DENTSPLY SIRONA(XRAY)2023-02-28 16:00Revenue and Sales Performance - For the year ended December 31, 2022, Technologies & Equipment (T&E) net revenues represented approximately 59.1% of worldwide net revenues, while Consumables net revenues accounted for 40.9%[19]. - The net sales for each product category as a percentage of the Company's total net sales for the year ended December 31, 2022, were: Equipment & Instruments 17.3%, Implants 14.5%, CAD/CAM 12.8%, Orthodontics 7.6%, Healthcare 6.9%, Endodontic & Restorative 29.8%, and Other consumables 11.1%[29]. - Net sales for DENTSPLY SIRONA Inc. decreased by 7.3% year-over-year, with an organic sales decline of 0.5% for the year ended December 31, 2022[200]. - The company reported a net loss of 411 million in the previous year, primarily due to a goodwill impairment charge of 517 million, down from 93 million during 2022 relative to 2021 due to COVID-19 restrictions and reduced patient traffic[206]. - Approximately 3% of consolidated net sales came from Russia and Ukraine, with net assets in these countries totaling $83 million as of December 31, 2022[206]. Product Innovation and Development - Dentsply Sirona's new product innovations accounted for approximately 14% of 2022 sales, highlighting the company's commitment to continuous product development[38]. - The company unveiled its cloud solution DS Core in 2022, developed in collaboration with Google Cloud, to integrate digital dentistry workflows across its devices and services[37]. - Dentsply Sirona's R&D investments focus on accelerating product and clinical innovation, with an objective to achieve more frequent development and release cycles[39]. - The Company invests at least 4% of annual net sales in R&D, focusing on innovation and digital technology[41]. - The company identified new products as a critical part of its growth opportunities, but faces risks of product obsolescence due to rapid technological advancements[101]. - Dentsply Sirona's Orthodontics product category includes the SureSmile aligner solution and the Byte direct-to-consumer aligner solution, reflecting its focus on innovative treatment options[25]. Market Presence and Strategic Acquisitions - The company has a significant market presence in over 150 countries, with a strong foothold in Europe and the Asia-Pacific region[20]. - Dentsply Sirona has made strategic acquisitions, including the purchase of Datum Dental for OSSIX bone regenerative collagen and Propel for VPro aligner treatment devices, to enhance its product offerings[38]. - The Company completed several acquisitions in 2021, including Datum Dental and Propel, to enhance its product offerings and market position[43]. - Byte, a leading provider in the direct-to-consumer aligner market, was acquired on December 31, 2020, expanding the company's market presence[159]. Operational Efficiency and Challenges - The Company aims to leverage its global scale to improve operational efficiencies across procurement, logistics, and manufacturing[40]. - The company is undergoing organizational restructuring to enhance profitability and operational performance, which may involve significant costs and risks[113]. - The company has implemented strategic procurement initiatives to leverage alternative sources of raw materials and transportation[211]. - The company faces risks related to obtaining necessary product approvals and marketing clearances from regulatory authorities like the FDA[144]. - The company relies on a limited number of suppliers for key products, which poses risks of supply chain disruptions and manufacturing delays[103]. Financial and Regulatory Risks - The company identified material weaknesses in internal control over financial reporting, which could impact the accuracy and timeliness of financial results[78]. - The company restated certain previously issued consolidated financial statements, which may affect investor confidence and incur unanticipated costs[78]. - The company is subject to ongoing SEC investigations and several securities class action lawsuits, which could harm its business and financial condition[87]. - The company faces risks from litigation and claims, including potential securities class actions and product liability, which could harm its business and cash flows[171]. - The company is exposed to evolving privacy and data protection regulations, such as the GDPR, which could result in significant fines and compliance challenges[100]. Employee and Corporate Responsibility - The Company employs over 15,000 employees worldwide, with a focus on attracting and retaining talent through diverse programs[59]. - The company aims to achieve global gender pay equity and gender parity by 2025, as part of its sustainability program[64]. - As of December 31, 2022, the company established seven employee resource groups with approximately 2,000 members globally, focusing on talent development and employee engagement[66]. - The company is committed to sustainable operations, investing in employees, customers, and the environment[40]. - The company has a dedicated Employee Health & Safety program aligned with international standards, ensuring employee safety and well-being[70]. Economic and Market Conditions - The company is exposed to risks from changes in global economic conditions, including inflation and supply chain shortages[84]. - The impact of inflation and rising interest rates has pressured customer financing for equipment purchases, affecting sales volumes[210]. - Changes in foreign exchange rates may adversely impact the company's consolidated financial statements, as approximately two-thirds of sales are outside the U.S.[139]. - The company faces challenges related to reimbursement levels from third-party payors, which could lead to revenue declines[150]. - The ongoing COVID-19 pandemic has negatively impacted business operations, particularly in China, leading to distribution constraints and reduced patient traffic[164]. Environmental and Social Governance - The company is committed to diversity, equity, and inclusion, with a strategy focused on embedding these values into its culture[63]. - Expectations regarding environmental, social, and governance considerations may lead to potential liabilities and increased costs for the company[176]. - Climate change and natural disasters pose risks to the company's operations, potentially disrupting production and distribution across its global facilities[174].