EQS-News: Drägerwerk AG & Co. KGaA: Dräger expects return to profitable growth in 2023
EQS-News: Drägerwerk AG & Co. KGaA
/ Key word(s): Annual Report/Forecast
Dräger expects return to profitable growth in 2023
Lübeck—Drägerwerk AG & Co. KGaA has increased its order intake in fiscal year 2022 by around three percent (net of currency effects) to EUR 3,284.7 million (12 months 2021: EUR 3,087.8 million). However, net sales and earnings declined significantly. Net sales fell by 11.5 percent (net of currency effects) to EUR 3,045.2 million (12 months 2021: EUR 3,328.4 million). Earnings before interest and taxes (EBIT) amounted to EUR -88.6 million (12 months 2021: EUR 271.7 million). The EBIT margin was -2.9 percent (12 months 2021: 8.2 percent). For 2023, Dräger expects a recovery in business development. “2022 was a very challenging year. Demand for our ›Technology for Life‹ increased despite the normalization of the corona-related business, but our net sales and earnings development disappointed. In 2023, we want to return to profitable growth,” says Stefan Dräger, Chairman of the Executive Board of Drägerwerk Verwaltungs AG. Increased order intake, but delayed sales recognition However, the potential sales revenue from the high order backlog could not be realized to the usual extent due to significant disruptions in global supply chains and the limited availability of certain electronic components required for the final assembly and delivery of some products. Net sales therefore declined by 11.5 percent net of currency effects and by 8.5 percent in nominal terms. Good demand in both divisions In the safety division, order intake in 2022 increased by more than eight percent net of currency effects. Growth was driven in particular by gas detection technology, respiratory and personal protection products as well as occupational health and safety equipment, but business with engineered solutions and with services also saw a significant increase. In nominal terms, order intake in the safety business increased by almost twelve percent. Net sales declined significantly in both divisions in 2022. Net of currency effects, the medical business decreased by 15 percent and the safety business by around six percent. Earnings under pressure Net sales and earnings improvement in the fourth quarter Dräger's net sales increased by 7.3 percent (net of currency effects) in the fourth quarter to EUR 1,018.2 million (Q4 2021: EUR 925.5 million). This was due to an improvement in delivery capability as a result of better availability of the required components in some cases. Gross margin was just above the prior-year figure at 41.0 percent (Q4 2021: 40.8 percent). EBIT amounted to EUR 59.7 million, more than quadrupling compared to the prior-year quarter (Q4 2021: EUR 14.7 million). This was due in particular to the higher sales volume and lower procurement costs as a result of improved material availability. In addition, the price increases implemented earlier in the year had a positive impact on earnings. At 5.9 percent, EBIT margin was also significantly higher than the prior-year figure (Q4 2021: 1.6 percent). Return to growth and profitability expected for 2023 “In 2023, we expect a further gradual improvement in delivery performance,” says Stefan Dräger. “Even though we will continue to have higher costs for hard-to-find parts for the time being, this will allow us to realize sales from our high order backlog much faster than last year. In addition, further price increases will help us return to profitability.” Further information is available in the financial report at www.draeger.com. Disclaimer
09.03.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
Language: | English |
Company: | Drägerwerk AG & Co. KGaA |
Moislinger Allee 53-55 | |
23558 Lübeck | |
Germany | |
Phone: | +49 (0)451 882-0 |
Fax: | +49 (0)451 882-2080 |
E-mail: | [email protected] |
Internet: | www.draeger.com |
ISIN: | DE0005550602, DE 000 555 063 6, DE 000 555 071 9 |
WKN: | 555060, 555063 Vorzüge, 555071 Genussschein D |
Indices: | SDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Stuttgart, Tradegate Exchange |
EQS News ID: | 1578065 |
End of News | EQS News Service |
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1578065 09.03.2023 CET/CEST
Drägerwerk AG & Co. KGaA ST Stock
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