Envista (NVST) 1 May 242024 Q1 Earnings call transcript

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. your begin may you conference call. Keller,

the and today is afternoon, Executive afternoon. and will thanks later and President for me With Officer; assume who Keel, call. the Paul of Amir this Chief President CEO joining and Good position Aghdaei, current our

be Q&A today's that at of prepared remarks. will the day call and Amir and with end Given the Envista, will first I call's leading handle the the

today's release, I Regulation begin, out to and the other slide and want of supplement any G non-GAAP SEC earnings we Before financial during that information presentation available all our measures Investors point are on call to by section reconciliations www.envistaco.com. the website, provided our required call the the relating

the the our later until The audio portion Events of heading our this will on section today next website Investors call remain under Presentations. archived will It and call. archived quarterly of be

of year-over-year metrics additional and in are significant impacted references period-to-period the the describe to more Unless otherwise financial remarks factors presentation, in describe of quarter first decreases materials to the references increases supplemental noted, year-over-year. these impacted financial some a that factors year-over-year or The performance. company-specific will we relate metrics our During XXXX that performance.

During devices regulatory submitted and in certain approvals only the pending or products we describe that call, markets. certain certain may and have applications are available

forth These we except by any of might and results not in statements, are that of make assume law. events our uncertainties that that obligation only within are -- as from forward-looking where including and developments speak the statements we risks statements number laws, any of regarding as do update materially forward-looking statements SEC forward-looking These made, in the statements meaning set may and forward-looking a make forward-looking they subject the also will We filings, statements any and matter to those the believe or future. anticipate occur a date differ securities including to we actual or today. federal required

to Amir. I'd With that, like to call over the turn

afternoon, Call. We appreciate to Thank First us Stephen. time welcome today. Quarter Good Envista's you, and you the join to taking XXXX Earnings

discuss leadership quickly earnings, quarter like time our first discuss we I to take transition. to this Before our would

announced Board February, and commitment late medtech our launching find were to indicated my were operating they Board had accomplished wanted adviser an the next CEO of multinational At to to multidivisional public that strong to Board a that ran who they the company In successor had with improvement Ideally, process the someone a continuous our and who time, development. looking lead or phase for dental in to successfully the lean complex businesses. experience principles. find

legacy dental looking to excited another They you Chief President candidate for We're Executive and Officer digitizing, further Keel, Paul personalizing, accelerate of care. a were vision who introduce this our and and unique democratizing afternoon. will formally to who build could appointed later be

Paul billion. from joins revenue and company Smiths $X annual Group, of around technology U.K.-based engineering a with Envista

transformed During through organic the investments. and the M&A his portfolio growth time, power disciplined Smiths

leading at experience -- move to GE, at spent qualified and years a Mills he XX make XM, leading Smith, lead variety McKenzie. General spent to Prior where we Paul's and of has uniquely track time Envista both Prior had businesses. roles, including Paul XM, Paul background, forward. him record had to dental medical and as

welcome Paul, Envista. to

have for predecessor accomplished decade. have past by have you and want Envista known the all have thanking for and been you many impressed you I over everything done it's the dental the companies I and Amir. and with and years, start to that for Thanks, admired Envista community. team

an phase for up move our Envista growth. publicly portfolio a strengthened honor It next and the operations privilege and compelling and we company, in standing vision is a as me of traded into clear leadership to In now over of articulated take company's advanced a addition as to Vista you've for future. the

Before let a back wonderful company join I and know turn the chose here call to you company this over to leave high-performing Envista. to I in why Smiths take to an Stephen, Amir I'll equally at opportunity

stakeholders. colleagues, where First colleagues above the and Envista and I is is our company the of constant a dental focus across coming powerful am all, and all my will operations. in relentless a Care by on lives serves And shared mission patients' as industry, peers passionate all has My of foremost, clear been business. Innovation Oral technology partners. be our a career and Envista about improving matters. that the where strength a patient-centric over weeks participate a who clearly focus customers, pillar customers, my customers, our threefold:

and With welcome. with respect the Barcelona, to great to plane and I'll first, week on I'll in and the reconnect customers hop a warm I'm I Summit connect grateful already the for next where have a heard Envista many from partners.

organization. couldn't that more I with colleagues, I the of engaging entire forward terms have I'm leaders with be and far, this the met In to impressed looking

new We permanent encouraged prospects. the we're as for recruiting by a Biocare and are leader Nobel CFO, focused on a well as

firsthand companies. it immersion as And does pertains and we EBS this X-plus decades. own Smith. of to previous family this continuous at it start good GE after I I of believer on Danaher And shortly my will one experiences in at improvement. than operations, compounding learned own my No to the the over lifelong call, implemented and better the a building I'm power effect this XM,

margins many is significant opportunity. this of as with for capabilities, and is all I with my stakeholders. team. Envista weeks ahead possible. and amazing segments, all months begin Much by and I meet work leading I and enviable ahead come as to I to [ have you and more in opportunity I am the believe have we key energized the I distinctive voted feed company company, in positions a to as engage understand in global ]. characteristics there believe an the world-class with deep and gross cash create value and care oral

And over with Amir. to it that, turn I'll back

Thanks, Paul.

