Latest news with #GetingeAB
Yahoo
19-07-2025
- Business
- Yahoo
Getinge AB (GNGBF) Q2 2025 Earnings Call Highlights: Strong Organic Growth and Margin ...
Organic Net Sales Growth: 4.1% in Q2 2025. Order Intake Growth: 4.4% organically. Recurring Revenue: 65% of total sales. High Margin Products: Comprise about 2/3 of sales. Adjusted Gross Profit: SEK4.183 billion. Gross Margin Increase: Up by 0.8 percentage points. Adjusted EBITDA: SEK989 million, margin improved by 0.2 percentage points to 12%. Tariff Costs: Approximately SEK110 million in Q2. Free Cash Flow: SEK0.5 billion in Q2. Net Debt: SEK11.7 billion, leverage at 1.7 times adjusted EBITDA. Cash Position: Approximately SEK1.9 billion at the end of Q2. 2025 Outlook: Organic net sales growth expected to be 2% to 5%. Warning! GuruFocus has detected 6 Warning Signs with GNGBF. Release Date: July 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Getinge AB (GNGBF) reported a solid quarter with net sales growing by 4.1% organically, driven by positive development across all business areas and regions. The company achieved a significant increase in sales from recurring revenue, now at 65%, and high-margin products make up about two-thirds of sales. Adjusted gross and EBITDA margins improved due to acquisitions, healthy price increases, and a positive mix, despite tariffs and currency headwinds. The financial position remains strong with financial leverage well below 2.5 times EBITDA, even after the acquisition of Paragonix. Getinge AB (GNGBF) continues to invest in new products and solutions, such as the Servo-c ventilator with neonatal options and the Zen disinfection chemistry portfolio, enhancing its market offerings. Negative Points Tariffs and currency fluctuations negatively impacted the EBITDA margin, with tariffs costing approximately SEK110 million in the second quarter. The Life Science segment experienced softer performance due to high comparative figures from the previous year. There are ongoing elevated costs related to quality improvements, particularly in the balloon pump and cardiopulmonary categories. The company faces challenges in maintaining market share in certain categories, such as intra-aortic balloon pumps, due to restrictions on actively selling and marketing these products. Despite positive trends, the company anticipates more difficult comparisons in the second half of the year, particularly in ventilator sales. Q & A Highlights Q: Can you explain the implications of tariffs and FX on your long-term guidance and whether you've found new mitigation strategies? A: Our long-term guidance is based on the current tariff situation. We haven't found new mitigation strategies but are utilizing existing productivity improvements and regional supply chain strategies. The impact of tariffs and FX is significant, but we are managing it within our existing frameworks. - Mattias Perjos, CEO Q: What are your current assumptions regarding EU tariffs, and how do you expect them to impact your full-year results? A: We currently assume a 10% EU tariff for the full year. If tariffs increase, we would need to recalibrate our calculations. We don't provide specific guidance on future tariffs or FX impacts. - Agneta Palmer, CFO Q: How is the demand for ventilators expected to evolve, and can you disclose the number of ventilators you anticipate selling this year? A: Ventilator demand remains strong, but we expect more challenging comparisons in the second half of the year. We do not disclose specific sales numbers for ventilators. - Mattias Perjos, CEO Q: Could you provide more details on the tariff payments and their regional impact? A: Tariff payments began in the second half of April, primarily affecting EU to US flows. We have taken measures to manage our supply chain in response to these tariffs. - Agneta Palmer, CFO Q: What is driving the positive development of Paragonix, and can you provide any margin details? A: The margin expansion for Paragonix is volume-driven, and it is now accretive to group margins. The growth is supported by a successful product portfolio, including the KidneyVault launch. - Mattias Perjos, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Inicia sesión para acceder a tu portafolio
Yahoo
31-01-2025
- Business
- Yahoo
Getinge AB (GNGBF) Q4 2024 Earnings Call Highlights: Strong Sales Growth and Strategic Shifts
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. 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. 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: 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. Q: How should we interpret the strong order and revenue momentum in ECMO and balloon pumps, and what is the outlook for 2025 considering increased competition? A: There was some backlog delivery in Q4, particularly for balloon pumps, but underlying demand remains strong, especially for ECLS. Despite new competition, we continue to grow, indicating a growing market with customer loyalty to our products. Q: Regarding the strength in life sciences, particularly sterilizers, are these revenues non-recurring, and what is their impact on EBITDA? A: The business is not dependent on one customer and is not considered non-recurring. The order cycles and delivery patterns are lumpy, but we expect continued growth in these categories over the planning period. Q: Can you discuss the impact of price adjustments on Q4 results and the pricing outlook for 2025? A: Price adjustments contributed around 3% to both Q4 and the full year. While we expect continued price increases in 2025, they may be slightly below 2024 levels due to market challenges. Q: What is the rationale behind phasing out the surgical perfusion business, and how will resources be reallocated? A: The decision is due to low market share and losses in the surgical perfusion segment. Resources will be reallocated to more profitable areas like transplant care and ECMO, where we see better growth opportunities. Q: Can you provide details on Paragonix's profitability and its contribution to 2025 forecasts? A: Paragonix turned profitable by the end of Q3 and continues to improve. While still dilutive to the group, it shows leverage as it grows. We do not disclose detailed profitability figures. Q: What is the expected impact of the surgical perfusion phaseout on 2025 sales and margins? A: Sales from the surgical perfusion business will be around SEK300 million in 2025. The phaseout will result in a marginally positive EBITDA margin impact from 2025 onwards. Q: How did quality issues impact earnings in 2024, and what is the outlook for related costs? A: Quality-related costs peaked in 2024, exceeding SEK800 million. We expect these costs to trend downwards, but it's challenging to provide a granular breakdown due to the complexity of the issues involved. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
