Getinge (GETI) Q2 2024 earnings summary

Executive summary

• Net sales rose 15.7% in Q2 2024 (organic 8.9%), with order intake up 14.4% (organic 7.8%), driven by strong Acute Care Therapies and new product launches.

• Margins improved significantly year-over-year due to higher volumes, favorable mix, and pricing actions.

• Several new products launched, including Poladus 150 sterilizer, GEW 888 neo washer, Talis software (FDA 510(k) clearance), Advanta V12 stent (EU MDR approval), and a new DPTE-BetaBag version.

• Regulatory challenges in the US led to suspended marketing of certain cardiac products, with accelerated improvement and remediation measures underway.

• Financial position remains solid despite increased net debt from recent acquisitions, enabling continued investment in growth.

Financial highlights

• Q2 2024 net sales: SEK 8,305M (up 15.7%); organic growth 8.9%.

• Adjusted gross margin: 50.0% (up from 46.2%); adjusted EBITA margin: 11.8% (up from 6.9%).

• Gross profit rose by SEK 837 million to SEK 4,151 million; adjusted EBITDA increased by SEK 486 million.

• Free cash flow at SEK 289M (Q2), SEK 1,233M (H1), and working capital days at 91.6.

• Net profit for Q2: SEK 513M (up from 216M); operating margin: 10.0% (up from 5.3%).

Outlook and guidance

• 2024 organic net sales growth expected at 2–5%, with acquisitions contributing an additional 3–5 percentage points; guidance unchanged.

• Adjusted EPS target of over 12% average growth for 2024–2028 reaffirmed.

• Extraordinary quality costs expected to normalize in H2, with full-year costs around SEK 500 million.