Additional quality and supply challenges impacting Getinge's earnings in Q2 and FY 2023
Getinge expects a negative impact of approximately SEK 400 M on EBITA in Q2 2023. The main reasons are additional quality and supply challenges in May-June within Acute Care Therapies' two product categories Cardiopulmonary and Cardiac Assist. The company foresees a negative impact on sales, mix and earnings for the rest of the year.
Getinge has previously informed about potential breaches in sterile packaging of consumables for ECMO therapy (HLS- and PLS-sets) within the product category Cardiopulmonary. In May 2023, Getinge notified customers globally about a voluntary medical device removal for Quadrox, which is expected to impact net sales for the rest of the year. Getinge is actively working to resolve these quality challenges. For consumables, parallel tracks are ongoing to improve existing packaging as well as develop a new packaging solution foreseen to be ready by end of 2023 - H1 2024, followed by an application for regulatory approval.
Within Cardiac Assist, Getinge is facing quality related issues for Intra-Aortic Balloon Pump (IABP) disposables (balloons) and hardware (pumps), which has led to loss of sales and additional costs in the quarter. The ongoing global field actions to resolve the quality issues with regards to the pumps, are predicted to be completed by end of 2023 - H1 2024, followed by an application for regulatory approval. In parallel, component shortages for pumps have been ongoing since 2022 and is anticipated to be solved from Q3 2023. A recent quality issue related to a component for the balloons is also impacting global net sales and earnings in the quarter, and shipping is expected to start in the second half of 2023.
Getinge is actively working to resolve these challenges, however, unforeseen events may impact the above-mentioned timelines.
A teleconference with President & CEO Mattias Perjos will be held on June 19, 2023, at 2:15-2:45 pm CEST. Register via this link (https://conference.financialhearings.com/teleconference/?id=5001891) to participate in the teleconference.
After registering, you will receive a telephone number and a conference ID to log in to the teleconference. You can ask questions verbally at the teleconference. A presentation will be held during the telephone conference.
To access the presentation, click on the following link (https://tv.streamfabriken.com/tba-press-conference-june-2023). A recording will be available here (https://tv.streamfabriken.com/tba-press-conference-june-2023) for three years.
Lars Mattsson, Head of Investor Relations
Phone: +46 (0)10 335 0043
Email: [email protected]
Anna Appelqvist, Vice President Corporate Communications
Phone: +46 (0)10 335 5906
Email: [email protected]
This information is such that Getinge AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on June 19, 2023, at 1.50 pm CEST.
With a firm belief that every person and community should have access to the best possible care, Getinge provides hospitals and life science institutions with products and solutions that aim to improve clinical results and optimize workflows. The offering includes products and solutions for intensive care, cardiovascular procedures, operating rooms, sterile reprocessing and life science. Getinge employs over 10,000 people worldwide and the products are sold in more than 135 countries.