Getinge Interim Report for January-March 2020: Intense efforts to help hospitals in the COVID-19 pandemic
“The quarter was dominated by the COVID-19 pandemic and the huge need for advanced ventilators and ECMO therapy at intensive care units around the world. Our leading global positions in these fields contributed to a 47% organic order growth, says Mattias Perjos, President & CEO Getinge. “We expect to see continuing strong demand in both areas since demand is far outstripping supply”.
Consequently, Getinge announced at the start of April an increased production capacity of ventilators by 160% compared with 2019. Getinge expects the high delivery rate to continue into 2021 and subsequently gradually return to past levels. Getinge has also decided to make additional investments to successively increase production capacity for life supporting equipment, also known as extracorporeal membrane oxygenation (ECMO).
At the same time as the order intake significantly increased in Acute Care Therapies, the order intake for the quarter declined in Life Science and Surgical Workflows as a result of COVID-19 and decreased surgeries outside the intensive care units. For this reason, Getinge has made certain cost adjustments and have contingency in place to further adjust costs if necessary.
“All in all, margins were positively impacted by higher volumes, an advantageous product mix, operational leverage and currency effects. The cash flow and cash balances were further strengthened”, says Mattias Perjos.
January – March 2020 in brief
- Net sales increased organically by 3.8% and the order intake rose by 47.2% organically, as a result of higher demand for products for treating patients diagnosed with COVID-19.
- Adjusted gross profit amounted to SEK 3,218 M (2,825) and the margin was 53.3% (50.9).
- Adjusted EBITA amounted to SEK 661 M (369) and the margin was 11.0% (6.7).
- Adjusted earnings per share amounted to SEK 1.41 (0.64).
- Cash flow after net investments amounted to SEK 988 M (139)
A conference call will be held on April 22, 2029, at 09:30-10:30 am CEST hosted by Mattias Perjos, President & CEO, and Lars Sandström, CFO. Please see dial in details below to join the conference:
SE: +46 856642693
UK: +44 3333009268
US: +1 8332498403
During the conference call a presentation will be held. To access the presentation through webcast, please use this link: https://tv.streamfabriken.com/getinge-q1-2020
Alternatively, use the following link to download the presentation: https://www.getinge.com/int/about-us/investors/reports-presentations.
09:15 Dial in to the conference
10:30 End of conference
Recording available for 3 years
A recorded version can be accessed for 3 years via https://tv.streamfabriken.com/getinge-q1-2020
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 April 22, 2019, 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.