GE HealthCare Reports Third Quarter 2023 Financial Results with $4.8 Billion in Revenue

Nov 02, 2023 00:02 CST Updated 00:02

GE Healthcare

Digital Solution Provider

Source: Siyu MedTech; Editor: Jacky

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On October 31, 2023, GE Healthcare (Nasdaq: GEHC) announced its financial results for the third quarter ended September 30, 2023:Reported revenue reached $4.8 billion, a year-over-year increase of 5%.Net profit attributable to shareholders was US$375 million, a year-on-year decrease of 23%.

# Financial Performance of the Company in the Third Quarter of 2023

In the third quarter of 2023, GE Healthcare, driven by sales volume and pricing,Reported revenue reached $4.8 billion, a year-over-year increase of 5%, with organic revenue growing 6% year over year.The company's total order-to-shipment ratio (defined as total orders divided by total revenue) for this quarter was 1.03 times, with the order amount exceeding revenue. The total order value grew organically by 1%.

GE Healthcare's attributable net profit was $3.75 billion, compared to $4.87 billion in the same period last year. Adjusted EBIT was $7.44 billion, compared to $7 billion last year.Net profit margin was 7.8%, compared to 10.6% in the same period last year, a decrease of 280 basis points, mainly due to the impact of independent interest expenses. Adjusted EBIT margin was 15.4%, compared to 15.3% last year, an increase of 10 basis points.

Adjusted earnings per share were $0.99, compared to $1.20 in the previous year, representing a decrease of $0.21 from the previous year.Operating cash flow was $650 million, compared to $622 million in the same period last year, representing a year-over-year increase of $28 million, primarily driven by the company's strong inventory management.Free cash flow was $570 million, an increase of $22 million year-over-year.

GE Healthcare President and CEO Peter Arduini said, "We have achieved strong revenue growth for another quarter, and our margin performance shows progress in productivity and pricing. Our cash performance is robust due to the use of lean principles to improve inventory management. We remain confident about the outlook for 2023 and will continue to deliver innovative products to our customers and patients."

# Performance of Each Business in the Third Quarter of 2023

01 Imaging

Reported revenue and organic revenue increased by 5% year-over-year, reaching$2.6 billion。

Revenue growth was driven by molecular imaging, computed tomography, and magnetic resonance due to supply chain improvements, pricing, and new product introductions.

The segment’s earnings before interest and taxes (EBIT) were $318 million compared to $267 million in the prior year, with an EBIT margin of 12.1% versus 10.6% in the prior year, as productivity, price, and volume gains were partly offset by planned investments.

02 Ultrasound

Following double-digit growth in the previous quarter, GE Healthcare's ultrasound division reported a 1% decline in both reported revenue and organic revenue.$8.15 billion。

The segment’s earnings before interest and taxes were $179 million compared to $211 million in the prior year. The segment’s earnings before interest and taxes margin was 22.0% compared to 25.6% in the prior year due to planned investments including Caption Health and inflation, partially offset by productivity.

03 Patient Care Solutions

Reported revenue and organic revenue increased by 9% year-over-year, reaching$7.64 billion。

Due to improvements in the supply chain and rising prices, sales drove strong revenue growth. The segment's EBIT was $80 million, compared to $65 million in the previous year.

Driven by productivity, sales volume, and pricing, the segment’s EBIT margin was 10.5%, compared to 9.3% in the prior year, but partially offset by planned investments and inflation.

04 Medical Diagnostics

Report revenue as$5.89 billion, an increase of 13% year-over-year, with organic revenue growing 12% year-over-year.

Pricing strategies and continued sales growth drove strong revenue increases. The segment’s earnings before interest and taxes were $166 million, compared to $159 million in the prior year.

Due to raw material inflation and planned investments, the segment’s EBIT margin was 28.2%, compared to 30.5% in the prior year, but was partially offset by price, productivity, and volume.

# Highlights of Development and Innovation in the Third Quarter

GE Healthcare Collaborates with Novo Nordisk to Advance Non-Invasive Ultrasound Treatment for Type 2 Diabetes and Obesity
With the joining of Stanford University School of Medicine, an increasing number of medical institutions under GE Healthcare have begun utilizing its new photon-counting CT technology for human subject research, further expanding the scale of development.
GE Healthcare Launches Enhanced Venue Series Point-of-Care Ultrasound Systems with AI-Driven Caption Guidance.

▲Image from the official website (same below)

GE Healthcare Receives $44 Million Grant to Develop AI-Assisted Ultrasound Technology Aimed at Improving Treatment Outcomes in Low- and Middle-Income Countries
Mayo Clinic and GE Healthcare Launch Strategic Collaboration to Advance Innovations in Medical Imaging and Theranostics.
GE Healthcare Launches Vscan Air SL, a Wireless Handheld Ultrasound Device for Rapid Assessment of Cardiac and Cardiovascular Patients.

▲Figure:Vscan Air SL

GE Healthcare Launches CardioVisio for Atrial Fibrillation, a Patient-Centered Digital Clinical Decision Support Tool Enabling Precision Care.
GE Healthcare's Portrait Mobile Receives FDA Approval, a First-of-its-kind Wireless Monitoring Solution to Help Detect Patient Deterioration Earlier.

# About GE Healthcare

On January 4, 2023, GE Healthcare (Nasdaq: GEHC) announced that the previously announced spin-off from GE Group (NYSE: GE) has been completed. GE Healthcare will begin trading on the Nasdaq Stock Exchange as an independent company with the stock code "GEHC," effective at market open. GE Healthcare became the first company in Waukesha, Wisconsin, USA, to remotely ring the Nasdaq opening bell for its IPO.

GE Healthcare has approximately 51,000 employees worldwide, serving over 1 billion patients annually across more than 160 countries. The company invests over 1 billion USD in R&D each year, with an annual revenue of approximately 18 billion USD. It has an installed base of more than 4 million units globally, covering the company's four business segments —— Imaging, Ultrasound, PCS (Patient Care Solutions), and Pharmaceutical Diagnostics.

Editor-in-Chief | Zhao Qing Reviewed by | Yi He Typeset by | Miya