The following is a summary of the Envista Holdings Corporation (NVST) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Envista reported Q1 sales of $623.6 million with a core sales growth of 0.4%.

• The adjusted EBITDA margin was 14%, primarily affected by lower gross margins and investments.

• Gross margin decreased by 70 points due to an unfavorable product mix and pricing.

• Adjusted diluted EPS for Q1 was $0.26, down from $0.38 in the same period of the previous year.

• The company generated $29.3 million as free cash flow, showing a significant improvement from the last year.

• Planned structural cost improvements should amount to over $30 million, the full impact to be seen in 2025.

• Q1 saw total investments worth $10 million, about 30% of which were one-time spending.

Business Progress:

• Specialty Products and Technologies segment recorded a 0.8% sales increase.

• Implant business showed a slump in Q1 but was partially offset by strong growth in China.

• The orthodontic business, led by Spark clear aligners, grew in low-single digits.

• Actions were taken to improve North American performance, including strengthening leadership and upgrading training capabilities.

• Plans to accelerate implant production in North America aim to match market growth by the end of 2024.

• Major investments, centered on training, partnerships, and Spark activities, aim to drive margin improvement and grow the implant business.

• Aggressive plans are in place to bridge the growth underperformance in the North American implant market by year-end.

• The company sees strong growth potential in the China market, as the price gap between premium and value products is narrowing.

More details: Envista Holdings IR

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