#Sweden #Gothenburg #Getinge #Paragonix Technologies #ECLS

Getinge's Year-End 2024 Report: A Year of Remarkable Growth

Getinge, the renowned Swedish medical technology company, has concluded 2024 with unprecedented sales figures, scoring a tremendous quarter to wrap up an already outstanding year. According to CEO Mattias Perjos, there was a significant increase in both order intake and net sales, highlighting substantial growth across all regions.

One of the standout performers for the year was Getinge's ventilators segment, which thrived significantly amid market consolidation. Alongside this, the company's consumables related to Extracorporeal Life Support (ECLS) within Acute Care Therapies and Sterile Transfer in Life Sciences performed impressively. This robust performance can be attributed to Getinge's strategic focus on critical healthcare needs and operational efficiency.

The acquisition of Paragonix Technologies, Inc. in Q3 2024 has also played a critical role in Getinge's success. Paragonix reported impressive growth in its product offerings, particularly with its KidneyVault portable renal perfusion system. This innovation, which recently earned FDA 510(k) clearance, places Getinge in a unique position to address the vast organ transplant market, offering a comprehensive portfolio covering all major organ categories.

A critical aspect of Getinge’s success story in 2024 can be seen in its enhanced operational margins. The company's ongoing structural measures for increasing productivity and cost efficiencies have significantly strengthened its operating margins compared to Q4 2023. Mattias Perjos expressed his confidence in the company's capability to leverage profitability with higher sales, leading to robust cash flows and earnings.

In line with maintaining a competitive edge and ensuring long-term growth, Getinge's board has initiated a strategic process to phase out the Surgical Perfusion product category. The decision aims to reallocate resources more effectively towards more promising segments such as ECLS and Transplant Care. Despite the current limitations in market growth and an unsatisfactory market share for Surgical Perfusion, the planned transition is expected to yield marginally positive results for adjusted EBITA starting from 2025.

Looking ahead, Getinge remains optimistic. Despite facing geopolitical uncertainties and potential trade barriers, the company anticipates stable demand driven by ongoing long-term care needs and hospitals' readiness to invest. They expect to maintain a positive trajectory in prioritized product categories, with an anticipated organic sales growth of 2-5% in 2025.

Financial Highlights

The financial performance of Getinge during the last quarter of 2024 demonstrated resilience with organic net sales increasing by 9.2%. The order intake saw a rise of 7.4%, reflecting a solid operational foundation. Key financials include:

• - Adjusted Gross Profit: SEK 5,604 million (an increase from SEK 4,596 million)
• - Adjusted EBITA: SEK 2,143 million (up from SEK 1,318 million)
• - Earnings Per Share (EPS): SEK 5.28, compared to SEK 3.11 the previous year

Annual Overview of 2024

When assessing the full year performance:

• - Getinge's net sales grew organically by 4.9%, while order intake rose by 6.3%.
• - Adjusted Gross Profit: SEK 17,409 million, reflecting a margin of 50.1%.
• - Adjusted EBITA: SEK 4,869 million, with a margin of 14.0%.
• - Earnings-Per-Share: Increased to SEK 11.73 from SEK 9.19.
• - Free cash flow surged to SEK 3,284 million from SEK 1,623 million.
• - A proposed dividend per share of SEK 4.60 was introduced, compared to SEK 4.40.

Investor Communication

A conference call led by Mattias Perjos and CFO Agneta Palmér is scheduled for January 28, 2025, where they will engage with investors regarding the company's performance and future strategies. The presentation will be available for streaming, ensuring accessibility to all stakeholders.

Conclusion

As Getinge moves into 2025, the company's strong positioning in vital healthcare products, coupled with strategic adjustments and a solid financial foundation, positions it well for continued growth in an ever-evolving healthcare landscape. With the expectation of steady demand and investment readiness from hospitals, Getinge's outlook remains decidedly favorable as they focus on enhancing patient care and clinical outcomes globally.