XRAY - DENTSPLY SIRONA Inc. (XRAY) Q1 2024 Earnings Call Transcript

2024-05-02 21:48:08 ET

DENTSPLY SIRONA Inc. (XRAY)

Q1 2024 Results Conference Call

May 02, 2024 08:30 AM ET

Company Participants

Andrea Daley - Vice President-Investor Relations

Simon Campion - CEO, President & Director

Glenn Coleman - Chief Financial Officer

Andreas Frank - Executive Vice President & Chief Business Officer

Conference Call Participants

David Saxon - Needham & Company

Jeff Johnson - Baird

Dylan Finley - UBS

Elizabeth Anderson - Evercore ISI

Jason Bednar - Piper Sandler

Jordan Bernstein - Stifel

Sarah Conrad - Goldman Sachs

Justin Lin - William Blair

Allen Lutz - Bank of America

Michael Petusky - Barrington Research

Erin Wright - Morgan Stanley

Presentation

Operator

Good day, everyone. And thank you for standing by. Welcome to the DENTSPLY SIRONA First Quarter 2024 Earnings Call [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to the Vice President of Investor Relations, Andrea Daley. Please proceed.

Andrea Daley

Thank you, operator. And good morning, everyone. Welcome to the DENTSPLY SIRONA first quarter 2024 earnings call. Joining me for today's call is Simon Campion, Chief Executive Officer; Glenn Coleman, Chief Financial Officer; and Andreas Frank, Chief Business Officer. I'd like to remind you that an earnings press release and slide presentation related to the call are available in the Investors section of our Web site at www.dentsplysirona.com. Before we begin, please take a moment to read the forward-looking statements in our earnings press release. During today's call, we may make certain predictive statements that reflect our current views about future performance and financial results. We base these statements and certain assumptions and expectations on future events that are subject to risks and uncertainties. Our most recently filed Form 10-K and any updating information in subsequent SEC filings lists some of the most important risk factors that could cause actual results to differ from our predictions. Additionally, on today's call, our remarks will be based on non-GAAP financial results. We believe that non-GAAP financial measures offer investors valuable additional insights into our business' financial performance, enable the comparison of financial results between periods where certain items may vary independently of business performance and enhance transparency regarding key metrics utilized by management in operating our business. Please refer to our press release for the reconciliation between GAAP and non-GAAP results. Comparisons provided are to prior year quarter, unless otherwise noted. A webcast replay of today's call will be available on the Investors section of the company's Web site following the call. And with that, I will now turn the call over to Simon.

Simon Campion

Thank you, Andrea. And thank you all for being here with us this morning for our Q1 2024 earnings call. Today, I'll begin, as usual, by providing a summary of our recent performance, Glenn will cover Q1 financial results and the full year outlook. And I will finish by providing an update on our strategic operating plan. Now starting on Slide 3. In Q1, organic sales declined by 1.9%, driven by lower sales in Connected Technology Solutions and Essential Dental Solutions, partly offset by growth in Orthodontic and Implant Solutions and Wellspect HealthCare. Within CTS, imaging equipment experienced larger-than-expected headwinds, driven by continued unfavorable macroeconomic conditions and competitive pressure. Regionally, the macroeconomic environment in Germany remains challenging. For the quarter, organic sales were roughly flat, excluding Germany. In April, we conducted our quarterly global customer survey covering 12 countries with nearly 1,500 respondents. Survey results indicate that in the US patient volumes are stable and dentist sentiment is relatively unchanged....

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