Getinge Interim Report July - September 2023: Higher sales, gradually strengthened margins and stable cash flows
“Getinge’s sales rose organically by 5.7% in the quarter,” says Mattias Perjos, President & CEO at Getinge. “Most of the operations in Acute Care Therapies performed positively. Sales in Life Science were unchanged and Surgical Workflows grew in all product categories and regions. The order intake declined organically by a total of 1.9% in the quarter, which was exclusively linked to Acute Care Therapies.”
The Group’s margins and cash flow were positively impacted sequentially by higher deliveries of consumables, mainly in Cardiac Assist. However, continuing low demand in products for the development and production of biopharmaceuticals, direct and indirect wage inflation as well as costs for field corrections in Cardiac Assist and managing packaging problems in Cardiopulmonary negatively impacted earnings.
”At the end of September, our exemption for deliveries of our important ECMO therapy consumables in the EU was extended through September 2024, providing us with adequate time to have an approved packaging solution in place,” says Mattias Perjos, President & CEO at Getinge.
After the end of the quarter, Healthmark was acquired, a leading provider of innovative instrument care and infection control consumables in the US market. Healthmark’s offering is an ideal complement to Getinge’s existing portfolio in Infection Control, with minimal overlap. The acquisition of High Purity New England was also completed and will be included in the business area Life Science from Q4 this year.
July - September 2023 in brief
- Net sales increased by 5.7% and the order intake declined by 1.9% organically.
- Adjusted gross profit amounted to SEK 3,890 M (3,592) and the margin was 51.1% (51.8).
- Adjusted EBITA amounted to SEK 1,101 M (1,170) and the margin was 14.5% (16.9).
- Adjusted earnings per share amounted to SEK 2.66 (3.10).
- Free cash flow amounted to SEK 1,072 M (1,005).
- Jeanette Hedén Carlsson, EVP Brand & Communication, decided to resign and the process of recruiting her replacement has been initiated.
- After the end of the reporting period:
- The acquisition of High Purity New England was completed and will be included in Life Science from Q4 2023.
- The acquisition of Healthmark was completed and will be included in Surgical Workflows from Q4 2023.
Phone Conference
A conference call will be held on October 23, 2023, at 10:00-11:00 a.m. CEST hosted by Mattias Perjos, President & CEO, and Lars Sandström, 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.
Investor Relations contact
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 October 23, 2023, at 08:00 am 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.