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2020 Financial Year: Solid Performance Despite Decline in Sales

COLTENE Holding AG / Key word(s): Annual Results

05-March-2021 / 06:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

  • Due to global COVID-19 pandemic, net sales declined to CHF 248.4 million (2019: CHF 273.8 million), a 4.1% drop in local currency terms
  • EBIT before one-time charge from Vigodent disposal was CHF 32.1 million (2019: CHF 32.0 million); EBIT margin was 12.9% (2019: 11.7%)
  • Reported EBIT was CHF 23.3 million, EBIT margin 9.4%
  • Distribution of CHF 3.00 per share (2019: CHF 1.50) from capital contribution reserves

For full-year 2020, the COLTENE Group reports net sales of CHF 248.4 million (previous year: CHF 273.8 million). In local currency terms, sales were down 4.1% and in Swiss franc terms, by 9.3%. The significant 35.5% increase in Infection Control sales was unable to fully compensate for the revenue lost in Dental Preservation and Efficient Treatment. While COLTENE Group sales accelerated in Switzerland and North America, the temporary closing of dental practices slowed down demand in many other markets. Operating profit (EBIT) before a one-time non-cash charge from the disposal of the Brazilian subsidiary was CHF 32.1 million (2019: CHF 32.0 million). Net profit before the one-time charge was CHF 19.9 million (2019: CHF 20.0 million). EBIT reported for 2020 was CHF 23.3 million, with net profit at CHF 8.2 million. At 48.1%, the equity ratio remained on a par with the previous year (48.0%) while net debt fell by 40.6% from CHF 36.8 million to CHF 21.9 million. Free cash flow more than doubled from CHF 10.7 million a year earlier to CHF 24.3 million (+127%).

At the Annual General Meeting on March 31, 2021, the Board of Directors will propose a distribution of CHF 3.00 (2019: CHF 1.50) per share from capital contribution reserves for shareholder approval. For natural persons residing in Switzerland, this distribution is tax exempt.

The COLTENE Group has enjoyed a healthy start to 2021 even as business performance remains exposed to significant risks due to the COVID-19 pandemic. The Group serves the dental market and is benefiting from brisk demand for Infection Control products in particular, which have become far more important as a result of the pandemic. These products make dental practices safer and allow for dependable disinfection and compliance with the required hygiene standards. COLTENE plans to sustain the above-average innovation-led growth achieved in this strategic product group. With the anticipated gradual return of business activity to pre-pandemic levels, COLTENE expects demand to pick up also in Dental Preservation and Efficient Treatment.

The new EU Medical Device Regulation (MDR) comes into force in May 2021. COLTENE attained first MDR certification already in 2020, demonstrating the high quality standards of its products and processes.

Integrated and Focused
After reviewing its product portfolio in 2020, the COLTENE Group discontinued non-strategic products that are low-volume and have low EBIT margins. The integration of SciCan and Micro-Mega continued making strides, notably boosted by the Group-wide rollout of uniform software systems and processes. These include SAP for enterprise resource planning (ERP) and systems for centralized product information (PIM) and customer relationship management (CRM).

The COLTENE Group's Marketing and Sales teams maintained close customer contact despite the restrictions imposed by the pandemic. In support of these efforts, COLTENE expanded its electronic communication capabilities.

In 2020, all of Kenda's production was relocated and integrated in the existing facility and organization in Altst├Ątten. On December 17, 2020, the sale of Brazilian subsidiary Vigodent was announced, and the transaction was completed by year-end 2020.

Impact of the Global COVID-19 Pandemic
After a strong first quarter with high growth rates and an above-average EBIT margin, sales plummeted in the second quarter as governments mandated the closing of most dental practices in COLTENE's core markets. COLTENE responded to the COVID-19 pandemic with a comprehensive set of measures to protect jobs and the health and safety of its employees and to ensure the liquidity and profitability of its business. In Europe, short-term work was introduced, largely averting the need to terminate jobs. In the US, roughly half of the 400-strong workforce was temporarily furloughed, with social insurance contributions continuing. Through these measures, the COLTENE Group was able to retain the know-how of its employees for the economic recovery in H2.