Turning to our results.

prioritize first and growth delivered as an we achieved X.X% to of The continuing margin long-term reignite challenging margin coupled intended The profitability. of and sales while was investments quarter, drive to by In growth in the core saw in the Spark. proved growth our margin North quarter we improvements growth drive mix, strategic lower EBITDA investments implant adjusted and XX%. with driven to unfavorable American modest business

will hit point, drive the are our While inflection value we long-term confident haven't that creation. investments we

it Before then update offer to on in our color quick to our environment Steven first discuss more to provide this current operating towards results a progress strategic and priorities. take more in to opportunity I quarter want detail, I our turn over the

Overall, large patient while stable, to Globally, remains the trends dental see continue macroeconomic and environment the resilient. across traffic we remains mixed market.

However, be hygiene muted. cases remain implant and full basic assumed orthodontic to arch treatments. more demand restorative Demand for more and adult appears including higher-end restorations procedures towards specialty

Further, near-term some remain cautious optimistic near-term are of making clinicians in private level personalized in digitize the ensuring equipment provide that about care they confident and areas prioritize inventories. more remain practice care. the practice, them demand and high-quality, invest will clinicians proactively we challenges, and can both that investments that trends cautiously productive their help them Despite DSOs in dental we XXXX. patients about term, and clinical Long will

Spark to progress the outperform Focusing clear sustained performance on in investors business market QX. driven orthodontic aligners. in continues Overall, by our

over in of with the in sequential the active During we Spark growth doctors. quarter, double-digit saw growth XX% number

including Europe growth and sustained Ormco's a We for Our focus specialists wires with that widespread as and in believe both a our opportunity with orthodontic brackets creates progress gains. North advantage markets. in portfolio, rapid comprehensive stable remains robust America aligners as growth our and share and more and business competitive well long-term ample emerging under

strong in weaker in China market Europe was Our as quarter in in North and very America. implant continued business demand offset modestly growth first declined underperformance Western modestly the by

steps in America. to are As our we address discussed, have performance commercial we issues North taking aggressive

overhauled are have leadership upgrading accelerate growth. and resources our to We marketing our and help capabilities, our our education training commercial significant commercial improving adding team,

refine playbook, sales drive tools European standard out sales the to have work, we growth. rolled proven our priorities, enhance Utilizing refocused and our team, our

members. the the specialist aimed at networks first referral North supporting infill customers. we smart over of in and quarter, number clinicians In training further our the clinical alone, and developing courses We provided to of staff America X,XXX increased

are issues return of exit and performance too obviously declare we that leading to strong dedicated believe steps XXXX. level our as implant it's While to we we are growth community product victory, confident that brands, position and taking early us market to address our the to right portfolio, specialists

improvements entry, were focusing progress management our against our goals. productivity the below to on improve steadily customer cost redesigned are The ] team continues Kaizen [ automation and profitability EBITDA President X We portfolio design and countries the making helped in further manufacturing. and at margins the and manufacturing while in adjusted successfully material historical reductions. In order we first driving to long-term digitation quarter, in Spark packaging targeted we While quarter, shipping long-term by both pricing, costs. drive events level reducing X across experience our

average. have operational aligner. on Spark's reductions significant fleet driving remains production resulted actions margin improvement The continuous our team in our Our per in to cost improvement focused bring to

Spark, business to streamline and costs action across we our took of the further portfolio. Outside reduce

impact see these as the cost move we We expect of XXXX. through to savings

diagnostic our goal priorities our traditional growth-oriented of transformation business capabilities. diagnostic portfolio. the A stronger a and is best-in-class and comprehensive primary a more with solutions solution business of imaging industry-leading combining this better, remains One of component into equipment building continuing AI

clinicians ] Dexis with implant implant workflow manage the the to tool launched from giving [ the dental diagnosis set. is ecosystem, delivery entire to one integrated QX, In ability

released our ScanFlow steps planning. precise productivity case data recently and boost IS in the simplifying automating Additionally, updates Dexis capabilities our expanding software, clinicians by to the capture to further AI

and now hard implant removable the after With efficiently, cases. cavity digitize these fixed, tools, or for soft oral clinicians tissues

solutions product on with competitive decision most into focus As our we focused geographies the have Dexis differentiated and to advantage. made a evolves more concentrate business, the categories

we it some While forward. move faster us as short-term this created should for growth position headwinds, has

