Yahoo Finance

• Order Intake Growth: 11% overall growth, with 7.4% organic growth.

• Net Sales Growth: Increased by 11.8%, with 9.2% organic growth.

• Adjusted Gross Profit: Increased by SEK1 billion to SEK5.6 billion.

• Adjusted EBITDA: SEK2.143 billion, with a margin of 19.4%.

• Free Cash Flow: Increased by more than 70% to around SEK1.7 billion.

• Net Debt: SEK10.5 billion, adjusted to SEK7.8 billion excluding pension liabilities.

• Leverage: 1.6 times adjusted EBITDA, 1.2 times when adjusted for perpetual liabilities.

• Dividend Proposal: SEK4.60 per share, representing 38% of free cash flow per share.

• Paragonix Technologies Contribution: Net sales growth of about 65%, contributing approximately SEK240 million.

• Surgical Perfusion Net Sales: SEK450 million in 2024, with restructuring costs estimated at SEK800 million.

• Warning! GuruFocus has detected 7 Warning Signs with GNGBF.

Release Date: January 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Order intake grew by 11%, with organic growth of 7.4%, indicating strong demand across most regions and business areas.

• Net sales increased by 11.8% in the quarter, with 9.2% organic growth, driven by healthy price increases and a positive product mix.

• The acquisition of Paragonix Technologies contributed significantly, with a 65% net sales growth in Q4, enhancing Getinge AB's position in the organ transport market.

• Free cash flow increased by more than 70%, reaching approximately SEK1.7 billion, reflecting improved business performance and efficient working capital management.

• The financial position remains solid with a leverage of 1.6 times adjusted EBITDA, well below the internal threshold, supporting a proposed dividend increase to SEK4.60 per share.

Negative Points

• The life science segment experienced flat growth, with weak orders for High Purity New England within bioprocessing.

• A provision of SEK297 million was made for ongoing field actions related to the Cardiosave Balloon Pump, impacting financial results.

• The surgical perfusion product portfolio is being phased out due to declining market share and eroding margins, leading to restructuring costs of approximately SEK800 million.

• Quality-related costs peaked in 2024, exceeding SEK800 million, due to various remediation efforts, impacting profitability.

• Price increases are becoming increasingly difficult to implement in the market, potentially affecting future revenue growth.

Q & A Highlights

Q: Can you provide insights on the margin outlook for 2025, given the 100 basis point improvement in 2024? A: We are not providing specific yearly guidance on margins but expect continued improvements. We are ahead of the trajectory set during the Capital Markets Day and anticipate further progress in the coming years.