January 30, 2019, Gothenburg, Sweden
Getinge publishes Year-End report for January-December 2018
“Growth continued to be strong even in the last months of 2018 and our net sales increased by 7% in the quarter, of which 2.4% was organic growth. 2018 was a year in which we delivered the highest organic growth for many years, fully in line with the plan we adopted in 2017,” says Mattias Perjos, President & CEO of Getinge. “We will continue in 2019 with our planned measures to gradually improve profitability.”
Despite a temporary decline in orders, the year ended with better order bookings than at the end of 2017, which is a positive result. Getinge expects an order growth in future quarters, and for the full-year 2019 net sales is expected to increase organically by 2-4%.
The margins are improving and the adjusted gross margin was for the first time in 2018 sequentially higher, although only slightly. Getinge shows good control of the operating expenses, which after currency adjustments were in line with the preceding quarter. This was despite costs being at a seasonal high in the fourth quarter of the year.
The adjusted EBITA margin was 17.9% and excluding currency effects was in line with the fourth quarter of 2017. Cash flow was stable despite the large payment of SEK 276 M to cover the previously announced company fine in Brazil.
October – December 2018 in brief
- Net sales increased organically by 2.4%, and order intake declined organically by 3.1%. However, order bookings were higher than at year-end 2017.
- Adjusted EBITA amounted to SEK 1,412 M (1,377), and the EBITA margin was 17.9% (18.7).
- Currency effects had an impact of SEK +342 M on net sales, SEK +105 M on gross profit and SEK +6 M on EBITA.
- Adjusted earnings per share amounted to SEK 3.47 (3.81).
- Cash flow after net investments amounted to SEK 321 M (613) and was negatively impacted by the previously announced non-recurring payment of a company fine of SEK 276 M related to ongoing investigations in Brazil.
- Stéphane Le Roy was appointed as the President of Surgical Workflows.
A conference call will be hosted by Mattias Perjos, President & CEO, and Lars Sandström, CFO, on Wednesday January 30th, 2019 at 3:00 P.M. CET. Please find dial in details to join the conference call here.
Jeanette Hedén Carlsson, Executive Vice President Communications & Brand Management
Phone: +46 (0)10 335 1003
Lars Mattsson, Head of Investor Relations
Phone: +46 (0)10 335 0043
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 January 30, 2019, at 1:00 p.m CET.
Getinge is a global provider of innovative solutions for operating rooms, intensive-care units, sterilization departments and for life science companies and institutions. Based on our first-hand experience and close partnerships with clinical experts, healthcare professionals and medtech specialists, we are improving the every-day life for people, today and tomorrow