America We in believe QX. Despite solid continued full improved North our already deliver starting to growth in year to delivered we for expect equipment, our our diagnosis mid-single-digit for business saw XXXX. focus we North business large off pay as the American demand softness growth is

to financials on full year will I growth our to and turn quarter an call Stephen and through Returning evolution signals to performance. over our in more of America first segment. the our important equipment consumables turning details now provide segment in the go North point

the segment, and delivered the $XXX.X offset a in this first the the for by our growth impact reported and Amir. grew quarter X.X%. exchange million, first on we Adjusting for XXXX. consumables of our equipment represents over Specialty Products quarter, quarter in decline decrease rates, sales Technologies slight of currency reflects basis, sales a This In core a slight Thanks, of segment.

a by similar declined perspective, markets a From America and X.X% Western amount. declining our geographic North developed with Europe

quarter by markets the emerging growth continued in in Russia in demand volatility America. grew as Our China, XX.X% weaker in offset very with Latin as strong well

was quarter price reductions. Our first first margin mix of margin compared -- driven points result and year. prior unfavorable basis adjusted quarter gross The XX.X%, by XX decrease VBP in a to decrease our driven product the was gross

year-over-year, While our other improvement consumables, productivity gross reduction sales Spark our and margin higher by driven see costs initiatives. of declined a we did manufacturing sequential in

XXX investments Our is points The in adjusted which significant anticipated the adjusted and margins were EBITDA mix margin of lower XXXX. QX margins, than by America unfavorable and for North driven implants. both EBITDA and the primarily lower lower in turnaround gross Spark quarter partially XX%, was in geographic basis

of to $X.XX period $X.XX Our prior diluted in year. the the first quarter compared comparable adjusted was EPS

& Core XXXX. by increased first in to Products of segment the quarter Specialty compared X.X% revenue our Technologies

in by strong in North growth growth declines in emerging offset was and America. very Western Solid Europe markets

outperform. business our single grew segment, orthodontic continuing this to digits with low Within Spark

and our is developed business quarter, our portfolio digits not clinicians bracket growth ] confident mid-single outperforming market [ and that demand remain the on declined markets. as in Despite growth markets weaker we in with value the business Our in focus continuing emerging to slower specialist. wire comprehensive could solid offset our the orthodontic orthodontic

the in first strong offset strong in our Our value Europe by driven America. business growth in China quarter as growth was China. underperformance declined North and implant the modestly quarter, implant business Western by in both in grew Encouragingly,

Spark quarter, the the operating & of VBP profit Products impact XX.X%. in first North to American unfavorable the the points period and the an For China versus our program Technologies in segment largely prior investments due This Specialty mix is our year, had down pricing of significant same adjusted basis decline and the with implant XXX businesses.

As substantial our discussed, for to business set us up make implant are continuing to long-term we in investments growth.

our onetime training included and making segmentation. market in investments significantly analysis and quarter the sales in adding Investments a marketing deep XX over our and of increasing resources, education activities our customer

first Consumables the X.X% to Equipment to quarter compared the Core by in decreased Turning of segment. XXXX. our & quarter sales first

North quarter the prior combined digits our year. the in demand Encouragingly, primarily Emerging nonstrategic muted business stabilized. by by decline deemphasizing declined was and North driven geographies macro a business The large versus first saw mid-single decline solutions. as Our grew effect markets in Diagnostic and the the driven of are America. outside conditions of weakness the quarter, American

efforts, these our focus With and build our a in we sustainable where energy to concentrate competitive advantage. continue can refine we and markets maintain

