Dentsply Sirona Inc (XRAY) Reports Modest Revenue Growth Amidst Net Loss for FY23
Net Sales: FY23 net sales increased by 1.1% to $3,965 million, with organic sales growth of 2.2%.
Net Income/Loss: FY23 reported a net loss of ($132) million, or ($0.62) per share, an improvement from a net loss of ($950) million in FY22.
Adjusted EPS: Adjusted earnings per diluted share were $1.83 for FY23, down from $2.09 in FY22.
Q4 Performance: Q4 net sales rose by 2.9% to $1,012 million, with a net income of $67 million or $0.32 per diluted share.
Dividend Increase: The quarterly dividend rate was increased by 14% to $0.16 per share of common stock.
FY24 Outlook: Anticipated organic sales growth ranging from flat to up 1.5%, with adjusted EPS expected to be between $2.00 and $2.10.
Dentsply Sirona Inc (NASDAQ:XRAY), the world's largest manufacturer of professional dental products and technologies, released its 8-K filing on February 29, 2024, detailing its financial results for the fourth quarter and full year of 2023. The company, known for its comprehensive solutions offering including dental and oral health products, navigated a challenging fiscal year marked by modest revenue growth and a significant net loss.
Fiscal Year 2023 Overview
For the full year 2023, Dentsply Sirona reported net sales of $3,965 million, a slight increase of 1.1% compared to the previous year, with organic sales growth of 2.2%. Despite this growth, the company experienced a net loss of ($132) million, or ($0.62) per share. This loss includes non-cash charges for the impairment of goodwill and other intangible assets amounting to ($302) million. However, this represents an improvement from the net loss of ($950) million reported in FY22. Adjusted earnings per diluted share for FY23 were $1.83, a decrease from $2.09 in the prior year, reflecting the ongoing challenges in the market.
Fourth Quarter Highlights
The fourth quarter saw a 2.9% increase in net sales to $1,012 million, with organic sales growth of 1.9%. Net income for the quarter was $67 million, or $0.32 per diluted share, a notable recovery from a net loss of ($15) million in the same quarter of the previous year. Adjusted earnings per diluted share for the quarter were $0.44, slightly down from $0.46 in Q4 of 2022.
Segment and Geographic Performance
Performance varied across the company's segments and geographic regions. The Orthodontic and Implant Solutions and Wellspect Healthcare segments showed notable sales growth, while the Connected Technology Solutions segment experienced a decline. Geographically, the United States market showed a modest increase in FY23, while Europe faced a slight decline.
Financial Position and Dividend Increase
Operating cash flow for the fourth quarter was $160 million, an improvement from $142 million in the prior year. The company ended the year with $334 million in cash and cash equivalents. Reflecting confidence in its financial position, the Board of Directors approved a 14% increase in the quarterly dividend rate to $0.16 per share.
2024 Outlook and Investor Relations
Looking ahead to FY24, Dentsply Sirona anticipates organic sales to be flat to up 1.5%, with adjusted EPS projected to be between $2.00 and $2.10. The company remains committed to delivering value over the long term and views 2024 as a potential inflection point for improved profitability.
President and Chief Executive Officer Simon Campion commented on the results, stating:
"We delivered on our outlook with three of our four segments posting year-over-year growth in the fourth quarter and full year 2023. Dentsply Sirona's transformation is taking shape, and while there is more work ahead, we expect that 2024 will be an inflection point for improved profitability and adjusted earnings per share growth. We maintain our conviction that we are on the right path to deliver meaningful value over the long term."
Investors and analysts are encouraged to review the detailed financial tables and reconciliations provided in the earnings release and to participate in the investor conference call and webcast for further insights into the company's performance and strategic direction.
For more detailed information about Dentsply Sirona Inc (NASDAQ:XRAY) and its financial results, please visit the Investors section of the company's website or contact the investor relations team.
Explore the complete 8-K earnings release (here) from Dentsply Sirona Inc for further details.
This article first appeared on GuruFocus.
