Getinge 2022 Annual Report
Getinge 2022 Annual Report
Introduction
Strategy
Corporate Governance
Annual Report
Sustainability Report
Other information
Contents
Administration Report
Operation and structure
Getinge is a global provider of products and solutions for operating
rooms, intensive-care units and sterilization departments serving
39 countries and with proprietary production in nine countries.
Operations are conducted in three business areas - Acute Care
Therapies, Life Science and Surgical Workflows.
Sales take place through our own subsidiaries and distributors
in 133 countries. Approximately 72% of sales are conducted
through the Group's sales companies and the remaining 28% are
sold by agents and distributors in markets where Getinge often
lacks its own representation. Production is conducted at a total
of 21 facilities in France, China, the Netherlands, Poland, the UK,
Sweden, Türkiye, Germany and the US.
Financial overview
Net sales increased 4.6% during the year to SEK 28,292 M
(27,049). Net sales decreased organically by 5.4%. In Acute Care
Therapies, sales amounted to SEK 15,285 M (15,527), corresponding
to an organic decline of 12.2%. Life Science's net sales increased
organically by 3.6% to SEK 4,026 M (3,558). Surgical Workflows'
sales in 2022 amounted to SEK 8,981 M (7,965). Net sales increased
organically by 3.6%.
Americas represented the Group's largest market, accounting
for 40% (38) of sales, followed by EMEA at 36% (37). APAC account-
ed for 24% (25) of sales.
Adjusted EBITA
Adjusted EBITA before restructuring and acquisition costs and other
items affecting comparability amounted to SEK 4,281 M (5,212).
Operating profit
The Group's operating profit amounted to SEK 3,626 M (4,371).
Adjusted for restructuring and acquisition costs and other items
affecting comparability, operating profit amounted to SEK 4,096 M
(4,939), corresponding to 14.5% (18.3) of net sales.
Net financial items
Net financial items amounted to SEK-154 M (-183), of which net
interest items comprised SEK-151 M (-142).
Profit before tax
The Group's profit before tax declined to SEK 3,472 M (4,188).
Taxes
The Group's tax expense amounted to SEK-956 M (-1,187), entailing
a tax rate of 28% (28).
Tied-up capital
Inventories amounted to SEK 6,232 M (4,767) and accounts receiv-
able to SEK 5,275 M (4,695). The return on equity was 8.9% (12.9).
Goodwill totaled SEK 22,512 M (19,681) at the end of the fiscal year.
Investments
Investments in intangible assets and tangible assets amounted
to SEK 1,136 M (930). Investments primarily pertained to product
development, production facilities, production tools and IT
projects. Investments related to acquisitions of businesses
amounted to SEK 365 M (715), primarily relating to the acquisition
of Fluoptics SAS.
Financial position and equity/assets ratio
Consolidated net interest-bearing debt fell to SEK 2,602 M (3,609).
The equity/assets ratio amounted to 58.5% (56.5) and the net
debt/equity ratio to 0.09 (0.14). Equity at year-end amounted to
SEK 30,453 M (25,176).
Cash flow
Cash flow from operating activities amounted to SEK 3,367 M
(6,560).
Restructuring activities and productivity improvements
Restructuring costs in 2022 amounted to SEK 206 M (61), primarily
aimed at adjusting production capacity and the sales organization,
and reducing the cost base. These costs are mainly related to
personnel reductions and savings from the activities are expected
to generate effects throughout 2023.
Class of shares and share data
For information regarding trading of shares in the company, the
number of shares, shareholders, the classes of shares and the
rights associated with these classes of share in the company, refer
to the Getinge share section on pages 178-179.
Events during the year
Russian invasion of Ukraine
Getinge conducts operations in Russia in accordance with inter-
national sanctions and regulations via a small sales company. The
activities in the country are currently limited to fulfilling existing
customer commitments and selectively participating in tender
processes. Since Getinge's mission is to save lives irrespective of
nationality and background, Getinge has decided not to fully with-
draw from the Russian market. The Group's sales and net assets in
Russia and Ukraine in 2022 represented less than 1% of the Group's
total net sales and equity.
Despite the limited direct impact on Getinge's operations in
Russia and Ukraine, the Russian invasion of Ukraine may never-
theless have a negative impact on the development of the Group's
earnings and position. It is difficult at the current time to assess
the future consequences of the conflict and its impact on the
Group. However, Getinge does not conduct any manufacturing
operations in either Russia or Ukraine and has no major suppliers
in these countries. A potential negative effect is that the supply of
natural gas at the Group's plants in Poland and Germany may be
restricted, and mitigating measures have been taken to alleviate
the effects of such a situation.
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