Shares in Straumann Holding have fallen after the company reported signs of consumer weakness and a lower net profit for the first half of the year due to increased costs.
Second Quarter Revenue Growth
In the second quarter, Straumann's revenue reached 621.3 million Swiss francs ($707.3 million), representing a 5.4% increase compared to the previous year. On an organic basis, revenue grew by 12%. While Straumann's organic revenue rose in all regions, the growth rate slowed in the Europe, Middle East, and Africa region as well as in North America during the second quarter compared to the first.
Expected Patient Flow
Despite isolated instances of consumer weakness, Straumann expects the patient flow seen in the first half of the year to remain dynamic in most geographies.
Focus on Developing Markets
Investors are likely to focus on the weaker trends in developed markets, given that Straumann has noted pockets of consumer softness. Peers in the industry have also started flagging changes in customer behavior, according to Citi analysts Veronika Dubajova and Giang Nguyen.
First Half Net Profit
For the entire first half of the year, Straumann reported a net profit of CHF205.8 million, down from CHF265.4 million in the previous year. The increase in costs offset a 3.3% rise in revenue, which reached CHF1.22 billion.
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