(in CHF million)
A stable gross margin was achieved by changing the product mix and successfully passing on higher input prices to the market.
With a vast product portfolio, we cover demand for the three workflows Endodontics, Restoration, and Infection Control.
Already, the new customer service software has led to 385 service interactions being handled via the system each month.
The order backlog for Infection Control devices has grown by a month, reflecting supply chain constraints but also strong market demand.
The COLTENE Group saw orders rise in the first half (H1) of 2022. The strong demand continued trending from the previous year. Unfortunately, COLTENE has not escaped the global supply chain bottlenecks and so was unable to derive full benefit from the high levels of demand in H1 2022. Group net sales were CHF 134.9 million, down 5.9% from H1 2021 (CHF 143.5 million). This corresponds to a 5.3% drop in sales, year-on-year, in local currency terms. Excluding the supply chain constraints, H1 2022 sales would be in line with the exceptionally strong prior-year performance. Operating profit (EBIT) for H1 2022 was CHF 16.7 million (H1 2021: CHF 26.0 million). The EBIT margin was 12.4% (H1 2021: 18.1%; H2 2021: 13.2%). Net profit was CHF 12.1 million (H1 2021: CHF 18.2 million). When comparing H1 sales year-on-year, it is appropriate to bear in mind that the H1 2021 results were exceptionally strong. That period was defined by pandemic-related catch-up effects in Infection Control.
Shipping delays of electronic and other components required flexible employee work schedules in H1 2022. COLTENE has not been affected by shortages of qualified personnel except in a few limited areas, and was well positioned in H1 2022 to successfully meet the more demanding requirements of flexible production runs. During H1 2022 and also in anticipation of demand in the months ahead, COLTENE has been stockpiling selected components. Even so, there were shipping delays with certain product categories, notably electronic components for Infection Control devices.
Global supply chain constraints also impact COLTENE.
In light of this, sales in Infection Control declined by 19.3%. In Efficient Treatment, by contrast, sales were up 3.1%. Dental Restoration sales were virtually unchanged from a year earlier. COLTENE was able to raise prices to pass on higher costs with a slight time lag.
Begun in 2021, new training infrastructure for customers and key opinion leaders in the USA was completed and inaugurated in H1 2022. These investments enable customer-centric classroom-based instruction and hands-on training onsite. In addition, the investments made in harmonizing the customer relationship management (CRM) system are paying dividends. The system enables efficient management of customer requests across regions while also promoting internal transparency using key metrics. Ultimately, these investments in training infrastructure and CRM help sharpen our customer focus and heighten the impact of our Marketing and Sales teams.
The outlook for full-year 2022 remains positive.
The outlook for full-year 2022 remains positive. COLTENE expects the supply chain bottlenecks to be eased in H2 2022 and H2 sales and profit to outperform both H1 2022 and H2 2021. At constant exchange rates, COLTENE expects full-year 2022 sales in line with 2021 figures and an EBIT margin trending toward the medium-term target of 15%. The outlook for full-year 2022 is clouded by uncertainties on account of the current state of the global economy.
On behalf of the Board of Directors and Group Executive Management, we would like to thank all our employees for their hard work and their great flexibility in making our quality products. We also wish to thank our business partners and shareholders for the confidence they place in the COLTENE Group.
Chairman of the Board of Directors
Release of Half-year Report and media and analyst conference on 2022 half-year results
Release of Annual Report and media and analyst conference on 2022 financial year
Annual General Meeting 2023
Release of Half-year Report and media and analyst conference on 2023 half-year results