Our to the American sell-out. demand partnerships remains distribution continue grew to patient strengthen of stabilization the North low in channel. in our sell-out. consumable softness quarter, business led in Outside we our by single distributors America, Patient North demand digits some North drive of to resilient, weaker the with America driven and

our drive XXXX, partnering solutions. our focus on of move through distributors As sell-out remains with to our we

and to gain will in are markets. well share to actively We believe continue our manage positioned we focus we price,

profit was versus in Equipment & of XX.X% QX in XX.X% first Consumables adjusted operating margin quarter XXXX. the XXXX of

and As improved a anticipated, we our operating mix. greater overall than business our stabilized, sequential we improvement basis margins in point XXX as consumables sales saw

believe operations XXXX, to move we segment, positioned growth margins. this continue focus we our improve to well and and we streamline in operating sharpen we our accelerate are As and through that

we versus free flow the significant million, prior In generated which the year. quarter improvement of the was quarter, of first first $XX.X cash a

compensation management, cash CapEx. payments by was increased lower primarily flow improved Our lower and driven incentive vendor

of flow to longer-term committed our focus and our excess income. cash annual delivering free remain to We free goal in of cash on net continue flow improving

I'll the provide comments. Amir to now to over turn call some closing

is is supported our solid underpenetrated We market and remain attractive, Stephen. Thanks, confident strategy in outlook. long-term by trends. and dental growth The

Our executing proven have we environment. businesses are in a of track dynamic strategically record differentiated, a and

our in value create the conviction long have over We to meaningful ability term.

our focused key remains creation. priorities long-term on The to X execution for team value build Envista foundation improve and short-term the

further providing wires options, accelerate and and First, treatment and we aligners. with to specialists business differentiated a plan orthodontic brackets of by our integrated suite clear orthodontic including

We will business. in improvements continue to drive margin Spark our sequential

franchises plan driving the second of is value across Our focus implant area and Globally, full business. regenerative implant to position premium workflow, and implant prosthetic our to our growth of provide offerings. we including solutions

customers. We will utilize differentiation and capabilities and diagnostics digital premier our win to create

America. improve execution in our in top priority is this effort to Our commercial North

see path We have a made targeted investments and now growth. to reinvigorating

be XXXX. to above the exit is goal we at Our market or growing as

cost we move million further as will investor $XX XXXX. through EBS, the to in realized We XXXX, impact structure. utilize the an intend Finally, system, to we annually additional year an business structural optimize our being with full cost by reduce

continuous spending corporate further operations across and improvement organization. our Our to the streamline us G&A functions allow will our consolidate drive out culture

our on personalizing improve Our patients' patients, our customers, care. purpose shareholders. with professionals for is and partner to digitizing, dental to by remain employees lives and We focused dental long-term democratizing our value delivering

thank the past this this the would and for shareholders note, to over to I'm accomplished, lead X what allowing opportunity our have of a me Envista proud we business customers, take our partners I'm success On long-term team, the and committed of to I to Envista. personal years. like our

I a and adviser remain for the will both senior shareholder remain future excited of and Envista.

That available take and questions. I comments. Amir. be to your Amir concludes Thanks, will our formal now

from Instructions]. question Evercore. Elizabeth take with first [Operator We'll Anderson our

call, that or no thing about for one stood there there update. environment out but scattered rest guidance in in some can the we about the talk -- is of me If guidance -- And forward press comments reiteration XXXX. the was the demand to were

guidance second and if the for you quarter. comment So specifically wondering XXXX I for the could was

Thank you, Elizabeth.

little further long-term give Envista build accelerate average, to focused on bring to current continue the is transition, a expand business, remains outlook. key margins Spark our Paul think to the opportunity and of viable the bit situation assess leadership need we meantime, Spark drive balance In to growth. orthodontic priorities, which to of a that I it fleet plan year the Given and

continue or back at are as growth growth and by would Secondly, market end current do the American like to that. that business market by plant. XXXX above to we get North around rest accelerate of proven We have implant in our the world of we the to to able

Elizabeth. our optimizing cost further forward. that you, that we our Thank over need EBS, freedom going $XX million. think in improve give our structure I us see of by execution order to And continue XXXX cost is to going impact to structural full We're drive improve that in the to going and

any it. a details Got count Can sort of the be cadence the as think about of further investments that you you that you you head you're saying about in of level sort other maybe on quarter? about the in made the in first second driver specifically maybe also hear And follow-up. about just spending XX along, talk guys for quarter? I helpful. Obviously, And if investments entailed quarter. to what made like the And speak of how would implant. talked that some the then revenue and can

some did some Sure, onetime we quarter, Elizabeth. of which and Yes, make some obviously are it will continue investments of on. in then significant the

