April 23, 2019 Gothenburg, Sweden
Getinge publishes Interim Report for January-March 2019
”We show strong organic growth and improved operating margin in the first quarter”, says Mattias Perjos, President & CEO Getinge. “It is also positive to see that our gross margin is continuing to move in the right direction sequentially and that our operating expenses are declining in relation to sales”.
Getinge is today reporting an increase in organic sales by 6.0% and an increased order intake of 7.6% organically in the quarter. This means that Getinge is growing faster than the market. All major markets performed strongly, particularly in the APAC-region where Getinge’s sales in China grew by more than 20% organically. Getinge received clearance from the FDA for the software version for the Servo-u and Servo-n mechanical ventilator platform in the US market, which will support continued healthy growth in Critical Care.
”Based on the high order intake and signals from our customers, we are looking forward to continued growth for the full-year”, says Mattias Perjos. “It is also positive to see slight improvement in adjusted EBITA margin for the quarter compared with the year-earlier period. Despite this, I am not satisfied with the current level of operating expenses and have therefore initiated a number of restructuring activities”.
The restructuring costs for the quarter totaled SEK 108 M and the measures are expected to start making a positive contribution to profitability in the second half of 2019. Working capital is developing along the right lines despite the robust growth and cash flow remains stable.
January – March 2019 in brief
- Net sales increased organically by 6.0% and the order intake rose by 7.6%, meaning that the order intakes are higher year-on-year.
- Adjusted gross profit amounted to SEK 2,825 M (2,588) and the margin was 50.9% (53.2), entailing that the sequential improvement is continuing (48.0% in Q4 2018). IFRS 16 had a positive effect of SEK 27 M on adjusted gross profit.
- Adjusted EBITA amounted to SEK 369 M (301) and the adjusted EBITA margin was 6.7% (6.2). IFRS 16 had a positive effect of SEK 2 M on adjusted EBITA.
- Adjusted earnings per share amounted to SEK 0.64 (0.46). The effect of IFRS 16 was SEK
-0.01 per share.
- Clearance received from the US FDA for software upgrade for the Servo-u and Servo-n ventilator platform, which is expected to continue to support a healthy sales trend in Critical Care.
A conference call will be held on April 23, 2019, at 12:30-1:30 pm CET hosted by Mattias Perjos, President & CEO, and Lars Sandström, CFO. Please see dial in details below to join the conference:
SE: +46 8 566 427 07
UK: +44 33 33 009 269
US: +1 844 625 1570
During the telephone conference a presentation will be held. To access the presentation through webcast, please use this link: https://tv.streamfabriken.com/getinge-q1-2019.
Alternatively, use the following link to download the presentation: https://www.getinge.com/int/about-us/investors/reports-presentations
A recorded version can be accessed for 3 years via: https://tv.streamfabriken.com/getinge-q1-2019
Lars Mattson, Head of Investor Relations
Tel: +46 (0)10 335 0043
Jeanette Hedén Carlsson, EVP Communication & Academy
Tel: +46 (0)10 335 1003
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 April 23, 2019, at 10:30 a.m. CET.