Drägerwerk AG & Co. KGaA Reports Q1 2024 Preliminary Results: Earnings Dip, Forecast Intact

Drägerwerk AG & Co. KGaA disclosed its preliminary results for Q1 2024, revealing a slight decrease in net sales and earnings compared to a robust quarter in the previous year. Despite this dip, the company has maintained its annual forecast. Q1 2024 saw net sales fall by 3.3 percent to approximately EUR 736 million from EUR 761.1 million in Q1 2023. This decline was particularly noted after an exceptional previous year fueled by increased demand and enhanced delivery capabilities.

The safety division of Drägerwerk experienced growth, with sales increasing by 9.3 percent, while the medical division faced a 11.2 percent decline, primarily due to lack of the prior year's unique factors. The company's overall gross margin increased slightly to 45.3 percent, up from 45 percent. Earnings before interest and taxes (EBIT) were noted at EUR 15 million, down from EUR 29.1 million in the comparable quarter last year, reflecting a decrease in EBIT margin from 3.8 percent to 2 percent.

Even with these challenges, Dräger's overall order intake showed a marginal improvement, rising by 0.9 percent to EUR 811 million, with the safety division's orders up 5.5 percent. Conversely, the medical division's orders dropped by 2.5 percent. Affirming its outlook for the fiscal year, Dräger anticipates a net sales growth of between 1.0 and 5.0 percent and an EBIT margin ranging from 2.5 to 5.5 percent.