So talked the areas we million about in of quarter, probably the made investments around that worth we about. $XX across

doing bit some verifying on our customer of training as some some using little of distributors programs, as to just we commercial our activities drive upfront also around margin did third-party education partnership onetime expenses resources . Then well So, on the the of some improvement. Spark and that resources. for we're some side segmentation a more kind

will going-forward will run continuous it it and rest invested -- most in XX% of onetime think the So -- or of our repeat. in is rate. it of nature, -- XX% of a of be couple maybe XX%, But I and of the kind costs was will

our or at to quickly. that themselves grow very in business profitable for a implant here performance -- North specifically those to is of investments It's these America above soon highly the Obviously, investments business, goal the market. get as as is pay turns,

next our from question Jon take We'll Stifel. Block with

XQ been Spark. Maybe there. just U.S., XQ in you taking been orthodontic Angel think is I'll They're right which and I clearly been EMEA They've jump which where has have is your back Amir, year-over-year, to a point. numbers, taking thought reside. But into was of into predominantly I quarter-over-quarter, you trying channel, XX% a out 'XX just bit pushing into it where down up I harder to the share. number 'XX. heard share to

talk my where on or be them numbers be the first may verify you and that So maybe number the U.S. kid within block which if new And to could seeing what player maybe wrong? from seems just particular to sort of or they you're EMEA? two,

Thank Jon. Yes. you,

to grew XX%. just So or -- over reiterate, Spark year-over-year,

growth was is XX%. active And up So normally, time. in time. QX sequentially. over the up number us grow over did it quickly that good revenue confidence sequential a not this slower, double-digit going grow for is to The reason continue the But to gives that ramps pretty it doctors that of business

of not to a quarter. we are we we the developed to growth business up the that a see this that first -- model only have be strong we The market people the days, where XX signing We that by is entered, of market. widespread enter also notable look how kind we beginning call really on days, this a at And many place. of days, And further way we how a -- emerging in followed. we number but XX growth continues see Spark have in submission. number are train, that in start and strength places sequential what it people XX to is primary growth beginning many the model geography now they expansion, cases and we is see

that with We margin the approach We're got confident we We that think year. to Product we're the The of balance growth taken. grow expansion in and that we to we to to going continue throughout capabilities we the be this level make proven do. superior. business. have go sure as that is support

specialists we so. team on has have less have confident is I'm Bracken of I you're customers. an a just referring been an of and little from plenty in where our we active new past possibilities not to really feel sure ahead, the the But today still than X in focus the traditional who room block Spark done The been, To work and in excited bit that's think a years the our and view, have -- only orthodontist insight Ormco, exactly Jon, it to or we give to that XX% various point you are focused about wireless kid of of about we grow. and pretty geographies. really

portion there been opportunities or that space, have So is lot to of are haven't a to yet plenty yet other after the opportunity other of there entered in engaged go we we and that haven't it.

second the component the a the just little But follow that I'll up about I just I'm focus solid on honestly, the bit Elizabeth gross [indiscernible] was let quite maybe highlight Q-over-Q. onetime, in for was was thought a what quarter. asked Stephen, question. maybe It confused there. SG&A, And me on off-line up margins.

You as you higher cost that business. do the base in reinvest have

little you give us color trajectory of can gross bit from more margins here? the on So a

that spark trying those growth improving to in throughout particular XQ starting year? just XX those I'm do but balance use margin. And you also we think the faster lower-margin move of the point? higher sort new division, Do

can guess for out I on help us year. from yes of So GMs with the the -- if balance here trajectory you the

the there's speaking, little bit gross expect in -- Yes, margins. go rest it to But improve our sure. through of normal obviously, margins And as to margins the of gross would our we the seasonality seasonality again, to patterns. you improve, some with year, a generally

an back improvement that continued America North to kind growing also of implants that start growth, to And level we margins in then extent market Fundamentally, be what being a the to margins. driver this. Spark big of going is will you're see in improvement our the

distribution that of that the security That had because in of was North hit issue significantly American consumables again, depressed. to the at a margins quarter. in Obviously, lower cyber very sales the QX lot channel. partly were [indiscernible] related

So you margin should see the and progression positive throughout year.

if I of sorry piece, those of bit about XX% confused just kind be more. of could was are kind we a in a And say, about will that Hopefully, million and to that the XX% and that of investments $XX clear clarifies -- made, little be sorry of little investments you SG&A onetime that about was nature. bit ongoing about on it

We'll take our Baird. Johnson question next Jeff from with

in thanks Paul, I've for That's investment. conversations just welcome, Amir, dental your insights all over for the years. appreciated a the SG&A ask question space. $XX the sure. million Stephen, let me that on

the last going think we some XQ but wouldn't I or that investments would heard necessarily then quarter, were them you in could added you from team that leveraged there forward. be leverage --

it So added XQ were investment. of the top on like investments sounds there

think or how So about that kind I of last And of next the few how the or over trying even could just much guess, the a maybe has plus XX% the quarter. we're talking figure base quarters? go give -- to the I guidance something? us of XQ, we're continues. without months you're all been Again, X minus in Where $XX months, X invested over here, much number million first out to EBITDA you it maybe

