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Research Tree provides access to ongoing research coverage, media content and regulatory news on GETINGE AB-B SHS. We currently have 6 research reports from 1 professional analysts.
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GETINGE AB-B SHS
GETINGE AB-B SHS
Q2 16 offers little respite
25 Jul 16
Getinge’s Q2 16 performance, although a significant improvement over the disastrous first quarter, continued to be tepid, with the company under-delivering on all counters against consensus expectations (c.3% and c.43% miss on top-line and bottom-line, respectively). Q2 16 sales were down 0.3% yoy to SEK6.9bn, mainly due to the continued weakness in the Patient & Post-Acute Care segment (erstwhile Extended Care); this, despite a resilient performance by Acute Care and a trend reversal in the Surgical Workflows segment. Unfavourable currency movements further pulled down reported growth to -3.5% yoy. However, benefits from the ongoing cost savings programme (c.SEK80-90m of cost savings realised in the quarter) reflected in the improved profitability, with adjusted operating income increasing c.18% to SEK606m (margin up 150bp to 8.7%). Net profit was up 28% to SEK227m, mainly on account of lower interest expenses (margin up 80bp to 3.3%). Another positive came in the form of an improved order intake (3% organic growth yoy vs. a 2% decline in the previous quarter). Following the results, management has ‘reworded’ its sales guidance for FY 16 – the company now expects a moderate organic sales growth for the year vs. the earlier expectation of a positive revenue growth. It also declined to comment on the Brexit impact (c.7.5% of total revenue came from the UK in 2015), stating that it’s too early to assess any long-term repercussions. The company also announced the appointment of Jens Viebke as the new president of Acute Care Therapies segment, replacing Heinz Jacqui.
Soft start to the year; still no clarity on Hechingen plant
24 May 16
Getinge reported another poor quarter, with Q1 16 numbers (both top line and bottom line) coming well below consensus estimates. Net sales were down 5% yoy to SEK6.4bn (-3% on an organic basis), while the order intake declined 4% to SEK6.9bn (-2% on an organic basis) mainly due to the continued weak demand for the capital goods business. The order intake in both Surgical Workflows and Patient & Post-Acute Care segments decreased 5%, while the sales decline was 7% and 5%, respectively (on an organic basis). The Acute Care Therapies was the only segment in the positive territory with order intake growth of 2% and sales growth of 1% (both in organic terms). Despite the support from the two-year suspension of the medical devices tax in the US, favourable product mix, savings from the restructuring programme (SEK75-80m) and positive currency impact (SEK50m), profitability remained under pressure, with adjusted operating profit plummeting 14% to SEK443m. However, excluding SEK76m of gain recognised in Q1 15 on account of the divestment of Pulsion’s perfusion operations, adjusted operating profit showed flat growth. Management has maintained its rather vague FY 16 outlook of positive revenue growth.
No abating of near-term headwinds
01 Apr 16
Disappointing Q4 15 and FY 15 results for Getinge (ahead of consensus on top-line but profitability missing market expectations). Full-year net sales (sales and order intake growth rates are on an organic basis, unless specified otherwise) were up 1.8% yoy (13.4% in SEK) to SEK30.2bn (in line with our estimate), while Q4 15 sales increased 4.3% (11.3% in SEK) to SEK9.4bn. Profitability remained under pressure, with adjusted EBIT declining 11.1% for the full year to SEK3.4bn (margin deteriorated c.3ppts yoy to c.11.2%) and 4% for the quarter to SEK1.7bn (margin deteriorated c.3ppts to c.18.3%), primarily impacted by the unfavourable product mix in the Medical Systems’ surgical workplaces division, pricing pressure in the Extended Care’s DVT (Deep Vein Thrombosis) and rental businesses, and loss of revenue and costs associated with the consent decree with the FDA. However, excluding SEK110m of provision recognised in relation to the ongoing litigation in the US in the Medical Systems’ segment and the SEK108m of loss recognised in connection with the disposal of MK Metallkomponenten, adjusted EBIT was up 7.8% in Q4 15 to SEK1.9bn. Net profit for the full year came in at SEK1.5bn, slightly below our expectation of SEK1.6bn. Management has proposed a per share dividend of SEK2.80 for FY 15 (unchanged from 2014). Pernille Fabricius joined as CFO in February 2016, replacing Ulf Grunander. For 2016, management expects organic sales growth to be within its 2016-19 target of 2-4%. It sees positive growth from the EMEA and North America regions and weak demand from the Latin America region. Restructuring charges are expected to be SEK800m (per earlier guidance) while the consent decree is expected to have a negative SEK130m impact (excluding costs associated with the remediation programme) on operating profit.
Solid order intake but margins continue to concern
02 Dec 15
In its first results following the announcement of the restructuring plan, Getinge announced better than expected Q3 15 numbers (ahead of consensus estimates), reporting its best quarterly performance in terms of order intake (5.2% organic growth vs. a 0.2% decline in Q3 14) since Q4 13. Net sales, however, were more subdued, increasing 1.1% organically (11.2% reported) to SEK6.9bn, driven by a revival in demand from the North American market and robust returns from the rest of the world. Segment-wise, both Medical Systems and Infection Control chalked in encouraging numbers, 5.9% and 14.8% increase in order intake, 2% and 6% improvement in sales growth, respectively. However profitability remained constrained (adjusted EBITDA and EBIT down c.2% and c.14%, respectively) due to lower utilisation as well as negative currency transaction effects (although margins were better than market expectations). Key highlights include a reduction in costs related to the consent decree (from SEK500m previously to now SEK375m, SEK275m already charged in the first three quarters of the year) as well as an increase in restructuring expenses in FY15 from SEK540m to SEK630m (following management’s decision to expedite certain restructuring activities, SEK213m recorded in Q3, including an SEK50m payment to the US government). Management now expects the net currency exchange effect to be in the range of SEK50m (from the earlier SEK10m).
