Drägerwerk AG & Co. KGaA: Preliminary figures H1 2024: Earnings above prior year

Drägerwerk AG & Co. KGaA / Key word(s): Preliminary Results/Forecast
Drägerwerk AG & Co. KGaA: Preliminary figures H1 2024: Earnings above prior year

12-Jul-2024 / 18:47 CET/CEST
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Ad-hoc notification in accordance with Sec. 17 of the MAR

Drägerwerk AG & Co. KGaA: Preliminary figures H1 2024: Earnings above prior year

Lübeck, July 12, 2024 – Dräger's earnings in the first half of the year were up on the prior-year figure despite a slight decline in net sales. Net sales and earnings in the first quarter were still lower than in the prior year, mainly due to base effects. In the second quarter, Dräger was able to make up for the shortfall in earnings. At around EUR 56 million, earnings before interest and taxes (EBIT) were up around 16.9 percent on the prior-year figure in the first half of 2024 (6 months 2023: EUR 47.7 million). In addition to the solid operating business performance, several one-time effects contributed around EUR 20 million to EBIT. Among other things, these included the sale of a non-core local business activity and the sale of property.

At around EUR 1,520 million, net sales were 0.3 percent (net of currency effects; nominal: -0.8 percent) below the prior-year figure (6 months 2023: EUR 1,532.4 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 a surge in demand for ventilators in China. As expected, both effects were absent in the first half of 2024.

The safety division continued its net sales growth in the first half of 2024 and recorded an increase of 8.8 percent (net of currency effects; nominal: 8.5 percent) to around EUR 674 million (6 months 2023: EUR 621.6 million). The medical division recorded a decline of 6.5 percent (net of currency effects; nominal: -7.1 percent) to around EUR 846 million (6 months 2023: EUR 910.7 million), which is mainly due to the aforementioned base effects in the prior year. The Group's gross margin rose to around 44.8 percent (6 months 2023: 44.0 percent). The EBIT margin amounted to around 3.7 percent (6 months 2023: 3.1 percent).

Preliminary order intake rose by 0.9 percent (net of currency effects; nominal: 0.5 percent) to around EUR 1,604 million and was therefore above the high prior-year level (6 months 2023: EUR 1,596.6 million). In the safety division, order intake increased by 4.1 percent (net of currency effects; nominal: 3.7 percent) to around EUR 704 million (6 months 2023: EUR 679.1 million). In the medical division, it decreased by 1.5 percent (net of currency effects; nominal: -1.9 percent) to around EUR 900 million (6 months 2023: EUR 917.5 million). This was due in particular to the significant decline in demand for ventilators, which had still been driven by China in the first quarter of 2023.

Business performance in the second quarter of 2024
In the second quarter, order intake increased by 0.3 percent (net of currency effects; nominal: 0.1 percent) to around EUR 794 million (Q2 2023: EUR 792.9 million). In the safety division, order intake rose by 2.0 percent (net of currency effects; nominal: 1.9 percent) to around EUR 347 million (Q2 2023: EUR 340.7 million). In the medical division, it decreased by 1.0 percent (net of currency effects; nominal: -1.3 percent) to around EUR 446 million (Q2 2023: EUR 452.2 million).

Net sales rose by 2.0 percent (net of currency effects; nominal: 1.7 percent) to around EUR 785 million (Q2 2023: EUR 771.3 million). The safety division continued its growth and recorded an increase of 7.9 percent (net of currency effects; nominal: 7.7 percent) to around EUR 356 million (Q2 2023: EUR 330.4 million). The medical division recorded a decline of 2.3 percent (net of currency effects; nominal: -2.7 percent) to around EUR 429 million (Q2 2023: EUR 440.8 million). This is due in particular to the weak development in China. The Group's gross margin rose to around 44.3 percent (Q2 2023: 43.1 percent). EBIT amounted to around EUR 41 million (Q2 2023: EUR 18.7 million). The EBIT margin amounted to around 5.2 percent (Q2 2023: 2.4 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 the EBIT margin to be between 2.5 and 5.5 percent. Due to the continued moderate development of demand in the medical division, we now tend to expect net sales growth in the lower half of the forecast range. In addition, we now consider an EBIT margin in the upper half of the forecast range to be more likely due to the positive one-off effects in current earnings.

The full results for the first six months of the fiscal year will be published on July 25, 2024.

Drägerwerk AG & Co. KGaA
Moislinger Allee 53–55
23558 Lübeck, Germany
www.draeger.com

Investor Relations:
Thomas Fischler
Tel. +49 451 882-2685
thomas.fischler@draeger.com

Corporate Communications:
Melanie Kamann
Tel. +49 451 882-3998
melanie.kamann@draeger.com

Disclaimer
This ad hoc report 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. Please go to Investor Relations / Definitions of financial indicators at www.draeger.com for information on alternative performance measures used.

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