LÜBECK (dpa-AFX) - After a significant increase in net sales in 2023, the medical and safety technology group Drägerwerk expects only moderate growth in the current year. In 2023, Drägerwerk benefited from catch-up effects as a result of improved delivery capability and a wave of demand for ventilators in China at the beginning of the year, the Group surprisingly announced in Lübeck on Monday evening. These two effects were absent in the current financial year. The share price turned positive in early Tuesday trading after losses at the start of trading. They recently rose by around two percent.

According to a trader, the preliminary figures for 2023 were surprisingly good, as was the announced dividend increase. However, the company only raised its annual targets in December. Meanwhile, the expert criticized the business outlook for 2024, saying that even if it could be considered conservative, the forecast for the operating profit margin was disappointing.

For the current year, Drägerwerk is targeting an increase in net sales adjusted for currency effects of 1.0 to 5.0 percent. The operating profit margin (EBIT margin) is expected to be 2.5 to 5.5 percent of net sales.

According to preliminary calculations, revenue in 2023 increased by 13.2% year-on-year adjusted for currency effects to just under EUR 3.4 billion. Both divisions - Medical Technology and Safety Technology - contributed to this growth. The operating profit margin improved to plus 4.9 percent. In 2022, it had amounted to minus 2.9 percent. Drägerwerk thus exceeded its own original expectations, it added. Drägerwerk had only raised its annual targets again in mid-December.

In 2022, the Lübeck-based company had still suffered greatly from supply chain problems and reported an operating loss of 88.6 million euros on sales of just under 3.05 billion euros. The company was also in the red at the bottom line that year.

Due to the significant increase in net sales and earnings, the SDax group intends to significantly increase its dividend and pay out around 30 percent of net income. Drägerwerk had paid shareholders a dividend of EUR 0.13 per ordinary share and EUR 0.19 per preference share for 2022. The final proposal will be made with the final business figures for 2023, it said.

The full annual report is to be published on March 7 /mne/niw/tih