Straumann confirms 2023 outlook after slight Q1 sales growth

(Reuters) -Swiss dental implant maker Straumann Holding on Wednesday reported organic sales growth of 3.4% for the first quarter, helped by robust demand across most of its markets.

The dental healthcare company confirmed its outlook of organic sales growth in the high-single-digit percentage range in 2023, and profitability at around 25% including growth investments.

"We are confirming our full-year outlook despite the uncertainties around potential economic and geopolitical impacts," CEO Guillaume Daniellot said in a statement.

The company said all geographies performed well in the first quarter, except for China, where the combined impact of COVID-19 lockdowns, lagging patient flows, and the Chinese Volume-Based Procurement (VBP) pricing hampered growth.

A tender programme for healthcare products aimed at lowering costs for consumers, China's VBP has driven average selling prices to a much lower level.

Sales plunged 23.5% in Asia-Pacific (APAC), including China, Straumann's key market in the region. Excluding China, APAC delivered a "solid performance", the company added.

The company, which specialises in tooth replacement and orthodontic solutions, reported revenue of 596 million Swiss francs ($668.84 million) in the three months to the end of March, compared with 588.9 million francs a year ago.

($1 = 0.8911 Swiss francs)

(Reporting by Andrey Sychev and Anna Mackenzie in Gdansk; Editing by Christian Schmollinger and Rashmi Aich)