In This Article:
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Order Intake Growth: 7.1% total growth, 2.9% organic growth.
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Net Sales Increase: 10.7% total increase, 6.2% organic growth.
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Adjusted Gross Margin: Improved by 0.8 percentage points.
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Adjusted EBITDA Margin: Improved by 1 percentage point to 12.1%.
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Adjusted Gross Profit: Increased by SEK 0.5 billion to SEK 4.337 billion.
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Adjusted EBITDA: SEK 1.003 billion.
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Free Cash Flow: Decreased to SEK 0.2 billion.
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Net Debt: SEK 9.7 billion; SEK 7.3 billion when adjusted for pension liabilities.
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Leverage Ratio: 1.4 times adjusted EBITDA; 1.1 times when adjusted for pension liabilities.
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Cash Position: Approximately SEK 4.2 billion.
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Recurring Revenue Share: 65% of sales.
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High-Margin Products: Make up about two-thirds of sales.
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2025 Outlook: Organic net sales growth expected to be 2% to 5%.
Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Getinge AB (GNGBF) reported a solid quarter with a 7.1% increase in order intake and a 10.7% rise in net sales, with 6.2% organic growth.
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The company's adjusted gross and EBITDA margins improved by about 1-percentage-point, driven by volume leverage, acquisitions, price increases, and a positive mix.
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The acquisition of Paragonix has been successful, with the KidneyVault product launch receiving positive feedback.
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Getinge AB (GNGBF) achieved EU MDR approval for the majority of its products, facilitating expansion outside the US.
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The company maintains a strong financial position with a leverage of 1.4 times adjusted EBITDA, well below its internal threshold of 2.5 times.
Negative Points
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Currency fluctuations negatively impacted the EBITDA margin by 1.1-percentage-point in the quarter.
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Free cash flow decreased to SEK0.2 billion, affected by volume-driven inventory increases and lower operating liabilities.
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Life Science order intake was significantly down due to weak orders in the Bio-Processing subsegment.
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The intended phaseout of the Surgical Perfusion product category negatively impacted organic order intake and net sales.
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There is ongoing uncertainty related to tariffs and geopolitical factors, which could impact future financial performance.
Q & A Highlights
Q: Can you elaborate on the strong performance in the Americas for Acute Care Therapies and any potential stocking due to flu season or tariffs? A: Mattias Perjos, CEO: The strong performance is mainly due to ventilators and ECLS. We don't believe it's related to stocking but rather a shift towards remaining ventilator suppliers. For ECLS, there might be a flu effect, but no evidence of stocking.