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25-Jul-2024

Drägerwerk AG & Co. KGaA: Dräger on track to meet annual forecast after a solid first half-year

EQS-News: Drägerwerk AG & Co. KGaA / Key word(s): Half Year Report/Half Year Results
Drägerwerk AG & Co. KGaA: Dräger on track to meet annual forecast after a solid first half-year
25.07.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

Dräger on track to meet annual forecast after a solid first half-year

  • Order intake slightly above the high prior-year level
  • Net sales still slightly down so far
  • EBIT around 17 percent above the prior-year figure
  • Annual forecast confirmed

Lübeck – Drägerwerk AG & Co. KGaA increased its order intake in the first half of 2024 thanks to good overall demand. At around EUR 1,604 million, order intake was around EUR 8 million above the high prior-year figure. Net sales decreased by 0.3 percent (net of currency effects) to EUR 1,520.5 million (6 months 2023: EUR 1,532.4 million) after Dräger had benefited from strong catch-up effects in the same period of the prior year as a result of the noticeable improvement in delivery capacity and a surge in demand for ventilators in China. Earnings before interest and taxes (EBIT) amounted to EUR 55.8 million (6 months 2023: EUR 47.7 million). The EBIT margin amounted to 3.7 percent (6 months 2023: 3.1 percent). In addition to the solid operating business performance, several one-time effects recognized in profit or loss contributed around EUR 20 million to EBIT. These included the sale of a non-core local business activity and the sale of a plot of land that was not required.

“Our business performed solidly overall in the first half of 2024,” says Stefan Dräger, Chairman of the Board of Drägerwerk Verwaltungs AG. “Demand for our Technology for Life continued unabated and net sales were almost on a par with the prior year despite the challenging comparative figures. On the earnings side, we continued to improve, making up for the shortfall in earnings from the first quarter in the second quarter.”

Continued strong demand in safety business
In the first half of 2024, the Group's order intake increased by 0.9 percent (net of currency effects) to EUR 1,604.3 million (6 months 2023: EUR 1,596.6 million). This was due in particular to the significant growth in the Americas region and the positive development in the Germany region.

In the safety division, order intake rose by 4.1 percent (net of currency effects) to EUR 704.3 million (6 months 2023: EUR 679.1 million). Almost all product categories recorded higher demand. The biggest growth driver was our occupational health and safety equipment.

In the medical division, order intake fell by 1.5 percent (net of currency effects) to EUR 900.1 million (6 months 2023: EUR 917.5 million). This is due in particular to the significantly lower demand for ventilators, which had been supported by an extraordinary surge in demand from China in the same period of the prior year. The significant increase in order volumes for anesthesia, thermoregulation and patient monitoring devices in particular had a positive effect.

Safety business continues to grow – medical business burdened by base effects
The safety division recorded an increase in net sales of 8.8 percent (net of currency effects) to EUR 674.2 million in the first half of 2024 (6 months 2023: EUR 621.6 million), due in particular to the good order situation.

In the medical division, net sales fell by 6.5 percent (net of currency effects) to EUR 846.3 million (6 months 2023: EUR 910.7 million). This was due in particular to the China effect described above. In the same period of the prior year, the division had also benefited from catch-up effects as a result of the noticeable improvement in delivery capacity.

Earnings benefit from one-time effects
In the first half of 2024, we sold our fire alarm systems business in the Netherlands. In the 2023 fiscal year, the business field’s net sales amounted to around EUR 20 million. However, there were only a few synergies with Dräger's core business. We have therefore exited this business. We also sold a plot of land in the USA that was not required. Overall, the one-time effects contributed around EUR 20 million to EBIT of EUR 55.8 million (6 months 2023: EUR 47.7 million).

The gross margin rose to 44.8 percent (6 months 2023: 44.0 percent) as a result of the increased share of net sales and the improved gross margin for the safety business. Our functional costs increased by 2.3 percent (net of currency effects). Earnings after taxes amounted to EUR 34.1 million (6 months 2023: EUR 28.6 million).

Business development in the second quarter
In the second quarter, order intake increased by 0.3 percent (net of currency effects) to EUR 793.5 million (Q2 2023: EUR 792.9 million). In the safety division, order intake rose by 2.0 percent (net of currency effects) to EUR 347.1 million (Q2 2023: EUR 340.7 million). In the medical division, it decreased by 1.0 percent (net of currency effects) to EUR 446.4 million (Q2 2023: EUR 452.2 million).

