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Getinge Reports Growth in Sales and Earnings

Getinge, a renowned player in medical technology, has recently released its interim report for January to March 2025, showcasing significant growth in both sales and earnings. According to the company's President and CEO, Mattias Perjos, the firm is beginning the year on a promising note, with healthy organic sales growth of 6.2% compared to the previous year. Despite facing challenges due to currency fluctuations, Getinge's adjusted operating profit improved, indicating a positive trajectory in their business performance.

Significant Factors Affecting Performance

The main driver of this growth was the Acute Care Therapies division, where Getinge has been proactively adapting to meet an increasing demand for ventilators and consumables in Extracorporeal Life Support (ECLS) systems. This proactive approach demonstrates Getinge's commitment to customer satisfaction and responsiveness to market needs. The report additionally noted a 2.9% increase in order intake, highlighting a robust demand across various offerings.

However, the report also addressed challenges faced in the Bio-Processing category, which continues to struggle, while the Sterile Transfer segment in Life Science shows ongoing positive momentum. Interestingly, the performance of operating tables has declined in comparison to last year's strong figures.

New Innovations and Certifications

One notable component of Getinge's growth strategy includes its acquisition of Paragonix Technologies, Inc. in late 2024, which has been well-received and is contributing positively through innovations such as the recently launched KidneyVault. This new product has garnered favorable feedback, signifying its importance in the market.

Additionally, the company reported that five of its six products now have obtained EU MDR compliance, marking a significant step in their international expansion outside the USA. In the Life Science sector, they introduced the DPTE®-FLEX Alpha port, designed to mitigate contamination risks for sensitive biopharmaceuticals.

Strategic Business Adjustments

Getinge has plans to gradually phase out its Surgical Perfusion business, a move that is expected to yield short-term challenges in organic order intake and sales. However, this transition is projected to enhance the adjusted operating margin, particularly by reallocating resources toward more profitable sectors such as ECLS and Transplant Care.

Despite external pressures from trade barriers and geopolitical unrest leading to increased operational costs, Getinge remains resilient. The company is actively preparing for various scenarios, including potential price adjustments, to maintain profitability.

Perjos remains optimistic about the future, asserting that Getinge's foundational strength, characterized by a diverse supply chain and a prominent market position, equips it to manage these obstacles effectively. The overarching goal is to continue delivering value to customers, clinical practitioners, and patients globally, even amidst fluctuating market conditions.

Financial Highlights

For the first quarter of 2025, Getinge’s financial performance showed marked improvement:

• - Net sales increased organically by 6.2% (from 0.0% previously).
• - Order intake rose organically by 2.9% compared to 2.5%.
• - Adjusted gross profit reached SEK 4,337 million (up from 3,855 million), reflecting a margin of 52.1%.
• - Adjusted EBITA was recorded at SEK 1,003 million, with a margin of 12.1%.
• - Earnings per share increased to SEK 2.18 from 1.92.
• - Free cash flow recorded was SEK 160 million down from 944 million.

Upcoming Conference Call

Getinge will host a conference call on April 22, 2025, from 1:00 PM to 2:00 PM CEST, where Perjos and CFO Agneta Palmér will discuss these results in detail. Prospective participants can register online.

The report underscores Getinge’s commitment to excellence in healthcare solutions, aimed at elevating clinical outcomes while optimizing workflows within hospitals and life science institutions. With the promise of innovation and quality at the forefront, Getinge is well-positioned for future success as it navigates both challenges and opportunities in the health care landscape.