The following is a summary of the Getinge AB (GNGBF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Getinge reported Q1 2024 sales increase by 5.2% and order intake growth by 7.8%, with organic order growth being 2.5%.
The adjusted EBITDA margin was lower than the prior year due to higher costs, despite the sales increase.
Getinge's strong free cash flow and a solid financial position will enable continued investment in profitable growth.Revenue increased further following the successful acquisitions of Healthmark and High Purity New England, which performed beyond company expectations.
The revenue increment was partly offset by quality challenges, affecting supply chains.
Business Progress:
Several new products including the Hemopro 3, Servo TwinView, and the Aquadis Index were launched.
Significant strides in sustainability efforts, with CO2 emissions continuing to trend positively.
Ongoing quality improvement efforts in Cardiac Assist and Cardiopulmonary.
Forecasting an organic net sales growth in the 2% to 5% range for 2024.
Surgical Workflows business experienced growth, which is expected to continue.
Signed a distribution agreement with Cook for the covered stents, indicating potential strength in the Critical Care business.
Increased capital expenditure expected due to increased investment in future portfolios and quality improvement areas. A detailed update on end market growth, cost evolution, and business mix to be provided on May 15th.
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