Q3 2024 Getinge AB Earnings Call Transcript
Key Points
- Getinge AB (GNGBF) reported a strong global market momentum with a 10% increase in order intake, including 7.4% organic growth.
- The company saw improved adjusted gross margins in life science and surgical workflows, indicating operational efficiency in these segments.
- Recent acquisitions, such as Paragonix Technologies and Intact Solution, are expected to contribute significantly to growth and align well with Getinge's existing product portfolio.
- The company's server ventilators received cybersecurity clearance from the US Defense Health Agency, enhancing their marketability within the US Department of Defense.
- Getinge AB (GNGBF) maintains a solid financial position with a leverage of 2x EBITA, despite recent acquisitions, indicating strong financial management.
- Net sales growth was modest at 3.5%, with organic growth flat compared to the previous year, indicating challenges in driving sales.
- The adjusted gross margin for the group decreased due to negative mix, inflation, and under-absorption, impacting overall profitability.
- Temporary supply chain challenges negatively affected net sales, particularly in acute care therapies, highlighting operational vulnerabilities.
- The CE certificate for the Cardiosave balloon pump remains suspended, potentially affecting future sales and market confidence.
- The company faces elevated quality-related costs, trending above SEK0.5 billion for the year, which could pressure margins.
Welcome to the Getinge Q3 report 2023. (Operator Instructions) Now I will hand the conference over to the speakers, CEO Mattias Perjos and CFO Agneta Palmér. Please go ahead.
Thank you very much, and thanks, everyone, for joining today. We can move directly to page number 2 and the key takeaways from the quarter, please.
So we look back at a quarter where we continue to see strong global market momentum for our products. Order intake growth for Getinge as a whole increased by 10 percentage points, of which organic growth amounted to 7.4%. And this is thanks to positive development in all business areas, except for life science, and it's a good geographic spread as well when it comes to the order intake.
Net sales increased by 3.5% in the quarter, where organic growth was flat to last year. Adjusted gross margin in life science and surgical workflows improved in the quarter. However, it decreased in acute care therapies and also for the group as a consequence of this,
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