Dräger’s net sales increased by 2.0 percent (net of currency effects) to EUR 784.7 million (Q2 2023: EUR 771.3 million). The gross margin increased to 44.3 percent (Q2 2023: 43.1 percent). EBIT amounted to EUR 40.7 million (Q2 2023: EUR 18.7 million). The EBIT margin amounted to 5.2 percent (Q2 2023: 2.4 percent).

Annual forecast confirmed
Dräger confirms its outlook for the current fiscal year and expects net sales growth of 1.0 to 5.0 percent (net of currency effects) and an EBIT margin of 2.5 to 5.5 percent.

“Due to the continued moderate demand in the medical business, we now tend to expect net sales growth in the lower half of the forecast range. However, we have become more optimistic with regard to our profitability. We now believe that an EBIT margin in the upper half of the forecast range is more likely,” says Stefan Dräger.

Further information is available in the financial report at www.draeger.com.

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.
 

Key figures for the first six months
(€ million)
6M 2024 6M 2023 Change Net of cur-
rency effects
         
Order intake 1,604.3 1,596.6 +0.5 +0.9
Germany 385.7 373.1 +3.4 +3.4
Europe, Middle East, and Africa 613.7 616.9 -0.5 -0.6
Americas 349.5 305.0 +14.6 +13.7
Asia-Pacific 255.5 301.7 -15.3 -12.1
         
Order intake, medical division 900.1 917.5 -1.9 -1.5
Order intake, safety division 704.3 679.1 +3.7 +4.1
         
Net sales 1,520.5 1,532.4 -0.8 -0.3
Germany 346.4 342.8 +1.0 +1.0
Europe, Middle East, and Africa 617.1 578.1 +6.7 +6.6
Americas 330.5 318.1 +3.9 +3.6
Asia-Pacific 226.5 293.3 -22.8 -19.6
         
Net sales, medical division 846.3 910.7 -7.1 -6.5
Net sales, safety division 674.2 621.6 +8.5 +8.8
         
EBIT 55.8 47.7    
EBIT margin 3.7 3.1    
Earnings after income taxes 34.1 28.6    
         
EBIT margin, medical division -2.9 -0.3    
EBIT margin, safety division 11.9 8.1    
         
Employees 16,390 16,219    
         
         
Key figures for the second quarter
(€ million)
Q2 2024 Q2 2023 Change Net of cur-
rency effects
         
Order intake 793.5 792.9 +0.1 +0.3
Germany 173.5 172.3 +0.7 +0.7
Europe, Middle East, and Africa 301.7 328.1 -8.0 -8.1
Americas 189.1 161.6 +17.0 +16.3
Asia-Pacific 129.1 130.9 -1.3 +1.0
         
Order intake, medical division 446.4 452.2 -1.3 -1.0
Order intake, safety division 347.1 340.7 +1.9 +2.0
         
Net sales 784.7 771.3 +1.7 +2.0
Germany 176.4 180.5 -2.2 -2.2
Europe, Middle East, and Africa 315.3 297.0 +6.2 +6.0
Americas 174.0 158.0 +10.1 +10.1
Asia-Pacific 119.0 135.8 -12.4 -10.2
         
Net sales, medical division 428.8 440.8 -2.7 -2.3
Net sales, safety division 355.8 330.4 +7.7 +7.9
         
EBIT 40.7 18.7    
EBIT margin 5.2 2.4    
Earnings after income taxes 26.5 11.4    
         
EBIT margin, medical division -3.0 -2.9    
EBIT margin, safety division 15.1 9.5    
         
Employees 16,390 16,219    

 



25.07.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
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Language: English
Company: Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55
23558 Lübeck
Germany
Phone: +49 (0)451 882-0
Fax: +49 (0)451 882-2080
E-mail: info@draeger.com
Internet: www.draeger.com
ISIN: DE0005550602, DE 000 555 063 6, DE 000 555 071 9
WKN: 555060, 555063 Vorzüge, 555071 Genussschein D
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Stuttgart, Tradegate Exchange
EQS News ID: 1953403

 
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Last Updated: 25-Jul-2024