All for One ‘Getinge’
14 Sep 15
Five months after assuming his role as CEO of Getinge, Alex Myers finally presented the long-awaited transformation/ restructuring plan for the group, with a primary focus on consolidating and streamlining group functions under “One Getinge” (in sharp contrast to its historical federation-type structure). Courtesy its ‘big five’ initiatives, the 3-4 year plan (2016-19) aims at restoring growth and profitability through cost optimisation (by delayering the group, supply chain and procurement management), portfolio rebalancing and customer-centricity. With effect from 1 January 2016, the business would be reorganised into – Surgical Workflows (a mix of Medical Systems and Infection Control, c.35% of sales), Acute Care (primarily Medical Systems, c.40% of sales) and Patient & Post-Acute Care (Extended Care, c.25% of sales). The programme is expected to translate into an SEK2.5–3bn EBITA savings by 2019, but will cost the company upwards of c.SEK1.5bn in restructuring expenses, with an anticipated headcount reduction of 1,000 (primarily in the office/ admin functions). The management also aims at significantly deleveraging its balance sheet, improving net debt/EBITDA from the current 4.3x to 1.5x by 2019. The new financial targets for 2016–19 on CMD were: annual organic growth of 2–4% (before currency and acquisition impacts); EBITA improvement of >10% yoy and dividend payout of 30–50% (currently c.33%). In addition to its focus on organic growth, the company has also made clear its intentions to continue to look out for attractive targets, to facilitate its expansion plans.
Poor quarter – no signs of recovery yet
28 Jul 15
No end in sight for Getinge’s troubles, with the company reporting yet another disappointing quarter (significantly below consensus estimates but in line with our more conservative top-line numbers) – Q2 15 net sales declined 0.4% yoy organically to SEK7.2bn vs. 1.4% yoy growth in Q2 14 (reported sales grew 13.5%, driven by currency benefits). Order intake also contracted 0.7% yoy organically vs. 2.2% yoy growth in Q2 14, weighed down by weak demand in Western Europe, alongside tepid growth in North America and the rest of the world. Despite currency benefits, profitability too continued to suffer (adjusted EBITDA down c.11%, adjusted EBIT down c.30%, due to charges related to the consent decree (SEK75m) as well as lower capacity utilisation. Higher restructuring charges (SEK86m vs. SEK27m in Q2 14) and interest-related expenses further depressed the bottom-line, with net profitability declining by c.56% to SEK177m. Management expects volume growth to improve in H2 15 and will be presenting its financial targets at its Capital Markets day, slated for 2 September.
30 Nov 16
Abzena (ABZA): Interim results indicate happy customers (BUY) | Horizonte Minerals* (HZM): Fund raise completed (CORP) | SacOil* (SAC): Half-year trading statement (CORP) | Revolution Bars (RBG): New openings (BUY) | Amino Technologies* (AMO): Multi operator FUSION roll out (CORP)
N+1 Singer - Morning Song 30-11-2016
30 Nov 16
Sanderson has delivered full year results in line with expectations and the 19 October trading update after a strong finish to the year compensated for a slower start. A healthy level of pre-contracted recurring revenue (50%), incremental sales to existing customers and new customer wins at higher average order values helped deliver solid revenue growth in both the Digital Retail (+9%) and Enterprise (+12%) divisions. A decent order book and good sales momentum suggest that the company is on track to deliver on unchanged profit expectations for the current year. We continue to view the valuation (FY17 EV/EBITDA 8.6x) as undemanding given an attractive combination of accelerating growth potential, strong cash generation and growing dividends.
N+1 Singer - Morning Song 29-11-2016
29 Nov 16
Vp has reported another impressive set of interims, confirming strong growth in most markets and a positive outlook. Recent acquisitions are bedding in well and the full year outturn is set to exceed previous expectations (5%/6% EPS upgrades in FY17/FY18). The recent Capital Markets Day provided a reminder of Vp’s qualities (specialist focus, high returns, strong cash generation) and its growth potential, which in our view are not reflected in a modest <11x P/E rating. We firmly believe the shares are due a re-rating and see intrinsic value in excess of 800p.
Small Cap Breakfast
29 Nov 16
Asia Pacific Investment Partner - the research-driven emerging and frontier markets real estate development business intends to float on AIM and conduct a placing in December RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.
Continuing to execute strategy on core focus
03 Oct 16
Q216 results were in line with the upper end of company guidance, with sales of €3.4m and an EBITDA loss of €1.4m. aap Implantate continues to focus on its strategic transition to being a pure trauma company, following the recent sale of its Biomaterials business. As the company continues to drive sales of LOQTEQ in Western Europe and the US alongside the implementation of cost reduction measures, we could see a return to sustained growth.
Food intolerance driving growth
29 Nov 16
Omega Diagnostics Group has an established core business providing high quality in vitro diagnostic tests within three core areas of competence – Food Intolerance, Allergy & Autoimmune, Infectious Disease – that are sold in over 100 countries. The group offers steady low single-digit growth which is profitable and cash generative. Investment in new products has seen the launch of a new panel of automated allergy tests and progress on Visitect CD4 for monitoring of HIV positive patients. Interim results highlighted the opportunities to accelerate growth of the business, particularly Allersys, which has drawn attention from its partner.