Siemens Healthineers, a leading German healthcare company, announced a decrease in net profit for the fourth quarter of fiscal 2023, primarily due to higher charges and taxes. However, the company is optimistic about its sales and adjusted earnings prospects for the coming year.
In the quarter ending September, net profit stood at 537 million euros ($574.6 million), compared to 630 million euros in the same period last year. On an adjusted basis, basic earnings per share experienced an 11% decline, amounting to 0.58 euros.
The decline in profitability was attributed to several factors, including the discontinued rapid Covid-19 antigen test business, increased interest rates, higher severance charges, and a higher tax rate.
Despite these challenges, the company witnessed a modest increase in revenue, reaching 6.06 billion euros compared to 6.00 billion euros in the previous year. This growth was primarily driven by the success of Siemens Healthineers' Varian radiation-oncology business and its imaging segment. On a comparable basis, quarterly revenue grew by 7.5%.
Analysts had expected Siemens Healthineers to report an adjusted earnings per share of 0.58 euros on revenue of 5.87 billion euros, according to consensus estimates provided by the company.
Looking ahead, Siemens Healthineers anticipates a healthy growth in comparable revenue of between 4.5% and 6.5% for the upcoming year, along with an adjusted earnings per share ranging from 2.10 euros to 2.30 euros.
Overall, Siemens Healthineers remains optimistic about its future performance and is committed to delivering strong results in the healthcare industry.
Written by Adria Calatayud