Ann: Trading Update, page-6

I'd add a few more to the list of concerns:

- 200bps gross margin contraction - it was accepted as common wisdom that amalgam was the lower GP product, hence it was expected that GP margin would tick up as amalgam sales went down. That's not happening.
- Brazil/SA continues to flounder long after the Brazilian packaging facility - which was supposed to be the turnkey to unlocking the SA/Brazilian growth opportunity - was opened.

I'll admit to being a little torn over my small SDI position. Outside of amalgams, the underlying/structural growth rate in dental consumables is growing at high single digits so i like the market dynamics, but there's plenty i don't like specifically about SDI.