Yes, sure.

those in this quarter. the some who full impact -- the full the of impact of then made quarter that we of people. we And were fourth throughout investments look, quarter added had the were So quarter, the year in people or

first we QX. $X investments, in between million I probably in million than bit made little probably but a the $XX QX think in -- million to So less $XX

of So onetime in that forward $XX probably in cumulatively, made to $XX of level, about it should again, investments. XX% million rate we be around and the And million -- nature. same run probably at was in going about thing about it XX%

arch Yes. butt that on And the issue tend my disagree Fair price X last that quarters, bundling pretty started or market, know I and at on what or have checks push I X active over implant couple the to an hearing that it especially least North that. weeks. least just and heads accounts, last you enough. Amir, mobile But it. on American concessions going in the some I'm at suggest I'm Maybe some multi-implant those in primarily sizable to and hearing I checks, of full only in in then, implants. select the would multicase I've pushed

Your XQ been what on in especially I gross better the Jon, pricing of hearing margin agree side. in. with the than did hold context I thought, I've

maybe was gross could Stephen's comment of bit down I'm the So is My a improve a fear given XQ would pricing here? little from things take margins that some step hearing.

that me straight you of just or hearing. what I put that together, wrong set again, But of So kind Tell dead why me I'm will. on kind if maybe again, all know I'm

So trying margin gross I'm of implant progression American the the in to out kind just North figure business. pricing and

Yes.

to going Of wrong. not you're I'm course, say dead

You very [indiscernible] knowledge.

price erosion. China is QX homework, basis points XX a You did This your all was [ homework in primarily you do we in saw as of ] the VBP. time. about What

of happened of look limited year. in had QX If China very we last you to business growth in this and year, what a lot QX at of a

overall our So EBITDA margin. that has and had an impact our impact in in

your And our business, question impact [ is price America but not some also We're we and ]. some -- North seeing around equipment erosion yet. in primarily saw it

seen have We not that.

have in We in seen growth, it QX. trajectory it issue the QX, didn't issue, us price for our on We an it see haven't some to been trying in not has but we we're -- improve performance here.

because this necessarily price, that not little has the a have price that arch, we because continue Specifically of bit to specialized and we $XX,XXX. costs see and market type of of to muted. the the of procedure Nobel very a been That full because pricing, on erosion, approach disciplined to side $XX,XXX

think is us. only And this this I is -- don't

challenged answer seen it. been has market the but underperforming, are your We question, haven't well. to we as But

a information. the referral not have the you there's premium we it across have But constantly We to erosion with hear board, -- visibility large you're where who constituencies, have getting specialist monitoring love to a that it. we and price I'd on a implant. seen network, have

seen not have a erosion. We price

question with We'll next UBS. Kevin Caliendo from our take

different do a dental -- think and ] growing all growing growth? talk -- publicly can little traded about implants market I the growth, into When maybe is back the And market seems increasing year [ in half want Like market is a They're the in their context. it we what about faster bit, getting providers. implants what the this if implants to you and but in you we next year. to second of talk too, share talking in now? about

be? it's the you I a matter know And is you What trying I'm those numbers expect depressed when you now? to is that to understand currently, education, matter a guess it's to but it targeting? of is the we are guess, industry what -- to currently of are I is growth, what as talk getting be I once constructed? for are, aiming think more it growth what Do we simply people what do is better needs field. simply Again, the And just half rate where in exactly portfolio understand get industry it there to about back we that of that second your in

then But let's a you, I'll just question. answer back little the Thank Kevin. good look Really question. bit, and

talking find that companies X% got we're a mid-single The digit, of So to X you what of growing only major X%. back, single if premium is go impact. we've X- volume. and to a low will Volume the transition, horizon, implant X-year been you digit, part constitute has --

the So been growth. volume that has

have is volume, about more been call significantly. has down coming X% to side but or what been that prices of we space. newcomers equation, That And that growing X% the value which in other the

is So and value the perspective the of premium from a same. almost size the the dollar

look the a Take traditionally. that's at traditional. So

I a question. you implant plays there At shows and answer your Now of that each in geography. quarter, what's end last the months, number let in XX each me of are tell publications the going

