Q1 2024 Envista Holdings Corp Earnings Call Transcript
Key Points
- Envista Holdings Corp (NVST) achieved a core sales growth of 0.4% in Q1 2024.
- The orthodontic business, particularly Spark clear aligners, saw over 15% growth, outperforming the market with robust progress in North America, Europe, and emerging markets.
- Strong growth in China offset weaker market demand in Western Europe for the implant business, showcasing significant market potential in emerging regions.
- Envista Holdings Corp (NVST) introduced new leadership with Paul Keel, aiming to leverage his extensive experience to drive future growth and operational improvements.
- Continuous improvement actions have significantly reduced production costs per aligner in the Spark business, contributing to long-term profitability improvements.
- Envista Holdings Corp (NVST) reported a slight decrease in reported sales compared to Q1 2023, with only a modest core sales growth of 0.4%.
- Adjusted EBITDA margin declined to 14%, a decrease of 420 basis points from Q1 2023, driven by unfavorable product mix and significant investments in strategic areas.
- The implant business in North America underperformed due to commercial execution issues, despite strong growth in China.
- Demand for high-end specialty procedures such as adult orthodontic cases and full arch implant restorations remains muted, reflecting cautious spending by clinicians.
- The company faces ongoing challenges in the Equipment & Consumables segment, with a slight decline in core sales and continued softness in demand for large equipment.
My name is David, and I will be your conference call facilitator this afternoon. At this time, I'd like to welcome everyone to Envista Holdings Corporation's First Quarter 2024 Earnings Results Conference Call. (Operator Instructions).
I will now turn the call over to Mr. Stephen Keller, Principal Financial Officer of Envista Holdings. Mr. Keller, you may begin your conference call.
Good afternoon, and thanks for joining the call. With me today is Amir Aghdaei, our current President and Chief Executive Officer; and Paul Keel, who will assume the position of President and CEO later this afternoon.
Given that today's Paul's first day with Envista, Amir and I will be leading the call and will handle the Q&A at the end of the prepared remarks. Before we begin, I want to point out that our earnings release, the slide presentation supplementing today's call and the reconciliations and other information required by SEC Regulation G relating to any non-GAAP
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