Getinge (GETI) Q3 2024 earnings summary

Executive summary

• Order intake grew by 10% year-over-year, with 7.4% organic growth, led by strong performance in most business areas and regions, especially Americas and EMEA, but Life Science lagged and delivery disruptions impacted earnings.

• Net sales increased by 3.5% year-over-year (0.2% organic), with acquisitions contributing positively and currency effects negative.

• Margins declined due to negative mix, inflation, higher quality costs, and under absorption, partially offset by price realizations.

• Financial leverage increased after recent acquisitions, but the financial position remains solid with stable free cash flow and working capital days trending down.

• Key regulatory and product events included reinstatement of CE certificate for HLS/PLS consumables and extension of Cardiosave suspension to July 2025, with no material financial impact.

Financial highlights

• Q3 2024 net sales reached SEK 7,870M (+3.5% vs. Q3 2023); organic growth 0.2%.

• Adjusted gross profit was SEK 3,799M (margin 48.3%, down from 51.1%); adjusted EBITA margin fell to 11.5% from 14.5%.

• Free cash flow was SEK 357M in Q3; working capital days at 191.

• Net debt at quarter-end was SEK 11.3B (2.0x EBITDA), reflecting recent acquisitions.

• Acquisitions contributed SEK 535M to net sales; currency had a SEK 286M negative impact.

Outlook and guidance

• Guidance for 2024 reiterated: organic net sales growth expected at 2–5%, with acquisitions contributing an additional 3–5%.

• Margin outlook remains flattish for 2023 and 2024, with no significant expansion expected due to mix and continued elevated quality costs.

• Cardiopulmonary business (ECMO/ECLS) expected to grow around 8% over time; balloon pumps at 2–3%.