Siemens Healthineers records growth, raises forecast

2022 02 04 20 36 5867 Siemens Rsna 2021 400

Siemens Healthineers appears to have been firing on all cylinders. In its latest quarterly report, the company has announced 19.7% growth in its diagnostics business after currency adjustment, while the vendor's medical imaging division reported 5.9% growth.

For the quarter (end-31 December), the company's Imaging business posted revenue of 2.525 billion euros, compared with revenues of 2.319 billion euros in the corresponding quarter of 2021. The division's adjusted earnings before interest and taxes (EBIT) came in at 505 million euros, compared with 542 million euros in the year-ago quarter.

The company said that it saw "significant" growth in its molecular imaging business, while its activities in CT and MRI saw "very strong" growth. On a regional basis, the Americas region grew "significantly," with strong growth in the Europe, Middle East, and Asia (EMEA) region. Revenue declined in the company's Asia and Australia region after it posted double-digital growth the year before.

Growth in the company's Diagnostics business was driven by increased demand for rapid COVID-19 antigen tests in Europe, and the approval of the company's rapid antigen tests in the U.S. The Diagnostics business posted revenue of 1.446 billion euros, up 19.7% after currency adjustment compared to revenues of 1.183 billion in the year-ago quarter.

The group's adjusted EBIT for the quarter was 244 million euros, compared with 137 million euros in the first quarter of fiscal 2021. The company said the Diagnostics division generated 329 million euros in sales from rapid COVID-19 antigen tests; excluding these products, growth in the division was 3.2%.

Prospects from the Diagnostics division are so bright that Siemens Healthineers said it was raising its financial outlook for the entire company for fiscal 2022. The company believes the division will generate 700 million euros in sales from rapid COVID-19 antigen tests, a figure that previously stood at 200 million euros. As a result, Siemens Healthineers expects overall revenue growth for the company of 3% to 5% for the year, compared with the previous estimate of 0% to 2%.

Finally, Siemens said that its Varian radiation oncology division generated 750 million euros in revenues and 117 million euros in adjusted EBIT. As Siemens Healthineers completed the Varian acquisition in April 2021, the company did not have a comparable financial quarter for the business.

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