PR Newswire
GOTHENBURG, Sweden, Nov. 10, 2017
GOTHENBURG, Sweden, Nov. 10, 2017 /PRNewswire/ -- Following the strategic review and the proposed distribution and listing of the business area Patient & Post-Acute Care (now called Arjo), the Board of Directors of Getinge has decided on a revised strategy, new financial targets and present restated historical financial information for Getinge excluding Arjo.
New financial targets
As a result of the proposed distribution and listing of Patient & Post-Acute Care and the related area disinfection flushers, now called Arjo, the Board of Directors of Getinge has decided on new financial targets based on the revised strategy for Getinge excluding Arjo. Focus is on organic growth and Getinge foresees an organic market growth of 2-4% on average during 2017-2020 in the addressable market. Getinge's organic growth in net sales is expected to increase gradually during 2018 and move closer to expected market growth on a run-rate basis by the end of 2018.
The new financial targets are valid from January 1, 2018.
Revised strategy
The priorities for Getinge going forward are to strengthen the product and service offering in prioritized segments for the customers within the business areas Acute Care Therapies and Surgical Workflows and continue to use the global salesforce to penetrate geographically with existing products. Furthermore, the company will put additional focus and continue to develop an attractive offering towards selected parts of the growing value segment. Getinge has also the intention to introduce Life Science as a separate Business Area as from January 1, 2018.
"I am confident that our revised strategy and financial targets will create a more focused business and organization that is better positioned to develop market leading offerings for our customers," says Mattias Perjos, President and CEO of Getinge. "The Life Science business has many similarities with our Infection Control business when it comes to technology, but given the customized solutions offering within this segment we believe this setup will better realize further growth opportunities", he continues.
Getinge excluding Arjo
Getinge restated financial information
Getinge provides historical financial information excluding the discontinued operations within Arjo in two appendicies to this press release.
If the Extraordinary General Meeting on December 4, 2017, resolves on the distribution and listing of Arjo, Getinge will publish the results of the operations in Arjo separately, as discontinued operations in accordance with IFRS 5, in its year-end report, January 29, 2018.
Costs for creating an independent Arjo and transaction costs
Getinge has previously communicated that costs related to the planned distribution and listing and costs to create an independent Arjo are estimated to charge the group's result with SEK 400–500 M for 2017. For the period January to September in the current year, Getinge's result has been charged with SEK 360 M in respect of such costs. Of these, non-recurring restructuring costs in Arjo have accounted for SEK 144 M and increased operating costs in Arjo have accounted for the remaining SEK 216 M. In addition to the above costs, Getinge's equity will be charged with transaction costs that are estimated to amount to approximately SEK 147 M excluding tax expenses.
Telephone conference
A telephone conference with Getinge's President & CEO, Mattias Perjos, and Arjo's President & CEO, Joacim Lindoff, will be held at 09:00-10:00 CET, November 10, 2017. Please see dial in details below to join the conference:
Sweden: +46 (0)8 5065 3942
UK: +44 (0)330 336 9435
USA: +1 323 794 2551
Code: 3769823
A presentation will be held during the telephone conference. To access the presentation, please use this link: https://slideassist.webcasts.com/starthere.jsp?ei=1170039
Please join the event conference 5-10 minutes prior to the start time. You will be asked to provide the confirmation code.
A recording of the telephone conference will be available for 90 days via the following link: https://slideassist.webcasts.com/starthere.jsp?ei=1170039
This information is information 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, at 07:30 CET on November 10, 2017.
About Getinge
Getinge is a global provider of innovative solutions for operating rooms, intensive-care units, sterilization departments and for life science companies and institutions. Based on our first-hand experience and close partnerships with clinical experts, healthcare professionals and medtech specialists, we are improving the every-day life for people, today and tomorrow.
Appendix 1: Restated financial information – Getinge excluding Arjo
(pro forma, not according to IFRS 5)
The following tables show selected financial information for Getinge excluding Arjo (which represents the remaining business after the dividend), rolling 12 months, by the end of September 2017. Getinge excluding Arjo consists of the difference between Getinge's and Arjo's financial information adjusted for internal transactions. The information presented in the tables are not financial reports in accordance with IFRS and is thus not necessarily comparable to similar calculations in other companies and has some limitations as analytical tools.
Consolidated income statement (SEK M) | |||||
September 30, 2017 (R12) |
Getinge | |
Arjo | |
|
Net sales 1) |
30,124 | |
7,794 | |
22,558 |
Cost of goods sold |
-15,800 | |
-4,278 | |
-11,750 |
Gross profit |
14,324 | |
3,516 | |
10,808 |
Gross Profit Margin |
47.6% | |
45.1% | |
47.9% |
Selling expenses |
-6,458 | |
-1,444 | |
-5,014 |
Administrative expenses |
-3,595 | |
-1,191 | |
-2,404 |
Research and development costs |
-728 | |
-136 | |
-592 |
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