Dräger with good demand in the first nine months of 2024 – Biotech Investments

Dräger with good demand in the first nine months of 2024

• Order intake exceeds the high prior-year level
• Net sales almost reach the strong prior-year figure
• EBIT up around four percent
• Annual forecast confirmed

Lübeck – Dräger’s preliminary order intake rose by 1.4 percent (net of currency effects; nominal: 0.7 percent) to around EUR 2,421 million in the first nine months of 2024 and was therefore higher than the prior year’s high level (9 months 2023: EUR 2,403.3 million). In the safety division, order intake rose by 6.5 percent (net of currency effects; nominal: 6.0 percent) to around EUR 1,052 million (9 months 2023: EUR 992.7 million). In the medical division, it decreased by 2.1 percent (net of currency effects; nominal: -3.0 percent) to around EUR 1,368 million (9 months 2023: EUR 1,410.7 million). This was due in particular to the significant decline in demand for ventilators, which had still been supported by China in the first quarter of 2023.

At around EUR 2,295 million, net sales were 0.4 percent (net of currency effects; nominal: -1.1 percent) below the prior-year figure (9 months 2023: EUR 2,320.9 million). In the prior-year period, Dräger had benefited from strong catch-up effects as a result of the noticeable improvement in delivery capacity and the surge in demand for ventilators in China. As expected, both effects were absent in the first nine months of 2024.

The safety division continued its net sales growth in the first nine months of 2024 and recorded an increase of 5.5 percent (net of currency effects; nominal: 5.0 percent) to around EUR 1,010 million (9 months 2023: EUR 961.7 million). The medical division recorded a decline of 4.6 percent (net of currency effects; nominal: -5.4 percent) to around EUR 1,285 million (9 months 2023: EUR 1,359.2 million), which is attributable in particular to the aforementioned base effects in the prior year. The Group’s gross margin rose to around 44.4 percent (9 months 2023: 44.0 percent).

Earnings before interest and taxes (EBIT) increased by around four percent to around EUR 80 million (9 months 2023: EUR 76.9 million). In addition to the operating business performance, several one-time effects with an impact on earnings contributed around EUR 30 million to EBIT in the course of the first nine months.

Business performance in the third quarter of 2024
In the third quarter, order intake increased by 2.6 percent (net of currency effects; nominal: 1.2 percent) to around EUR 816 million (Q3 2023: EUR 806.7 million). In the safety division, it increased significantly by 11.9 percent (net of currency effects; nominal: 10.9 percent) to around EUR 348 million (Q3 2023: EUR 313.5 million). In the medical division, it decreased by 3.4 percent (net of currency effects; nominal: -5.0 percent) to around EUR 468 million (Q3 2023: EUR 493.1 million).

At around EUR 775 million, net sales were 0.7 percent below (net of currency effects; nominal: -1.8 percent) the prior-year figure (Q3 2023: EUR 788.5 million). The safety division recorded a decrease of 0.6 percent (net of currency effects; nominal: -1.3 percent) to around EUR 336 million (Q3 2023: EUR 340.1 million). The medical division recorded a decline of 0.8 percent (net of currency effects; nominal: -2.1 percent) to around EUR 439 million (Q3 2023: EUR 448.4 million). This is due in particular to the weak development in China. The Group’s gross margin stood at around 43.5 percent (Q3 2023: 44.0 percent). EBIT amounted to around EUR 24 million (Q3 2023: EUR 29.2 million). This included a one-time effect of around EUR 10 million from a sale of a building. The EBIT margin amounted to around 3.1 percent (Q3 2023: 3.7 percent).

Dräger confirms its outlook for the current fiscal year and expects net sales to increase by 1.0 to 5.0 percent (net of currency effects) and an EBIT margin of 2.5 to 5.5 percent. We continue to expect net sales growth in the lower half and an EBIT margin in the upper half of the forecast range.

The full results for the first nine months of the fiscal year will be published on October 29, 2024.

Disclaimer
This press release contains statements on the future development of Dräger Group. These forward-looking statements are based on the current expectations, presumptions, and forecasts of the Executive Board as well as the information available to date. They were compiled to the best of the company’s knowledge. Dräger does not provide any warranty nor assume any responsibility for the future developments and results described above. These are dependent on a number of factors. They entail various risks and contingencies outside of the company’s influence and are based on assumptions which could prove to be incorrect. Dräger does not assume any responsibility for updating the forward-looking statements contained in this report. This does not infringe any legal stipulations on the adjustment of forecasts. Information on the financial indicators used (incl. alternative performance measures) can be found on our corporate website www.draeger.com in our Investor Relations section.