Straumann Earnings: Solid Results, Buoyed by Wins in China and Latin America, Reflect Resilience

Narrow-moat Straumann reported third-quarter earnings that were largely in line with our expectations, and we maintain our fair value estimate of CHF 94 per share. Total sales grew 3.7% year over year (11% on constant currency) thanks to strong performance from Asia-Pacific and Latin America with some offsets from unfavorable foreign exchange. During the quarter, Straumann pre-launched iExcel, a new premium implant system designed to combine apically- and fully-tapered implants with both bone- and tissue-level options. We think this bolsters the firm’s already strong position in the premium implant market, improves its positioning in a fast-growing adjacent area, and substantiates its narrow moat. The system should launch first in North America during early 2024 with rollouts in Europe during the second half of the year.