Nobel Biocare announced today the continuation of its functional re-alignment program, affecting primarily the corporate functions in Gothenburg, Sweden. The company has initiated an appropriate and responsible negotiation process with the respective local labor unions. This re-alignment does not affect the Nordic commercial entity located in Gothenburg, nor the manufacturing sites in Karlskoga and in Stockholm.
In 2012, Nobel Biocare initiated a continuous efficiency and effectiveness program of which part of the benefits are being reinvested to build market share through innovation, customer partnering activities and training and education efforts. Globally, over 250 positions have already been successfully re-aligned and over 70 positions reduced since mid 2012. The company is now moving to the next phase of re-alignment.
Approximately 70 employees in Gothenburg are involved in this next step over a period of 18 months, which will include relocation and early retirement offers. This process will reduce the complexity of the organization, streamline processes and improve communication within the group. It will result in some further headcount reduction in the group over this period. Estimated additional non-recurring costs of EUR 6.2 million for departures, severance, relocation and retention will be booked in the second quarter 2013.
These measures will not change Nobel Biocare’s short-term revenue outlook, which remains to target modest market share gains and to deliver modest revenue growth in 2013. Subsequently, barring any unforeseen events Nobel Biocare expects to deliver an EBIT margin improvement of 50 to 100 bps at constant exchange rates (CER), excluding the above stated additional non-recurring cost.
Within the next 3 to 5 years, assuming markets improve beyond 2013 to modest mid single-digit growth, Nobel Biocare targets growing at least in line with the market and improving the EBIT margin also continually between 50 to 100 bps per annum at CER.
Nobel Biocare is a world leader in the field of innovative implant-based dental restorations. The company’s portfolio offers solutions from single tooth to fully edentulous indications with dental implant systems (including key brands NobelActive®, Brånemark System® and NobelReplace®), a comprehensive range of high-precision individualized prosthetics and CAD/CAM systems (NobelProcera®), diagnostics, treatment planning and guided surgery solutions (NobelClinician® and DTX Studio™) and biomaterials (creos™). Nobel Biocare supports its customers through all phases of professional development, offering world-class training and education along with practice support and patient information materials. The company is headquartered in Zurich, Switzerland. Production takes place at six sites located in the United States, Sweden, Japan and Israel. Products and services are available in over 80 countries through subsidiaries and distributors.