selling. At the same time Nobel Biocare will maintain its high cost-consciousness and drive efficiencies throughout the business. These investments are important to further build Nobel Biocare and accelerate growth in the mid-term.
Nobel Biocare foresees development of revenue for the full year in line with the market, which is anticipated to decline modestly. Based on this and barring any unforeseen events, in particular a further deterioration in Japan, Nobel Biocare expects revenue for the full year to decline in the modest single-digit percentage range at CER. The EBIT for the full year is expected to be about EUR 67 to 70 million (as reported) as a consequence of the revenue shortfall in Japan.
This media release contains forward-looking statements based on beliefs of Nobel Biocare's management. When used in this media release, words such as "anticipate", "believe", "estimate", "expect", "intend", "plan" and "project" are intended to identify forward-looking statements. They may involve risks and uncertainties, including technological advances in the medical field, product demand and market acceptance, the effect of economic conditions, the impact of competitive products and pricing, foreign currency exchange rates and other risks. These forward-looking statements reflect the views of Nobel Biocare as of the date made with respect to future events and are subject to risks and uncertainties. All of these forward-looking statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results or experience could differ materially from the forward-looking statements. Nobel Biocare disclaims any intention or obligation to update these forward-looking statements.
Financial reporting calendar:
Interim Report 3, 2012 - 8 November 2012
Full Year Report 2012 - 19 February 2013
Annual General Meeting - 28 March 2013
Interim Report 1, 2013 - 25 April 2013
Interim Report 2, 2013 - 22 August 2013
Interim Report 3, 2013 - 7 November 2013
NOBEL BIOCARE MANAGEMENT AG
Nobel Biocare (NOBN, SIX Swiss Exchange) is a world leader in innovative restorative and esthetic dental solutions. As a complete solutions provider, Nobel Biocare offers the most comprehensive range of solutions from tooth to root, for single tooth to fully edentulous indications. The solutions portfolio covers dental implants (including the key brands NobelActive(TM) , Brånemark System® and NobelReplace®, individualized prosthetics and equipment (NobelProcera(TM) guided surgery solutions and biomaterials). Nobel Biocare has approximately 2'500 employees and recorded revenue of EUR 569.2 million in 2011. The company is headquartered in Zurich, Switzerland. Production takes place at seven sites located in Canada, Israel, Japan, Sweden, and the US. Nobel Biocare has 34 direct sales organizations.