Change in Group Management
Effective December 31, 2021, Gerhard Mahrle, seasoned Group CFO, will step down as a member of COLTENE Group Management in anticipation of his impending retirement. His successor will be announced at a later date. The Board of Directors of COLTENE Holding AG wishes to thank Gerhard Mahrle for his many years of service and dedication and his contribution to the company's success. Gerhard Mahrle joined the company in 2014 as Chief Financial Officer and member of Group Management. Martin Schaufelberger, COLTENE Group CEO, says: "On behalf of the Board and Group Management, I would like thank Gerhard Mahrle for his extremely valuable service to the COLTENE Group. He made a major contribution to the company's development, including in the context of the SciCan and Micro-Mega acquisitions."

The COLTENE strategy proved its value during the pandemic. The Group has demonstrated its resilience and ability to adapt, and through its focus on Infection Control as a strategic product group, it has shown its potential for growth. The core elements underpinning the strategy will remain unchanged: Focusing on innovative and profitable products, deepening certification and registration expertise, and pursuing sustainable growth in key markets across all three product groups - Infection Control primarily, plus Dental Preservation, and Efficient Treatment.

Thanks to the cost reduction measures taken in 2020, the cost base is significantly lower than at the start of 2020. The Group affirms its medium-term targets of a 15% EBIT margin and sales growth modestly above the market. For 2021, Group Management expects demand to recover to 2019 levels in Dental Preservation and Efficient Treatment.

Martin Schaufelberger, COLTENE Group CEO, says: "The COLTENE Group is well positioned to meet challenges such as the fierce competitive market, accelerating digital business transformation, and new regulatory changes."


Media and Analyst Conference
Today Friday, March 5, 2021, at 10:00 a.m. CET, online via MS Teams. To request the link to join the meeting, email Daniela Kuster at

To download the presentation documents, visit

Annual General Meeting
The Annual General Meeting of COLTENE Holding AG will be held online, without shareholders attending in-person, on Wednesday, March 31, 2021, at 4:00 p.m. CET at the company headquarters. The invitation to the Annual General Meeting can be downloaded at

Annual Report 2020
COLTENE Holding AG's Annual Report 2020 was published today and can be downloaded at

Key figures (in CHF 1000)



% change

Net sales

248 352

273 828


Operating expenses

131 205

149 700


Operating profit (EBIT)

23 259

32 008


     as % of net sales




Net profit

8 232

20 031


Operating cash flow

34 806

23 785


Investments (net)

10 516

13 074


Free cash flow

24 290

10 711






Key figures (in CHF 1000)



% change

Net debt

-21 866

-36 832


Total assets

187 631

189 829


Shareholders' equity

90 234

91 210


     as % of total assets




Distribution per share in CHF




Number of employees (FTE)

1 189

1 414


1) Board of Directors' proposal to the Annual General Meeting on March 31, 2021: distribution of CHF 3.00 per share from capital contribution reserves and excluding treasury shares.

Financial calender

Media and analyst conference on
2020 financial year,
release of Annual Report 2020

Annual General Meeting 2021

March 5, 20212

March 31, 2021

Release of Half-year Report 2021 and Conference call on 2021 half-year results

August 6, 2021

Release of Annual Report 2021 and Media and analyst conference on 2021 financial year

March 4, 2022

Annual General Meeting 2022 April 21, 2022
Release of Annual Report 2022 and Conference call on 2022 half-year results August 5, 2022

End of ad hoc announcement
Language: English
Company: COLTENE Holding AG
Feldwiesenstrasse 20
9450 Altst├Ątten
ISIN: CH0025343259
Valor: 2534325
Listed: SIX Swiss Exchange
EQS News ID: 1173354

End of Announcement EQS Group News Service

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Last Updated: 05-Mar-2021