With the financial reports of various dental companies around the world in 2021Q1, the negative impact of the new crown epidemic on global dental manufacturers has fully recovered. Starting from 2021, all dental companies have delivered a beautiful report card.
However, the gap that has been opened before during the epidemic has not been filled, and Matthew effect has further highlighted.
The Chinese market is still an important engine for the overall growth of various enterprises, and the battlefield of digitalization has ignited the field of mouth sweeping.
We analyze the upstream Densbosinold, Aiqi Technology, Envista, Schoman, M, the channel platform giants of the midstream Hanruixiang , their revenue and strategies in 2021Q1, and a glimpse of the development of the dental industry in 2021.
1
Performance: Aiqi Technology's growth rate is 62.4%,
Envista China's business growth exceeds 50%
The plan for one year is spring, and Q1 is also the quarter when companies make expectations for the overall revenue of the year. After experiencing the "haze" of 2020, we can see that the overall revenue of each company has basically escaped from the impact of the epidemic, and has both shown double-digit growth year-on-year.
manufacturers:
- Densbosinoldst still maintains the first with revenue of US$1.027 billion, with revenue up 17.5% year-on-year;
- Aiqi Technology Since leaping to second place in Q3 2020, it has maintained its growth momentum and further widened the gap with the third place in Q1 2021. and ranked first with a growth rate of 62.4%;
channel merchants:
- Han Ruixiang dental business revenue was US$1.79 billion, an increase of 21% year-on-year, and the group's gross profit margin reached 30.5%.
exchange rate :1 Swiss franc =1.09 USD.
In the Chinese market,
- Aiqi Technology China revenue was US$60 million, up 210% year-on-year. accounts for 6.8% of the global business, making it the third largest market in the world after the United States and Switzerland .
- EnvistaChina region revenue growth is greater than 50%. is mainly driven by professional products and technical businesses (including transplantation and orthodontics).
- In addition, although no specific data was released, Densberg and Szorman also stated in their financial reports that the growth of the Chinese market is an important driver.
Densberg: The annual revenue is expected to grow by more than 23%
Densbergberg still maintains the top 1 of global dental manufacturers with total revenue of .027 billion , with revenue of +17.5% (organic+12.1%).
▲Densbosinold 021 overall revenue
Dental technology and equipment business: revenue was US$597 million, up 14.8% year-on-year.
- is mainly due to the growth brought about by the rebound after Covid-19.
Oral Materials Business: revenue was US$430 million, up 21.5% year-on-year.
- is mainly driven by endodontic disease, repair and prevention businesses.
▲Densbosinod 021 Q1 business revenue
regional changes:
United States: revenue was US$347 million, up 15.7% year-on-year;
- revenue growth includes the acquisition of invisible correction company Byte and OSSIX® and biomaterial combination supplier Datum Dental's 14.8% gain was offset by a 5.3% reduction from the divestment of non-strategic businesses and discontinued products.
Europe: revenue was US$418 million, up 12.1% year-on-year;
Other regions (including China): revenue was US$262 million, up 30.3% year-on-year.
▲Densberg 021 regional revenue
Due to the good performance of Q1 and the global epidemic control, Densberg raised its expected annual revenue growth lower limit to 23%.
Aiqi Technology: Oral scanning has become the focus of digitalization
021 Q1, Aiqi Technology's overall revenue was US$890 million, up 62.4% year-on-year and 7.2% month-on-month.
Invisible orthodontic business: revenue was US$750 million, year-on-year +56.4% , and +7.5% month-on-month.
- Yinshimei case set a record delivery of 5.958 million, up 65.8% year-on-year and 4.9% month-on-month.
- supplies 78,600 Yinshimei doctors worldwide, of which about 66,000 are using for the first time.
- As of 2021Q1, the total number of Yinshimei users reached 10.2 million, of which 2.6 million were teenagers.
system & service business (including intraoral scanner, Exocad, etc.): revenue was US$142 million, year-on-year +104%, and 5.8% month-on-month.
- software and CADCAM services sales driven, especially iTero's global shipments.
- In terms of the case of Invisal Mai, the digital scanning application in 2021Q1 increased from 75.8% in 2020Q1 to 80.9%.
▲Aiqi Technology 021 overall revenue
Regional changes:
U.S.: Invisible orthodontic business revenue + 39.9% year-on-year;
International market: Invisible orthodontic business revenue + 80.4% year-on-year, mainly driven by the Chinese market.
