Further market decline in Japan in Q3 is materially impacting revenue and profit outlook for full year 2012

Today Nobel Biocare (NOBN) announced preliminary revenue for the first nine months of EUR 427.5 million, up 3.1% in euro and down 2.4% at constant exchange rates (CER).

Revenue for the third quarter was EUR 131.0 million, up 2.2% in euro and down 5.1% at CER.

Revenue development in the third quarter continued to be in line with the market. Excluding Japan, revenue was flat (-0.1% at CER) for the quarter and modestly down 0.6% at CER year-to-date.

As communicated earlier, adverse media reporting on implant treatments has impacted patient flow in Japan. This has led to a further deterioration of the market in the course of the third quarter. Nobel Biocare has a leading market share in Japan, which represents about 13% of its revenue and contributes disproportionately high profit. The development is difficult to predict at this point in time but the company does not anticipate any improvement in the coming months.

APAC excluding Japan was up 15.8% (CER) for the quarter and 7.4% (CER) year-to-date. In EMEA revenue development was consistent with the previous quarters and in line with the market, as also in North America, where the market continued to soften.

The company will continue with its strategic investments in innovation and selling. At the same time Nobel Biocare will maintain its high cost-consciousness and drive efficiencies throughout the business. These investments are important to further build Nobel Biocare and accelerate growth in the mid-term.

Nobel Biocare foresees development of revenue for the full year in line with the market, which is anticipated to decline modestly. Based on this and barring any unforeseen events, in particular a further deterioration in Japan, Nobel Biocare expects revenue for the full year to decline in the modest single-digit percentage range at CER. The EBIT for the full year is expected to be about EUR 67 to 70 million (as reported) as a consequence of the revenue shortfall in Japan.

The company will provide full details of its third quarter results on the scheduled reporting date, 8 November 2012.