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August 2, 2021updated 02 Nov 2021 6:07am

Siemens reports robust revenue growth in Q3 2021

With an updated outlook for the year, Siemens anticipates comparable revenue growth of more than 35% in the Diagnostics segment.

Siemens Healthineers has reported a 38.9% rise in revenue on a comparable basis to $5.93bn (€5bn) in the third quarter (Q3) of the fiscal year (FY) 2021, compared to $3.92bn (€3.31bn) in the same quarter last year.

For the quarter ended 30 June 2021, adjusted EBIT rose 103% to $1.12bn (€945m) as against $552m (€465m) in Q2 FY2020. This indicates a robust adjusted EBIT margin of 18.8%, induced by development in the Diagnostics segment.

Net income in the quarter increased 46% to $469m (€395m) from $322m (€271m) in Q3 of FY2020.

Siemens recorded an 84% growth in the adjusted basic earnings per share to $0.66 (€0.56) in Q3 of this FY compared to $0.37 (€0.31) in the prior-year quarter.

Furthermore, the equipment book-to-bill ratio, or the ratio of new orders to revenue, stood at 1.18 in Q3 of this year.

During the quarter, free cash flow was $1.01m (€852m), representing a 154% increase, versus $399m (€336m) in Q3 of FY2020.

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Total adjusted revenue in the imaging segment for Q3 FY2021 stood at $2.81bn (€2.37bn) as against $2.5bn (€2.11bn) last year, indicating a rise of 17% on a comparable basis.

This growth was challenged by the Covid-19 situation, Siemens noted, adding that all imaging modalities grew at a double-digit rate.

In Q3 of this year, Diagnostics segment revenue rose 103.4% on a comparable basis to $2.03bn (€1.72bn) from $1.03bn (€869m) in the last year quarter.

Rapid Covid-19 antigen tests, which saw increased demand, generated total revenue of nearly $711m (€600m) in this quarter.

Revenue in the Advanced Therapies segment rose by 12% on a comparable basis to $471m (€397m) in Q3 of FY2021.

In addition, the Varian segment generated revenue of $701m (€591m) between 15 April and 30 June 2021 with an adjusted EBIT of $116m (€98m). This translates into a robust adjusted EBIT margin of 16.6%.

In April, Siemens concluded the acquisition of Varian Medical Systems in an all-cash deal valued at $16.4bn.

Siemens Healthineers CEO Bernd Montag said: “The Siemens Healthineers team, strengthened by our new colleagues from Varian since April, again delivered an excellent performance in the third quarter.

“With significant growth in revenue, earnings and cash flow, the strong business momentum from the previous quarters continued.”

With robust revenue development in Q3, Siemens has updated the outlook for FY2021.

The company anticipates comparable revenue growth between 17% and 19% from the earlier 14% to 17%.

Siemens expects comparable revenue growth of more than 35% in the Diagnostics segment in FY2021 assuming that the rapid Covid-19 antigen tests will generate revenue of approximately $1.18bn (€1bn).

Last month, the US Food and Drug Administration cleared Siemens’ MAGNETOM Free.Max, a High-V magnetic resonance scanner.

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