Press release Gothenburg, Sweden on July 19, 2022
Getinge Interim Report January-June 2022: Recovery in elective surgery overshadowed by external challenges
“Order intake and net sales declined organically by 5% and 7.5% respectively in the quarter, which however ended with increased order intake,” says Mattias Perjos, President & CEO. ”Our customers are planning for a normal flu season in the second half of the year, which is expected to result in a recovery in ICU products”.
The performance for the quarter as a whole was impacted by reduced production of COVID-19 vaccines and the number of patients requiring life support in Intensive Care Units (ICUs) declining significantly more than both the health care sector and Getinge had predicted, combined with a milder flu season. In addition, Getinge was impacted negatively by the Russian invasion of Ukraine, lockdowns in China and supply chain challenges.
“Acute Care Therapies decreased its net sales organically, while both Life Science and Surgical Workflows grew,” says Mattias Perjos, President & CEO. “Net sales increased in products for elective cardiovascular procedures, infrastructure for ORs and sterile supply departments in hospitals and products for drug manufacturing”.
During the quarter, Getinge completed an internal investigation related to potential violations of German Medical Device Act. Five current and former Getinge employees are being investigated for these potential violations by the public prosecution office in Germany. The company is cooperating fully with the prosecution office and its internal investigation identified shortcomings regarding individual interpretations of quality and regulatory processes. In addition to the comprehensive remediation measures already in place, Getinge is also making structural changes and has identified training measures.
Getinge noted favorable currency effects on earnings in the quarter, but margins remained intact even excluding this, given lower volumes, unfavorable mix effects and negative effects from supply chain challenges.
April - June 2022 in brief
- Net sales declined organically by 7.5% and the order intake declined organically by 5.0%.
- Adjusted gross profit amounted to SEK 3,355 M (3,624) and the margin was 50.3% (55.0).
- Adjusted EBITA amounted to SEK 956 M (1,250) and the margin was 14.3% (19.0).
- Adjusted earnings per share amounted to SEK 2.33 (3.04).
- Cash flow after net investments amounted to SEK 129 M (1,228).
- Changes to Getinge Executive Team: Lena Hagman will leave Getinge and her role as EVP Quality Compliance, Regulatory & Medical Affairs by the end of the year at the latest. On July 14, Agneta Palmér was appointed EVP Operational Services. She will take up the position on September 15.
A conference call will be held on July 19, 2022, at 10:00-11:00 am CEST hosted by Mattias Perjos, President & CEO, and Lars Sandström, CFO. Please see dial in details below to join the conference:
Use the following pin code: 1863734#
During the conference call a presentation will be held. To access the presentation through webcast, please use this link: https://tv.streamfabriken.com/getinge-q2-2022
Alternatively, use the following link to download the presentation: https://www.getinge.com/int/about-us/investors/reports-presentations/
09:45 Dial 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-q2-2022
Lars Mattson, Head of Investor Relations
Tel: +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 July 19, 2022, at 08:00 a.m. CEST.
With a firm belief that every person and community should have access to the best possible care, Getinge provides hospitals and life science institutions with products and solutions that aim to improve clinical results and optimize workflows. The offering includes products and solutions for intensive care, cardiovascular procedures, operating rooms, sterile reprocessing and life science. Getinge employs over 10,000 people worldwide and the products are sold in more than 135 countries.