Q2 2024 Draegerwerk AG & Co KGaA Earnings Call Transcript
Key Points
- Earnings increased by EUR8 million to almost EUR56 million, corresponding to an EBIT margin of 3.7%.
- Order volume increased in Germany and America, contributing to overall group order intake being above the prior-year level.
- Successful launch of new products such as the Vista 300 patient monitor and approval of Evita V600/800 ventilators in China.
- Significant improvement in operating cash flow due to better working capital management and lower cash-relevant investments.
- Equity ratio improved to almost 48% as of June 30, 2024.
- Net sales in the first half of 2024 were slightly below the prior-year level at around EUR1.5 billion.
- Order intake in the APAC region fell significantly due to the challenging market environment in China.
- Medical division's order intake decreased by around 2% due to a decline in ventilator demand in China and healthcare reform impacts.
- EBIT margin for the medical division decreased to minus 2.9% in the first six months.
- Free cash flow after six months remained slightly in negative territory.
Good afternoon, and thank you for joining our conference call on our financial results for the first half of 2024. I have with me today Gert-Hartwig Lescow, CFO, as well as Tom Fischler and Nikolaus Hammerschmidt, both Investor Relations.
We would like to take you through the results with the presentation that we made available on our web page this morning. Following the presentation, we will open the floor to your questions.
Let's get started on page 5 with the business highlights. Following our return to growth and profitability last year, our business performance was solid overall in the first half of 2024. That said, we are well on track on achieving our annual targets. At around EUR1.5 billion, net sales in the first half of 2024 did not quite reach the high level of the prior-year period, which was positively influenced by an improvement in delivery capacity and a surge in demand for ventilators in China.
But thanks to our solid operating performance and some one-time effects, earnings were up by
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