Do you remember the first weeks of the coronavirus pandemic? After the shock, there was a rally in prices. Today, things are different – even for the stock of the ventilation specialist Drägerwerk. Drägerwerk KGaA develops, produces and distributes devices and systems in the fields of medicine and safety technology since 1889. The company’s headquarters is located in Lübeck. In addition to production sites in Germany and Australia, China, Great Britain, India, the Netherlands, Sweden and the USA, Dräger is present with service and sales points in 190 countries.

Light at the end of the tunnel? After a disappointing business year 2022, the situation has improved significantly in the first half of the year. Drägerwerk has increased its sales by 17.7% and significantly improved profitability. The operating result (EBIT) was significantly in the black with 47.7 million €. On the sales side, Drägerwerk has benefited mainly from the high order backlog and the improvement in delivery capabilities.

On the results side, the significantly higher turnover and active price management have paid off. Medical technology increased its sales on a currency-adjusted basis by 19.3% to 910.7 million €. Growth drivers were all regions, especially Europe and Africa, Asia and Australia, where sales in the first quarter were significantly higher, especially due to the initially still significantly increased demand for ventilators in China.

In the Safety Technology segment, sales increased by 20% in currency-adjusted terms to 621.6 million €, driven by strong growth in all regions, especially in Europe, where sales increased by about one fifth, mainly due to the noticeable growth in Germany. The performance development was positively influenced by the high growth in sales and the improved gross margin. This increased due to the higher production and service utilization to 44%.

What we are still waiting for Drägerwerk reaffirmed the forecast for 2023 and expects a return to growth and profitability with a sales increase of 7 to 9%. So far, this is not enough for us. The share appears to be little promising at the current level. Those who appreciate Drägerwerk as a company will stay up to date with our regular analysis. If the comeback succeeds, new potential can arise.