Siemens Healthineers has reported a net income of €431m ($462m) in the second quarter (Q2) of fiscal year 2024 (FY24), an increase of 297% from €108m reported in Q2 FY2023.
The company's basic earnings per share (EPS) also rose sharply to €0.38 from €0.09 in the same period last year.
Revenue for the quarter ending 31 March 2024 saw a modest rise to approximately €5.4bn, up 1.7% from €5.3bn in Q2 FY23. On a comparable basis, the company’s revenue growth was 3.0% against Q2 FY23.
Geographically, the company highlighted that Europe, Middle East and Africa (EMEA) region exhibited strong comparable revenue growth, while the Americas and Asia Pacific Japan regions saw strong and moderate increases, respectively.
Revenue in China declined due to delayed customer orders and a high comparison base from the previous year, the company noted.
Adjusted basic EPS improved to €0.55 in Q2 FY24, exceeding the previous year's €0.49.
Earnings before interest and taxes (EBIT) also increased significantly to €589m in Q2 FY24 from €189m in Q2 FY23.
Adjusted EBIT rose by 8% year-on-year to €822m in Q2 FY24 from €764m in last year’s Q2, resulting in an adjusted EBIT margin of 15.1%, higher than the 14.3% reported in the prior-year Q2.
The company attributed this growth to revenue increases and cost reductions from the transformation programme of the Diagnostics business, despite negative currency effects.
Siemens Healthineers reported a good equipment book-to-bill ratio of 1.08 in Q2 FY24.
However, free cash flow decreased to €120m from €517, primarily due to a rise in operating working capital.
Looking ahead to the full fiscal year 2024, the company maintains its expectation of comparable revenue growth to range between 4.5% and 6.5% over FY23.
Excluding revenue from rapid Covid-19 antigen tests, this corresponds to comparable revenue growth of between 5.0% and 7.0%.
The expectation for adjusted basic EPS remains unchanged at between €2.10 and €2.30.
Siemens Healthineers CEO Bernd Montag said: “The Healthineers team has continued its successful growth trajectory, even relative to an excellent prior-year quarter. After an overall strong first half of the year, we are once again well on our way to achieving our targets for the financial year.”
