Gothenburg, Sweden on October 18, 2019
Getinge Q3 2019 result: Continued growth and improved margins
“We continue to show strong organic sales growth and improved margins in the third quarter”, says Mattias Perjos, President & CEO at Getinge. “The underlying cash flow remains strong despite that we seasonally are tying up more capital in the third quarter. In the coming quarters we will continue creating value for our customers and to work on strengthening profitability”.
Getinge’s organic sales growth is continuing across all business areas and regions. The organic order intake amounted to 3.5%, despite tough comparative figures following a long period of outperforming market growth. Getinge believes that underlying demand remains high, which also applies to the sales region Americas and business area Surgical Workflows, which presented a decrease in order intake in the third quarter.
“Our operating expenses were slightly higher compared with Q3 2018, mainly due to remediation measures and EU MDR preparations, but we can also see that operating expenses are reducing sequentially compared with the preceding quarter, which is a sign that our restructuring measures are starting to show results”.
During the third quarter, Getinge launched the operating table Maquet Lyra that meets growing demand in the value segment. The productivity and manufacturing volumes increased in the quarter and contributes to strenghtened margins. Improvements in logistics and inventories are also helping to enhance customer service and reduce costs.
July – September 2019 in brief
- Net sales increased by 4.8% organically and the order intake rose by 3.5% organically.
- Adjusted gross profit amounted to SEK 3,171 M (2,721) and the margin was 50.8% (47.9). IFRS 16 had a positive effect of SEK 29 M on adjusted gross profit.
- Adjusted EBITA amounted to SEK 677 M (438) and the adjusted EBITA margin was 10.9% (7.7). IFRS 16 had a positive effect of SEK 3 M on adjusted EBITA.
- Adjusted earnings per share amounted to SEK 1.42 (0.78). The effect of IFRS 16 was SEK 0.00 per share.
- Launch of Maquet Lyra, a high-quality operating table that meets growing demand in the value segment.
A conference call will be held on October 18, 2019, at 10:00-11:00 CEST hosted by Mattias Perjos, President & CEO, and Lars Sandström, CFO. Please see dial in details below to join the conference:
SE: +46 8 519 993 83
UK: +44 33 33 009 261
US: +1 833 823 05 89
During the telephone conference a presentation will be held. To access the presentation through webcast, please use this link: https://tv.streamfabriken.com/getinge-q3-2019
Alternatively, use the following link to download the presentation: https://www.getinge.com/int/about-us/investors/reports-presentations.
09:45 Call in to the conference
11:00 End of conference
Recording available for 3 years
A recorded version can be accessed for 3 years via https://tv.streamfabriken.com/getinge-q3-2019
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 October 18, 2019, at 08:00 a.m. CEST.