Envista Holdings Corporation (NYSE:NVST) Q4 2022 Earnings Call Transcript

Amir Aghdaei: Yes. Thanks, Nathan. We put those targets back in Q1 of 2021. We had made a series of assumptions. The assumption that we are going to meet some challenges along the way our clear aligner is going to continue to grow that 3x target that we put out there. We knew that margin is going to improve over time. Nothing that we have seen in the past 12 months really had changed our view that those targets that we communicated in 2026, high-single-digit, 22.5%, north of 22.5%. Nothing that we have seen has changed of view toward that. And momentum that we saw in 2022, specifically with some of the challenges in Q4, despite up all of that coming in producing result that we have produced gives us the confidence that fundamental capabilities that exists in this company around continuous improvement remains alive and well.

So, walking into 2023. We got exactly as you highlighted some of VBP challenges, Russia, China, we have contemplated that. We made the assumption that these lingering issues are going to stay with us. They’re not going to quickly go away. We develop a set of scenarios from best case, a worst case scenario, soft landing. And what we think that mid-single-digit growth above 20% EBITDA is something that it is achievable. If we have upside, we will see as we go through the year to see how the market evolves, but based on visibility that we have today, based on the information available today, we think targets are really achievable. The continuous improvement, cost reduction improvement in our margin is just in our DNA. We’re going to continue to do that regardless of what we see in the environment.

And we have plenty of opportunities. You just saw that what we did with Howard communicated in Q4. We have a year ahead of us, plenty of opportunities to become better in what we do to build a better relationship with our customers, to improve our commercial execution, and to march down the path of long-term strategy of digitizing democratizing, personalizing, this industry, make a meaningful difference and we’re committed to it. We have method and tools to be able to execute on.

Nathan Rich: Great. Thank you.

Stephen Keller: I think with that €“ sorry, I think with that. Yes, really appreciate it. So, thank you very much. Appreciate your interest in Envista and we look forward to connecting with you at future events. Thank you.

Operator: Thank you ladies and gentlemen. This does conclude Envista Holdings Corporation’s fourth quarter 2022 earnings results conference call. We appreciate your participation.