Getinge Year End Report 2022:“External challenges remain but are expected to ease in 2023”

“The order intake and net sales declined organically by 6.7% and 5.3% during the quarter, mainly as a result of continuing external challenges,” says Mattias Perjos, President & CEO of Getinge. “Hospitals have not yet recovered to pre-pandemic levels for elective surgery, are generally experiencing lower productivity than before the pandemic, and have low treatment needs related to seasonal influenza”.

Getinge reports challenging comparative figures in products for COVID-19 treatment and vaccine production and the challenges in the supply chain continue, which negatively impacted net sales by at least SEK 400 M, mainly in capital goods and Acute Care Therapies.

Lower sales volumes, unfavorable mix effects and a general increase in cost pressure contributed to lower margins in the quarter. To counteract these effects, Getinge is continuing its work on price adjustments, ongoing productivity improvements and more thorough rationalizations where necessary. Getinge’s free cash flow and financial position remains strong with very low net debt.

“For 2023 we are expecting a weaker first half of the year as a result of continuing challenging comparative figures for significant parts of Acute Care Therapies and Life Science, whereas the second half of the year is expected to be stronger, says Mattias Perjos, President & CEO of Getinge. “This will result in healthy growth for us in the second half of the year and an anticipated organic sales growth of 2-5% for the full-year”.

October - December 2022 in brief

• Net sales declined organically by 5.3% and the order intake fell organically by 6.7%.
• Adjusted gross profit amounted to SEK 4,153 M (4,150) and the gross margin was 48.9% (52.0).
• Adjusted EBITA amounted to SEK 1,317 M (1,723) and the EBITA margin was 15.5% (21.6).
• Adjusted earnings per share amounted to SEK 3.35 (4.54).
• Free cash flow amounted to SEK 708 M (1,313).
• Items affecting comparability amounted to SEK -437 M, of which SEK -195 M comprised acquisition and restructuring costs and the remainder was write-downs of capitalized development projects.

January – December 2022 in brief

• Net sales declined organically by 5.4% and the order intake declined organically by 5.3%.
• Adjusted gross profit amounted to SEK 14,361 M (14,392) and the gross margin was 50.8% (53.2).
• Adjusted EBITA amounted to SEK 4,281 M (5,212) and the EBITA margin amounted to 15.1% (19.3).
• Adjusted earnings per share amounted to SEK 10.90 (13.22).
• Free cash flow amounted to SEK 2,261 M (5,946).
• A dividend per share of SEK 4.25 (4.00) is proposed.

Phone Conference

A conference call will be held on February 1, 2023, at 10:00-11:00 am CET hosted by Mattias Perjos, President & CEO, and Lars Sandström, CFO. Please see dial in details below to join the conference:

SE: +46-8-5051-6386
UK: +44-20-319-84884
US: +1-412-317-6300
Pin code: 6209909#

During the conference call a presentation will be held. To access the presentation through webcast, please use this link: https://ir.financialhearings.com/getinge-q4-2022 

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-q4-2022 

Media contact:

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

This information is such that Getinge AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on February 1, 2023, at 08:00 am CET.

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.