▲Aiqi Technology Q1 invisible orthodontics business regional revenue
Envista: Orthodontics and transplantation drive the revenue growth of China's market by more than 50%
Q12021, Envista's global revenue increased by 29.6% year-on-year, but month-on-month (compared to Q4 2020) -3.1%. Mainly due to seasonal factors, Q1 revenue is generally the lowest in a year.
Professional products and technical business: revenue US$1.37 billion , a year-on-year +34%;
- The number of doctors using the Spark invisible correction system increased by 35% compared with Q4 2020.
- In addition, revenue growth, structural cost savings and reduced spending related to the COVID-19 epidemic have driven the increase in profit margins.
Dental equipment and consumables business: revenue US$1.34 billion , a year-on-year +25%;
- Dental equipment growth exceeded 20%.
- has driven strong growth in consumables by strengthening cooperation with dealers.
- In addition, Envista Business System (EBS) continues to help reduce structural costs.
▲Envista Revenue in 2021Q1 data
regional changes:
North America: revenue was US$340 million;
Western Europe: revenue was US$170 million;
Other developed markets: revenue was US$50 million;
emerging markets: revenue was US$145 million, of which China's business revenue grew by more than 50% (mainly driven by planting and orthodontic business) .
- On March 24, 2021, Kava Group unveiled the "Kava Innovation Excellence Center" integrating display, training and experience in Shanghai, bringing new driving force for the ever-elevated Chinese dental medical market.
Schorman: Asia-Pacific market revenue grew by more than 70%
Schorman's Q1 2021 revenue was 470 million Swiss francs (about US$510 million), an increase of 34% year-on-year and 4.4% month-on-month.
- acquires invisible orthodontic service provider DrSmile, bringing a 2% revenue growth.
Planting business: , as Stroman's largest business, shows strong growth in the high-end field.
new product pre-sale situation exceeded expectations. Extensive online education measures continue to drive customer growth.
Repair Business: After successfully developed its D printing resin business in 2020, Stroman further expanded its global resin product portfolio. This includes signing a three-year agreement with Deltamed to provide the best solutions for high-end medical applications in the field of 3D printing.
Regional changes: mainly thanks to a significant increase of 74% in the Asia-Pacific market .
Europe, Middle East and Africa: Revenue .21 billionCHF , accounting for 46%, up 27% year-on-year and up 8% month-on-month;
- DrSmile in Europe is a leading direct-to-consumer invisible orthodontic supplier led by doctors. Q1Schermann will promote it to Austria , Germany, France, Italy and Switzerland. The next step will be Poland and Swedish .
North America: revenue .14 billion Swiss francs , accounting for 29.4%, up 29% year-on-year and up 6% month-on-month;
- is mainly driven by high-end planting business.
Asia-Pacific region: revenue .092 billion Swiss francs , accounting for 20%, up 74.4% year-on-year and up 0.2% month-on-month;
- is mainly due to the strong recovery of Australia, Japan and China's businesses.
- Japan is mainly swept by 3Shape, and China is mainly driven by Carestream business.
Latin America: revenue .025 billion Swiss francs , accounting for 5%, up 23.8% year-on-year and up 12% month-on-month.
▲Shizhuoman Regional Revenue Data in Q1 2021
3M: From -18.5% to +31%, the rebound is the largest
M Oral business revenue reached US$363 million in Q1, a year-on-year, and +6.45% compared with the same period in 2019.
M's oral business mainly focuses on two major solutions: dental and orthodontic , and has multiple brands such as Clarity, RelyX, Filtek and Clinpro.
In 2020, 3M oral revenue fell the most (-18.5%) among leading companies, and the performance of Q1 laid the foundation for its overall growth in 2021.
▲Q1 2021 3M dental revenue data
Han Ruixiang: The overall gross profit margin recovered to 30.5%
Q1 2021, Han Ruixiang's overall revenue was US$2.92 billion, gross profit was US$8.9, and gross profit margin was 30.5%, returning to the pre-epidemic level.
▲Han Ruixiang revenue data in Q1 2021
Dental is Han Ruixiang's largest business (accounting for 61.2%). In Q1 2021, the revenue of dentistry business was US$1.79 billion , an increase of 21.3% year-on-year.
▲Han Ruixiang Dental Business Revenue Data in Q1 2021
From the perspective of regional market, North America is the largest market of Han Ruixiang Dental, accounting for 58%; Europe is second, accounting for 30%, and other regions account for 12%.
Overall, both manufacturers and channel manufacturers in the global oral field have fully returned to the pre-epidemic level.
