Dräger reports steady growth in first nine months of 2024

LÜBECK - Drägerwerk AG & Co. KGaA, a leading medical and safety technology company, has reported a 1.4 percent rise in order intake for the first nine months of 2024 compared to the same period last year, reaching approximately EUR 2,421 million. This growth is primarily attributed to the safety division, which saw a 6.5 percent increase in order intake.

Despite a decrease in demand for ventilators, particularly from China, the company's net sales nearly matched the strong prior-year figures, with a slight 0.4 percent dip to around EUR 2,295 million. The safety division continued its upward trajectory with a 5.5 percent rise in net sales, while the medical division experienced a 4.6 percent decline due to the base effects from the previous year.

The Group's gross margin improved slightly to 44.4 percent from 44.0 percent in 2023. Earnings before interest and taxes (EBIT) saw a modest increase of approximately four percent to EUR 80 million, with several one-time effects contributing around EUR 30 million to this figure.

In the third quarter alone, Dräger's order intake grew by 2.6 percent to around EUR 816 million, with the safety division registering a significant 11.9 percent increase. However, the medical division's order intake fell by 3.4 percent, largely due to weak performance in China. The Group's gross margin for the quarter stood at 43.5 percent, and EBIT was reported at EUR 24 million, which included a one-time effect from a building sale.

The company has confirmed its annual forecast, anticipating a net sales increase of 1.0 to 5.0 percent and an EBIT margin between 2.5 to 5.5 percent. Expectations are set for net sales growth in the lower half of the forecast range and an EBIT margin in the upper half.

Dräger is scheduled to release its full financial results for the first nine months on October 29, 2024. This performance overview is based on a press release statement from the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com