DENTSPLY SIRONA (XRAY) 7 Nov 24 2024 Q3 Earnings call transcript

In Dentsply Sirona's Q3 2024 earnings call, the company discussed its performance, strategic initiatives, and market dynamics, highlighting both challenges and opportunities in the dental industry. The call was led by CEO Simon Campion, who provided an update on the company's financial performance, regulatory review of Byte Aligners and Impression Kits, and strategic plans for the future.

Financial Performance and Market Challenges

Dentsply Sirona reported a revenue of $951 million, with organic sales up 1.3%, driven by EDS sales and the launch of Primescan 2 in CAD/CAM. However, the company also faced challenges in its implants and equipment business, with a double-digit decline in Byte and reduced conversion rates for its aligners. The company attributed these challenges to market pressures and the ongoing regulatory review of Byte.

Regulatory Review and Strategic Options for Byte

The voluntary suspension of Byte Aligners and Impression Kits sales is a significant development, with the company evaluating strategic options including discontinuation of the business. The decision is data-driven, taking into account regulatory requirements, recent performance, and longer-term prospects. The outcome will impact the company's overall financial health and growth prospects.

Innovation and Strategic Operating Update

Dentsply Sirona continues to focus on innovation, particularly in its digital dentistry solutions like Primescan 2. The company aims to drive adoption through better connectivity and integration with DS Core, which is expected to provide customers more flexibility and efficiency. The company is also investing in its SureSmile orthodontic software and expanding its Connected Technology Solutions.

Outlook and Future Plans

The company revised its full-year 2024 outlook, acknowledging the impact of market pressures on U.S. equipment and Byte. Despite these challenges, Dentsply Sirona remains optimistic about its growth prospects, driven by innovation and strategic investments in its digital ecosystem. The company is also focused on reducing costs and optimizing its portfolio, with plans to eliminate nonrevenue-generating SKUs and migrate revenue-generating SKUs to digital platforms.

Conclusion

Dentsply Sirona's Q3 2024 earnings call underscored the challenges and opportunities in the dental industry, with a focus on innovation, cost savings, and strategic positioning. The regulatory review of Byte Aligners and Impression Kits, coupled with market pressures, presents both risks and opportunities for the company. As Dentsply Sirona navigates these challenges, its strategic initiatives and focus on digital dentistry solutions position it well for future growth.