Siemens healthineers Q3 2024 $SHL (-1,01%)

Financial performance:

• Revenue: Siemens Healthineers achieved comparable revenue growth of 5.2% in fiscal year 2024, excluding antigen testing. Including these tests, growth amounted to 4.7%, despite ongoing challenges in China.
• Adjusted EBIT: Adjusted EBIT increased to around €3.5 billion, with a margin improvement of 70 basis points to 15.7%.
• Net profit: Net profit increased by 28% to €1.959 billion.

Balance sheet overview:

• As at September 30, 2024, total assets amounted to EUR 46.055 billion, down slightly compared to EUR 46.684 billion in the previous year. Cash and cash equivalents, on the other hand, increased to EUR 2.683 billion, compared to EUR 2.247 billion in the previous year.

Details of the profit and loss account:

• Turnover: Turnover in the 2024 financial year amounted to EUR 22.363 billion, compared to EUR 21.680 billion in the 2023 financial year.
• Adjusted basic earnings per share: This increased from 2.14 euros to 2.23 euros.

Cash flow overview:

• Free cash flow (FCF): FCF increased by over 60% to EUR 2.1 billion, boosted by higher profits and lower inventories.
• Operating cash flow: Operating cash flow increased to 2.826 billion euros, compared to 2.119 billion euros in the previous year.

Key figures and profitability metrics:

• EBIT margin: The adjusted EBIT margin improved to 15.7%, compared to 15.0% in the previous year.
• Cash conversion rate: The cash conversion rate increased from 0.7 in the 2023 financial year to 0.9.

Segment information:

• Imaging: Sales increased to EUR 12.267 billion, with an adjusted EBIT margin of 21.1%.
• Diagnostics: Sales fell slightly to EUR 4.417 billion, but the adjusted EBIT margin improved significantly to 5.3%.
• Varian: Sales increased to €3.866 billion, with a margin of 16.5%.
• Advanced Therapies: Sales amounted to 2.075 billion euros, with a margin of 16.3%.

Competitive position:

• Siemens Healthineers continues to expand its market share in the Imaging, Varian and Advanced Therapies segments, supported by significant innovations and a strong equipment book-to-bill ratio of 1.11.

Forecasts and management commentary:

• For fiscal year 2025, Siemens Healthineers expects mid single-digit revenue growth in the Imaging and Advanced Therapies segments and high single-digit growth in the Varian segment. Margin expansion is forecast for all segments.

Risks and opportunities:

• Challenges: Currency-related effects and the difficult market conditions in China.
• Opportunities: Expansion of access to healthcare services and continuous innovation.

Summary of results:

Positive aspects:

• Significant increase in free cash flow of over 60%.
• Strong sales growth in the Americas and EMEA regions.
• Improvement in the adjusted EBIT margin to 15.7%.
• Successful market share gains in key segments.
• Positive net profit growth of 28%.

Negative aspects:

• Decline in sales in the Chinese market.
• Negative impact of currency effects on margins.
• Decline in sales in the Diagnostics segment.
• Increased provisions for refunds in Italy.
• Challenges in the Chinese market impacting overall growth.