So X% implants placed X.X single implants. we know was the it the are in in we growth. to We year, half XXXX, million digit, the were half the year first North -- of talking premium of America. first low know In X%

implant, you muted large implant implants, what a of we as year the are multi-unit a have number A flat. to market to in of arch was information, as were exterior full a is think QX the of half placed of We of well Second about don't single yet year, almost the the multi-implants. full versus half implants seeing of And but second of more the from arch. goes that The flat. number compared interior of XXXX number a volume

when is full past. $XX,XXX what by the arch as market, what that's as driven uncertainties the The rate, we number the driven $XX,XXX, seen of fast not happening, see. growing to have a in you're by So is going in not interest

or in to -- So the market market at be growth, year. X what we that have performing America either quarter gap close past this What we at North that of outside know say when do We end want expect North the we it to we expect? by above we we have seen we in to X America. that

answer know question? your year. performing North that goal also that We of close have our I this been and market America by Did we below to in growth gap end

I in to purely think for guess that continues? is second you there value helpful. economic, trend recover? that was a super you I point premium felt longer think there. do the think the that versus said, Or It here Like period year, much half been as the of does the how time? do is incremental of stay of Like consumer-driven? of that an inflection question you that's is, like

[indiscernible]... Do you think

[indiscernible]

mistaken. the got XXXX, earlier into a than we lot premium. Direct, We plan Implant Kevin, if I'm bought valuing not

XXXX.

take amount XXXX. since significant growing. out is case. it segments that that of was through share XXXX. not is are been have we And recognize at we the the And value a the our X hypothesis that to Both of at premium. years implant time going process,

the take uses use that premier. really look $X,XXX us who different, and as are in opportunities implant than candidates for of significant are is That charging if of we are plenty growing placed lot the are at but is Less value for premium think growth. gives has value. a than every good We of The the and fast, growing XX can values of an use XX in premium faster, all seen bond. side a plenty We've growing million people growing, implant that haven't segment not XX% for it, that value. on full are they because are using erosion can look. are see But single the XXX,XXX,XXX who we over are them opportunity they as seen. more The seen to Arch, both prices Over for People value implant. today use value because a being bridges unit not These charging $XX,XXX market opportunity it that dropping, to there. targeted market dentures. it. premium this year, different $XX,XXX years, we the prices People that impact. is think that they're that has to you group segment, very using the of the So the $X,XXX premium people the group both have hanging as this of well is of

We'll question from William with Blair. take next Vazquez Brandon our

high-level of first I question. just like wanted to a kind ask

to past the Over job deliver a from expansion. several the of great costs business done have years, margin removing kind on guys of some you

what kind back at some took point bit to of much we the where, business you of to we little being, have side in we're I issue as you of costs that you guess, back margin example, need rates back, think part question that the these business. Now potential in of do under line? the market add means of and order taking for was the to cost the to out top a add of for reaccelerate the arguably, investment the get implant by growth of cost the a out

the for question. thanks Brandon,

this have things. to I separate you X in think different

the past did a I those adding coming a too some it's Nobel probably in, we now. efficient in our -- and back are -- thought and got and more probably And about we've -- specific we were think probably of probably Nobel calls we seeing that. false signals North a resources, to little bit we when from deep COVID, commercial we did we on and little America, around cut -- talked some bit of we you're that's out what

opportunities -- the $XX over why to see structural streamline our is going of level, one long to continue of I terms forward. of goals the to do cost think costs million we That's take In term. incremental here out cost here overall

and need long see implants little reduce opportunities North So of then to more And two it's some We a we at of make to bit to to American costs. term, reduce reinvigorate particular. opportunities growth need efficient. look in tale we things. short-term in do be investments costs to And

need be where just we're careful We to about efficient. being

efficient making investments. are in We very the sure, making we're and sorry, -- or G&A SG&A be and then sales marketing right

in for implants? impact you And in financial a about quarter maybe follow-up, then there? then for guys VBP can was area is were It a ] going under that think China. could little nice to there? And being seeing China half. And Conversely, last you gears what second a you're about bit Can little talk expectation? talk growth you I still -- Is the just talking Ortho in your [ so, we like Okay. switching in be looked if the that growth bit sustainable my about How that implants. where

our sales XX%. QX, Yes, In saw China of increase by in over course. we

muted but implant and piece. what So of the a easier is are But reason threefold. for earlier, because it of throughout at we're of implant comp looking we what was mentioned placed. number -- is course, What is seeing QX, of what QX ramp-up VBP COVID really And it we're an was are really, the China. as seeing we is because the of in

and closed. gap VBP. One, price that has between been the of premium value Because the part

of it's So that a between huge the price. difference not

almost part the a implant X-unit of now versus is Second price same. [indiscernible] about the a bridge, it's

that X- And last permanent that. more of see able the to as more of as value to doing of well do least, now clinicians a solution versus a beginning people to see are X-year. not lifetime placing lot implant people value being the a but So and an

potential So and and of the about long growing but is potential. VBP side, institutions, major now the the as for time, we're premium well. the bullish ABT market run. with universities and China the first of really that accepted X It's underpenetrated of impact brand, is our tremendous Not only value an as part on amount in

