Getinge Interim Report January-September 2022: Strong margins but organic growth outlook lowered to minus 3-6% for 2022 due to external factors
“The order intake and net sales declined organically by 5% and 2.6%, respectively, during the quarter,” says Mattias Perjos, President & CEO. ”As a result of the overall uncertainty linked to these external factors, we are lowering our outlook for organic sales growth, which is expected to decrease by 3-6% for the full year 2022”.
The main reason for Getinge’s declined order intake and net sales in the quarter is the result of elective surgeries at hospitals not having recovered to pre-pandemic levels and the challenging comparative figures for COVID-19 treatment products and vaccines impacting Acute Care Therapies and Life Science negatively. Getinge sees a continued positive trend within the product categories that were negatively affected by the pandemic.
Getinge is also impacted by supply chain challenges, which resulted in negative effects of at least SEK 400 M on sales. The uncertain situation regarding demand in China, for example, linked to pandemic-related restrictions, also had a negative impact on Getinge’s order intake and sales for the quarter.
“The single largest challenge facing our customers at the moment is increasing capacity in elective surgery,” says Mattias Perjos, President & CEO Getinge. ”This means that the underlying need for our products, which make a big difference in the hospital’s work, has increased rather than decreased”.
Higher productivity and positive currency effects helped keep margins up in the quarter. Based on current uncertainty related to external factors, Getinge lowers its outlook for organic net sales to minus 3-6% for 2022.
July – September 2022 in brief
- Net sales declined organically by 2.6% and the order intake declined organically by 5.0%.
- Adjusted gross profit amounted to SEK 3,592 M (3,334) and the margin was 51.8% (52.9).
- Adjusted EBITA amounted to SEK 1,170 M (1,160) and the margin was 16.9% (18.4).
- Adjusted earnings per share amounted to SEK 3.10 (2.96).
- Free cash flow amounted to SEK 1,005 M (1,380).
- Changes to Getinge Executive Team: Joanna Engelke was appointed new EVP Quality Compliance, Regulatory & Medical Affairs and member of the Getinge Executive Team.
Phone Conference
A conference call will be held on October 19, 2022, at 10:00-11:00 a.m. CEST hosted by Mattias Perjos, President & CEO, and Lars Sandström, CFO. Please see dial in details below to join the conference:
SE: +46856642705
UK: +443333009030
US: +16467224903
During the conference call a presentation will be held. To access the presentation through webcast, please use this link: https://ir.financialhearings.com/getinge-q3-2022
Alternatively, use the following link to download the presentation: https://www.getinge.com/int/about-us/investors/reports-presentations/
Agenda
09:45 Dial in to the conference
10:00 Presentation
10:30 Q&A
11:00 End of conference
Recording available for 3 years
A recorded version can be accessed for 3 years via https://ir.financialhearings.com/getinge-q3-2022.
Media contact:
Lars Mattsson, Head of Investor Relations
Tel: +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 October 19, 2022, at 08:00 a.m. 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 over 10,000 people worldwide and the products are sold in more than 135 countries.