Getinge Interim Report April-June 2024: Higher sales, stronger margins and product launches with significant added value for customers

“Net sales increased by 15.7% in the second quarter, of which the organic increase was 8.9%,” says Mattias Perjos, President & CEO at Getinge. “The operating margin improved compared with last year due to strong sales and a positive product mix, which supports a solid financial position that enables investments in profitable growth.”

Getinge’s order intake increased by 14.4%, of which organic growth was 7.8% due to positive performance in all business areas. Investments in the product portfolio is a fundamental piece of the medtech company’s strategy and during the quarter numerous important new products were launched.

“One of these was Poladus 150, an advanced low-temperature sterilizer that meets a significant need for our customers. From a regulatory perspective, we received a 510(k) clearance for Talis innovative software, which offers digital clinical decision support, and our Advanta V12 covered stent system received EU MDR approval. Life Science launched the GEW 888 neo washer that increases cleanroom efficiency and helps reduce water consumption by 20%. In addition, a new version of the DPTE-BetaBag® was launched. This new version is made of plastic from renewable sources, which reduces the carbon footprint of the bag without compromising its sterile transfer capabilities,” says Mattias Perjos, President & CEO at Getinge.

On May 8, the FDA sent a letter to healthcare providers in the US relating to the Cardiosave intra-aortic balloon pump and the Cardiohelp ECLS system. The letter did not refer to any new field actions, but users were recommended to change to other alternatives where possible.

“We take this very seriously and therefore suspended active marketing of related products in the US. Since then, we have accelerated improvement measures and the schedule for the next generation of these products. We are in close dialog with customers and the authorities, but it is too early to see any specific sales trend in the short term,” Mattias Perjos explains.

During the quarter, Getinge also submitted an application for CE certificate approval for new packaging for the two ECMO therapy consumables (HLS and PLS sets).

The operating margin improved compared with last year due to strong sales and a positive product mix.

“This supports a solid financial position that enables investments in profitable growth. I look forward to continuing our work in the second half of the year to create value for our customers in their important commitment to deliver more and better healthcare to more patients,” says Mattias Perjos.

April-June 2024 in brief

• Net sales increased organically by 8.9% (1.3) and the order intake rose by 7.8% organically (-4.5).
• Adjusted gross profit amounted to SEK 4,151 M (3,314) and the margin was 50.0% (46.2).
• Adjusted EBITA amounted to SEK 981 M (495) and the margin was 11.8% (6.9).
• Adjusted earnings per share amounted to SEK 2.29 (1.09).
• Free cash flow amounted to SEK 289 M (276).
• Financial target was updated during period to: Average adjusted earnings per share growth: >12% 2024-2028

Phone Conference

A conference call will be held on July 18, 2024, at 10.00-11.00 a.m. CEST hosted by Mattias Perjos, President & CEO, and Agneta Palmér, CFO.

To participate via teleconference, please register via this link. After registration, you will be provided with telephone numbers and a conference ID to access the conference. You can ask questions verbally via the telephone conference.

During the conference call a presentation will be held. To access the presentation through webcast, please use this link. A recorded version can be accessed here for 3 years.

Contact information:

Lars Mattson, Head of Investor Relations
Phone: +46 (0)10 335 0043
Email: [email protected]
 

This information is such that Getinge AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, on July 18, 2024, at 08:00 CEST.

About Getinge

With a firm belief that every person and community should have access to the best possible care, Getinge provides hospitals and life science institutions with products and solutions that aim to improve clinical results and optimize workflows. The offering includes products and solutions for intensive care, cardiovascular procedures, operating rooms, sterile reprocessing and life science. Getinge employs approximately 12,000 people worldwide and the products are sold in more than 135 countries.