DENTSPLY SIRONA Inc. (NASDAQ:XRAY) Q4 2022 Earnings Call Transcript

Unidentified Analyst: Hi guys. This is Tom stepping on for Jon. Thanks for the questions. I’ll start with 2023 guidance. Glenn, maybe this is for you. But how should we be thinking about T&E and consumables organic growth, I guess, relative to the total company guidance of down 1% to up 2% between Implants Ortho, it sounds like T&E will be the growth engine. But, I think it would be helpful if we could put a finer point on where that may shake out in rough terms, I guess, is each segment within the total company range, or how should we maybe think about them maybe reaching the high end and low end of it potentially?

Glenn Coleman: Tom thanks for the question. We’re not going to give too much specifics on our segment guidance. I would just say we are expecting T&E to grow faster than consumables as part of our guidance range. But that’s all we’re going to comment on at this point in time.

Unidentified Analyst: Got it. And then my follow-up is just on the restructuring. Simon, you gave some very helpful color throughout the call. But can you maybe talk a bit more about the current restructuring and how it may be different from the prior ones for the company. I guess, what were the learnings from those that you’re trying to apply this time around? And maybe what gives you confidence this won’t potentially be more disruptive than expected, and maybe ultimately have some sort of impact on growth. Thanks.

Simon Campion: Yeah. Thanks for the question. So, we’ve been very thoughtful about this restructuring. You will have hopefully noted that we are not impacting our sales teams at all. In fact, we’re net positive on investments in our sales team globally including Europe and the US. I think the difference is, we’re here, we’re being extremely thoughtful about it. We are driving alignment between our RCOs, between the regions and the global business units. And we are giving the global business units a single voice. So communications is going to be better between the business units and the regions and decision-making and agility is going to be improved because we have — we now have more visibility to all of the financial aspects of it and we can move money around as appropriate to fund different investments either commercially or R&D or in other spaces like plan, quality and so on and so forth.

So I think it’s meaningfully different to what was done before. We — as we noted in the prepared remarks as well, I think the tone at the top is a very material change here as well. And again, in the prepared remarks, we commented on some of the feedback that we’ve received from the US commercial team, in particular, where some of those metrics have doubled in the past six months. So we are changing the tone here at the company, and we’re being transparent. We’re being inclusive. We’re driving discipline and improving process and making investments to make this company a better place to work and a better place to deliver results that you expect and that we expect.

Unidentified Analyst: Very helpful. Thanks.

Operator: Thank you. One moment for our next question, please. And it comes from the line of Michael Cherny with Bank of America. Please go ahead.

Michael Cherny: Thank you for taking the question. I’m going to wrap a bunch of topics, I think, into one here. But as you think about the trajectory and particularly the build into that $3.26 number, I’m not looking for how you think about the revenue dynamics, but how do you think about the mix in terms of your focus on going direct versus not going direct. We heard from one of your key distribution partners yesterday about their desire to build out their own specialty business. And so how does that impact view of X-rays go-to-market strategy and what you can do to take control of more of your own destiny versus rely on your distribution partners as you think about this multi-year build?