Siemens Healthineers fully on track to meet the targets
Erlangen, Germany | May 03, 2018
- Comparable revenue growth of four percent driven by strong Imaging Segment
- Adjusted profit margin rises to 17.4 percent despite negative currency effects
- Market launch of the Atellica Solution1 laboratory diagnostics system on course with more than 250 analyzers shipped by end of Q2
- Full year guidance reaffirmed
Siemens Healthineers AG has posted good business figures in the first quarter following its successful initial public offering on March 16, 2018. Year-over-year revenue was up four percent at EUR 3.2 billion on a comparable basis. Despite continuing negative currency effects, the profit margin adjusted for non-recurring effects increased by 90 basis points to 17.4 percent, while adjusted profit was stable at EUR 560 million compared to the second quarter of 2017. Adjusted net income increased by 26 percent to EUR 428 million. Earnings per share amount to EUR 0.30. The market launch of the Atellica Solution laboratory diagnostics system is on course; by the end of the second quarter, more than 250 systems had been shipped.
"With a strong performance the team of Siemens Healthineers has once again demonstrated the operational strength of our businesses, while preparing for our successful IPO", said Bernd Montag, CEO Siemens Healthineers. "Based on the good quarterly figures, we confirm our outlook for the full year." Siemens Healthineers continues to expect a comparable revenue growth to be in the range of three to four percent for the fiscal year ending September 30, 2018 compared to the previous fiscal year, and an adjusted profit margin of between 17 and 18 percent.
The Imaging Segment generated revenue of EUR 1.9 billion, corresponding to a year-over-year increase of six percent on a comparable basis. Comparable revenue growth in all three regions with significant growth in the U.S., China and Latin America was driven by an increase in equipment sales and services with strong increase in MR, CT and Ultrasound. Adjusted profit was up from EUR 346 million in the previous year's quarter to EUR 376 million, while the adjusted profit margin climbed by 200 basis points to 19.3 percent.
In a highly competitive market environment, the like-for-like revenue of the Advanced Therapies Segment increased by two percent, amounting to EUR 352 million. The geographical focus in the past quarter was on Europe/Middle East/Africa. Due to negative currency effects, and increased investments in research and development, the adjusted second-quarter profit was EUR 56 million, compared to EUR 80 million the previous year. The adjusted profit margin was 16.0 percent, following 21.2 percent in the previous quarter.
In the Diagnostics Segment the solid revenue growth in Europe/Middle East/Africa and the slight growth in the Asia-Pacific region were offset by consumer restraint in Americas – revenue was EUR 970 million in the second quarter, equivalent to a low growth on a comparable basis. The adjusted profit margin was virtually stable year-over-year at 13.6 percent, equivalent to adjusted profits of EUR 132 million – after EUR 143 million during the same period the previous year. The market launch of the new Atellica Solution laboratory diagnostics system is on schedule. Diagnostics had a successful start into the third quarter with the signing of a contract for more than 50 systems with the Brazilian Hermes Pardini Group, the country's leading and fastest-growing laboratory diagnostics provider. The goal remains to place 800 to 1,000 Atellica Solution units by the end of the current fiscal year.
Following the initial public offering on March 16, the Siemens Healthineers AG share price developed positively. The reorganization of the operating units and the reduction of decision-making levels make the company leaner, more efficient and more agile. The integration of the blood gas portfolio of Epocal and the acquisition of molecular diagnostics company Fast Track Diagnostics are important steps for Siemens Heathineers to strengthen its laboratory diagnostics business. At the European Radiology Congress (ECR, February 28 to March 4, 2018 in Vienna), the particularly lightweight and adaptable Acuson Juniper ultrasound system based on a completely new platform and the new Magnetom Sola2 magnetic resonance scanner were presented in the field of medical imaging. The new systems are planned to support healthcare providers in expanding precision medicine, transforming care delivery and improving patient experience.
1 Product availability varies by country.
2 The Magnetom Sola is not commercially available in the U.S. and some other countries. Due to regulatory reasons its future availability cannot be guaranteed. Please contact your local Siemens Healthineers organization for further details.
Siemens Healthineers enables healthcare providers worldwide to increase value by empowering them on their journey towards expanding precision medicine, transforming care delivery, improving patient experience and digitalizing healthcare. A leader in medical technology, Siemens Healthineers is constantly innovating its portfolio of products and services in its core areas of diagnostic and therapeutic imaging and in laboratory diagnostics and molecular medicine. Siemens Healthineers is also actively developing its digital health services and enterprise services.
In fiscal 2017, which ended on September 30, 2017, Siemens Healthineers generated revenue of €13.8 billion and profit of €2.5 billion and has about 48,000 employees worldwide. Further information is available at www.siemens-healthineers.com.
This document contains statements related to our future business and financial performance and future events or developments involving Siemens Healthineers that may constitute forward-looking statements. These statements may be identified by words such as "expect," "look forward to," "anticipate" "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens Healthineers' management, of which many are beyond Siemens Healthineers' control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures. Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Siemens Healthineers may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens Healthineers neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.
This document includes – in IFRS not clearly defined – supplemental financial measures that are or may be non-GAAP financial measures. These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens Healthineers' net assets and financial positions or results of operations as presented in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe similarly titled financial measures may calculate them differently.
Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Reference Number: : PR-20180503015SHS