So feel business of see it little on to in gives expect we the a a what for us implant China. bit

gave the to customers. the but Their in that have is amount a now sometimes how during Ortho we China were on this half Our not we second manage they long be of ago. talked approach for a of took expectation share that a expectation the implant that in on can really right is We we any tremendous the with side to don't format. going to but detail -- insight you, VBP lot structured

expect see We to in that second half.

our China recognition the we growth in in but that and contemplated. think term, that for of of have because have driver brand We be to And It we -- capabilities the is plan. in continues China. a long under because penetration Envista

next from Goldman our take Rich, We'll please Sachs. question with -- Nathan

years. ask the all consumables Amir, help on welcome working the to to And business. you. I with over for thanks wanted Paul, the look to you forward

U.S., geographies that elaborate just specific have Could feel quarter? about what adjust of also the maybe talked maybe color seeing. about you in in the demand you And. Then something you're weaker highlight? be can there? in price Any some you kind like would you Are that -- actively seeing think Is a share some dentistry there on you there maybe the expand great. that Could outside markets. managing you I of pricing? those down? talked you think I saw bit would Were you you to you where

you, Nate. Thank

distributors with relationship give notice, that the partnership because have start the and prices we We partners from and radically. Let pricing XX perspective. days to It's me happen normally advance. them don't normally our in of XX

Ortho. of in and a land it's lay like little to implant different the bit of compared a So here

price So we good to position. see continue

We have with relationship great a our partners.

the some program. we We we that the there QX little as key saw a QX. Stephen talked investment we supplier have have because But issues, made delay bit was saw in of a cybersecurity about, what in of -- in

we that medical mid-single channel. lot only was grew significant saw because but And the the on on of it also part. increase, a Our QX. pricing of prevention growth in infection not a digit

to a decline managed fact partners really perform Our a saw be board. that we well in in flat. QX, was across more given here, and able in the continue restorative really And Endo deliver our double flat by are after business we inventories well the And digit approach. to

our continue see information We information, good have market. the really solution we and outperforming to that sell-out are where we

good -- half, momentum the on America, business Europe. had where because couple day side, working of in geography continue in followed there. issues day a QX in But been portion in see in A fall a less and We Easter days QX. comes and two to In very we focused. have we a our North Europe, of

a the had So a not bit of of because necessarily of but little there, timing we of challenge was in sellout. it. because It the

have seen world. the think go around most that we And that think We'll we our great continue Resto the XXXX. throughout go we think going that performance, as great up We be markets continue bounce to And we've pretty world about product, this good we through going is Endo to business. back got we our relationships bullish outperformance in with as distributors. is to

Nobel of helpful. to the and expect the something has got have just time underway follow-up. you you joined. quick a [ that Underway that process. of rough for a searches ] for that Are as roles. able line sense Is kind these Or us sort of the Paul been should That's Maybe we CFO now us that give have Great. in

to I there hard would -- Just add you but specifically, anything know say it's great. probably be can

Of course, Nathan.

number to a a can [indiscernible] they you work Paul little as in have a But who transition of is underway. with. they strong because search candidates like CFO in involved. partner And active a with, been know We who have actively was we delay given really the here of there of have really bit imagine, Board and the

a going search CFO both can on we think quickly. Nobel the as an talent I on to really place, and as CEO the side. candidate have we in appointment and come is that well for that the really with Now Paul top to as accelerate permanent help

to I'll the it the people We Paul the a is have Nobel position of an Nobel. talent as we team for on to an years build management in momentum seen that underway build and have We've forward to to coming of communicate top active And continue for make this to come. the leave brand. forward. continuing lot are and to that search here legacy go sure incredible in they we

program This back turn comments. session. any to closing Stephen Keller does the our Q&A I'll for conclude

a Thanks, looking the and today. in later will be quarters forward time up everyone. I get coming really the at involved he's to for with working appreciate investors setting business. all much. the date chance time obviously, We're Thank with look, to so in Paul you we had once years. . a fully you

Thank This does for your you conclude you program. today's and participation, now may disconnect.