Getinge Q3 Report 2021: "Strong order intake and our remediation measures completed in Germany"

Rhea-AI Summary

Getinge reported a 21.8% increase in organic order intake for Q3 2021, although net sales declined by 20.1% year-over-year due to previous record ICU ventilator deliveries. Adjusted gross profit was SEK 3,334 M with a gross margin of 52.9%. The company successfully completed remediation measures under the FDA's Consent Decree at its Hechingen site, which allows for a renewed focus on growth initiatives. The underlying EBITA margin improved, reflecting enhanced productivity despite the impact of COVID-19.

Positive

• Organic order intake rose by 21.8% in Q3 2021.
• Successful completion of FDA remediation measures at Hechingen, enhancing operational focus.
• Underlying EBITA margin improved due to better structural mix and productivity.

Negative

• Net sales declined by 20.1% year-over-year.
• Adjusted gross profit decreased from SEK 4,378 M to SEK 3,334 M.
• Adjusted earnings per share fell from SEK 5.37 to SEK 2.96.

GOTHENBURG, Sweden, Oct. 20, 2021 /PRNewswire/ -- "Organic order intake increased by more than 20% in the third quarter, with a strong performance in all business areas and regions," says Mattias Perjos, President & CEO at Getinge. "Our cash flow remains strong, meaning that we have strengthened our solid financial position."

Getinge's order growth was strong compared with both 2019 and 2020. As expected, net sales declined year on year due to record-breaking deliveries of ICU ventilators in Q3 2020. Compared with Q3 2019, sales increased significantly as a result of continuing high demand for products for life supporting ECMO therapy, bioreactors and products for Sterile Transfer, combined with continuing high sales of ventilators and a general recovery in other areas of the business.

"We achieved a milestone during the quarter when we completed our remediation measures under the Consent Decree with the FDA at our production site in Hechingen, Germany", says Mattias Perjos. "This does not mean that we automatically are out of the Consent Decree, but that all production sites covered by the Consent Decree can focus all their energy on forward-looking activities related to customer value and growth."

Getinge's underlying EBITA margin excluding COVID-19 effects continues to improve due to structural mix shift and enhanced productivity.

July – September 2021 in brief

• The order intake increased organically by 21.8% and net sales declined organically by 20.1%.
• Adjusted gross profit amounted to SEK 3,334 M (4,378) and the gross margin was 52.9% (54.9).
• Adjusted EBITA amounted to SEK 1,160 M (2,028) and the EBITA margin was 18.4% (25.4).
• Adjusted earnings per share amounted to SEK 2.96 (5.37).
• Cash flow after net investments amounted to SEK 1,380 M (1,567).

Phone Conference

A conference call will be held on October 20, 2021, 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:

SE: + 46 8 566 426 92
UK: + 44 33 33 009 265
US: + 1 646 722 4903

During the conference call a presentation will be held. To access the presentation through webcast, please use this link: https://tv.streamfabriken.com/getinge-q3-2021

Alternatively, use the following link to download the presentation: 
https://www.getinge.com/int/about-us/investors/reports-presentations/

Agenda

09:45    Dial in to the conference
10:00    Presentation
10:30    Q&A
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-q3-2021

Media contact:

Lars Mattson, Head of Investor Relations
Tel: +46 (0)10 335 0043
Email: lars.mattsson@getinge.com

This information is such that Getinge AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on October 20, 2021, at 08:00 a.m. CEST.

About Getinge

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.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/getinge/r/getinge-q3-report-2021---strong-order-intake-and-our-remediation-measures-completed-in-germany-,c3435800

The following files are available for download:

https://mb.cision.com/Main/942/3435800/1483314.pdf	Getinge Interim Report January-September 2021
https://news.cision.com/getinge/i/getinge-maquet-volista-visionir,c2969289	Getinge Maquet Volista VisioNIR
https://news.cision.com/getinge/i/mattias-perjos,c2969290	Mattias Perjos
https://mb.cision.com/Public/942/3435800/9a58b27b349807e5.pdf	Press release Getinge Q3 Report 2021

View original content:https://www.prnewswire.com/news-releases/getinge-q3-report-2021-strong-order-intake-and-our-remediation-measures-completed-in-germany-301404289.html

SOURCE Getinge

FAQ

What is Getinge's order intake growth in Q3 2021?

Getinge reported a 21.8% increase in organic order intake for Q3 2021.

How much did Getinge's net sales decline in Q3 2021?

Getinge's net sales declined by 20.1% year-over-year in Q3 2021.

What was Getinge's adjusted earnings per share in Q3 2021?

Getinge's adjusted earnings per share for Q3 2021 was SEK 2.96.

What significant measure did Getinge complete concerning the FDA?

Getinge completed its remediation measures under the FDA's Consent Decree at the Hechingen site.

How did the underlying EBITA margin change for Getinge in Q3 2021?

The underlying EBITA margin improved in Q3 2021 due to enhanced productivity.