GE HealthCare raised its profit forecasts for 2023 after recording better-than-expected financials in its Q2 earnings report.
The company raised its organic revenue growth to a 6% to 8% window from an original range of 5% to 7%.
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“With markets improving globally and strong execution in the first half of 2023, we have confidence in our ability to deliver on the full year. As a result, we’re raising our full year guidance range for organic revenue growth by one percentage point,” said Peter Arduini, GE HealthCare’s CEO and president in a conference call on Tuesday.
The 2023 adjustments make for a promising year ahead for the company after it spun off from General Electric (GE) in January to start trading as an independent entity.
GE HealthCare also recorded 9% organic revenue growth, with sales totalling $4.8bn – up from $4.4bn in 2022.
Arduini added: “We delivered strong performance with 9% year-over-year organic revenue growth. This was driven by strong demand for new product introductions (NPIs).”
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By GlobalData“We were also pleased to see global demand improve sequentially, delivering 6% orders growth in the second quarter, up from 3% in the first quarter.”
Increased need for productivity due to global labour constraints has led to a surge in demand for medical technology.
The company pointed to inflation and investment for a small dip in its adjusted EBIT margin, down to 14.8% from 16% last year.
In January, GE HealthCare acquired IMACTIS – a French medtech with computer tomography (CT) navigation system technology. A month later in February, the company also snapped up artificial intelligence ultrasound guidance technology company Caption Health. The financial details of both deals were not disclosed.
Peter Arduini was also keen to point to the company’s fruitful position in the Alzheimer’s disease landscape. In the call, he explained how with new therapies coming to the forefront in the space, further requirements for imaging will create market opportunities for GE HealthCare in upfront diagnosis, safety monitoring and follow-up.
“Whilst it is still early in the Alzheimer’s therapy journey, we remain very optimistic about the benefit for patients and the growth opportunities this will generate for GE HealthCare as a partner to providers,” Arduini said.
