Siemens Healthineers’ diagnostic dept saw revenue plummet 23.7 per cent in Q1 2023
China restrictions and testing decline hurt Siemens Healthineers earnings
Siemens Healthineers in the first quarter of its fiscal year 2023, posted revenues of 5.08 billion euros ($5.55 billion), representing a year-over-year drop of 4.5 per cent on a comparable basis. The diagnostics department saw quarterly revenues plummet 23.7 per cent.
China restrictions and testing decline hurt Siemens Healthineers earnings. Lockdown restrictions in China, supplier issues plaguing Varian, and a decline in COVID-19 testing gave Siemens Healthineers earnings a significant thrashing. The Erlangen, Germany-based company said these factors caused a 28 per cent drop in operating profit.
Comparable revenue decline of 4.5 per cent from the strong prior-year quarter due to markedly lower revenue from rapid COVID-19 antigen tests, as expected; excluding antigen tests, comparable revenue growth of 0.7 per cent. Imaging showed solid comparable revenue growth of 5.2 per cent and a clear improvement in adjusted EBIT margin of 100 basis points year-over-year to 20.9 per cent.
The diagnostics revenue was down 23.7 per cent on a comparable basis, mainly due to a markedly lower contribution from rapid COVID-19 antigen tests and the COVID-19 situation in China; the adjusted EBIT margin a slightly negative at -2.2 per cent due to transformation costs
Varian comparable revenue is down 4.5 per cent and an adjusted EBIT margin of 14.5 per cent, hampered by delays at a supplier that have since been resolved.
