Published by Global Banking and Finance Review
Posted on January 28, 2025
(Reuters) -Swedish medical equipment maker Getinge reported fourth-quarter core earnings above market expectations on Tuesday, supported by solid growth in order intake and sales across its regions.
Its shares were up around 8% by 0858 GMT, among top performers on Europe's benchmark STOXX 600 index.
Getinge said growth was particularly strong in ventilators. Consumables in extracorporeal life support in its main Acute Care Therapies unit and sterile transfer in the Life Science arm also showed solid performance.
Acute Care Therapies, which makes heart and intensive care products, generated more than half of the group's sales in 2024. Life Science, which provides equipment, technical expertise and consultations to prevent contamination in pharmaceutical and medical device production, made up 13% of them.
Paragonix Technologies, which Getinge bought in the third quarter of last year, also posted "impressive growth" in the fourth quarter, it said.
"Despite geopolitical uncertainties and potential trade barriers, our industry is likely to remain relatively stable, driven by long-term healthcare needs and hospitals' willingness to invest," Getinge said in a statement, forecasting a 2-5% organic rise in 2025 sales.
Asked about possible U.S. health care policy changes under President Donald Trump, CEO Mattias Perjos told Reuters it was too early to say how they might affect Getinge, which makes more than a third of its sales in the United States.
Tariffs should not affect the company as the medical technology sector is not among Trump's targets, Perjos added.
Getinge's adjusted operating earnings before amortisation (EBITA) rose 63% to 2.14 billion Swedish crowns ($194.65 million) in the fourth quarter, while analysts were expecting 1.58 billion crowns in a company-provided consensus.
Structural and cost efficiency measures boosted the quarterly operating margin, Getinge said. Its adjusted EBITA margin rose to 19.4% from 13.3% year ago.
The company proposed a dividend of 4.60 crowns per share for 2024, up from the 4.40 crowns paid last year but slightly below analysts' average estimate of 4.63 crowns, according to LSEG's IBES data.
($1 = 10.9943 Swedish crowns)
(Reporting by Marta Frąckowiak in Gdansk; Editing by Milla Nissi)
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