Getinge and GHP Speciality Care report steady Q1 figures

Two Swedish healthcare companies have published their quarter earnings report, showing a strong growth in both.

Swedish medical technology company Getinge has reported a growth in organic sales.

For the first quarter, it reported a profit of Kr17m (US$1.8m) on revenues that were up 6% to Kr5.5bn. Adjusted profits came in at Kr138m.

The group has had a difficult couple of years. Quarterly restructuring costs for the group were Kr108m in a statement it said that “the measures are expected to start making a positive contribution to profitability in the second half of 2019”.

All major markets performed strongly, particularly China, where sales grew by more than 20%.

Getinge chief executive Mattias Perjos said: “We showed strong organic growth and improved operating margin in the first quarter. It is also positive to see that our gross margin is continuing to move in the right direction sequentially and that our operating expenses are declining in relation to sales”.

He added that he would focus his attention on operating costs. The results were welcomed by the market and its shares jumped as much as 10% after the announcement.

Elsewhere, Swedish healthcare provider GHP Speciality Care showed strong growth in its Q1 report.

Profits were up 7.9% to Kr14m with revenues up 18.6% to Kr278.7m.

Revenues increased in the Nordics as the company added a new operating theatre in Copenhagen and recruited more skilled specialists for its clinics.

The group’s international segment had what it called “an eventful quarter”. Although it continued to develop four hospitals in the UAE, revenues were down and profits more than halved to Kr2.2m.

GHP’s third segment, called Vårdsamverkan (a collaboration with insurance companies) remains in a startup phase. Although revenues were up dramatically, to Kr31.3m, it remains loss-making.

Daniel Öhman, chief executive officer of GHP, said: “We have started the year with GHP’s best first quarter so far and once again we have a quarter with good organic growth. We have a strong culture of continuous development, with good momentum in each individual clinic. This is the foundation of the good quality and financial results. Furthermore, it attracts new employees and results in good growth.”