2
Growth key points: The Chinese market still has great potential,
Operation scan as a digital entrance becomes the "main battlefield"
dditional industry is in a huge and rapid digital transformation period, involving products, technologies, distribution channels and business models.With the fierce digital competition in the oral industry, the oral scanning field, which is an important entrance to digitalization, has become the "main battlefield".
In the Chinese market, the current price of oral scanning is still high for many private clinics in China, so the penetration rate of is still very low. However, as a must-have option for future dental consumption, with the upgrading of consumption and the improvement of people's awareness of oral health care, and the reduction in scanner prices brought about by more and more domestic manufacturers joining the market, the demand for intraoral scanners will continue to grow in the future.
Currently, the global vent scanning market mainly includes the following competitors: Invisale iTero, Stroman (mainly cooperated with 3shape and carestream), CEREC Omnicam of Densberg, and KaVo i500 of Envista.
Take the revenue growth in Q1 2021 as an example. Aiqi Technology was able to hit a new high with a growth rate of 62.4%, which is also due to the explosive growth of its mouth-scanning business .
021 Q1, Aiqi Technology System & Service Business revenue increased by 104% year-on-year. Part of it comes from the increase in the number of ipid scan installations, with a net income of US$47.2 million, and the other part comes from the increase in iTero ipid scan service revenue, which also helped exocad's CAD/CAM revenue, with a net income of US$23.6 million. In Q1, 2021, Aiqi Technology launched a new oral scanning product:
- iTero Element 5D Plus imaging system, and the digital workflow enhances visualization function to optimize the patient experience.
- iTero Element Flex intraoral scanner, with more possibilities to accelerate the digital transformation of in oral medical .
financial report data shows that
is in the US market . Aiqi Technology's cooperation with DECA Medical Group has been extended to 2025. DECA Medical Group will expand the use of iTero Element 5D imaging system in its US clinics.
in the Asia Pacific market , iTeroElement Flex performs well, and its only wand configuration provides the required mobility so doctors can perform a full bow scan for patients anywhere they choose.
▲Aiqi Technology iTero applications account for
In terms of Yinshimei case, the proportion of OPs in the US market reached 85.5% (+9.4% within two years), and the proportion of OPs in the international market reached 75.1% (+15.8% within two years) .
Aiqi Technology also stated in its financial report that the sales of iTero scanners are increasing in the company's overall revenue, and the acquisition of exocad in 2020 also serves as a good complement to its dental digital business. Yinshimei + iTero has become the growth foundation of Aiqi Technology.
In addition, in Q1 2021, the high growth of 74.4% in the Asia-Pacific region was mainly due to the rapid growth of intraoral scanners, driven by 3Shape scanners in the Japanese market and Carestream in the Chinese market.
According to its financial report, intraoral scanners have become the second largest contributor to its digital solution revenue.
3
3Trend: Be optimistic about China's consumption upgrade,
Layout training becomes the basis for future growth
Oral industry is a close combination of medicine and beauty, with strong consumption attributes. With the improvement of aesthetic needs and health awareness among the masses, oral has become a key area for consumption upgrades .
compared with the comparable period of the United States. When the per capita disposable income of in the United States reached about US$10,000, the oral consumption of in the United States began to flourish for decades. Around 2017, the per capita disposable income of Beijing, Shanghai and Guangzhou in China also reached this starting point. The huge potential of consumption upgrading makes the size of China's oral market expected to exceed 100 billion.
In the oral industry, dentists are an important factor in the development of the industry, including consumer recognition. Therefore, major companies have also grasped this key and planned to cultivate talents.
On March 24, 2021, the "Kawa Innovation Center of Excellence" was unveiled in Shanghai. The integrated display, training and experience will be an important training base for the four major business departments of Kawa . With the goal of retraining and re-developing oral doctors, it will help more young doctors grow steadily.
Scherman will invest 170 million Swiss francs (about 1.2 billion RMB) to establish the firstScherman park in China, and is expected to be put into use by 2029.
▲Scherman China Park schematic
- It has signed an investment agreement with Shanghai Xinzhuang Industrial Park to build its first park in China. The park will integrate manufacturing, education and innovation centers.
- China Park will provide various educational projects and Stroman's transplant and orthodontic products for the Chinese oral market. It will meet the rapidly growing demand for dental solutions from Chinese dentists and patients.
Dental industry is the field closest to consumers, and therefore it has also suffered the biggest impact in the new crown epidemic in 2020. At present, it seems that the recovery in all areas of big health is also very good.
It can also be seen from the financial reports of major dental companies that whoever grasps the consumer will be able to take the lead in the dental track. Digitalization may be the latest tool to grasp consumers.
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