BERLIN (dpa-AFX) - German medical and safety technology provider Draegerwerk AG & Co. KGaA (DRWKF.PK) increased its guidance for fiscal year 2021. It is based on order entry exceeding expectations during the first months of the year and a good business development expected for the rest of the year.
The company now expects a currency-adjusted decrease in net sales of between 2 and 6 percent for fiscal year 2021. This would correspond to a nominal decrease in net sales of around 3 to 7 percent. Previously, the company expects currency-adjusted decrease in net sales of between 7 and 11 percent.
The company also raised annual EBIT margin outlook due to the higher net sales expectation, the associated scale effects and the expected product mix.
The company now projects annual EBIT margin to be between 8 percent and 11 percent compared to the previous expectation of 5 percent to 8 percent.
The company noted that the stronger business development in the current year is mainly due to the coronavirus pandemic. The demand trend is better than expected, as the need for products to treat patients suffering from COVID 19 is lasting longer than originally anticipated.
The company continues to expect pandemic-related demand to normalize further in the current year and does not anticipate comparable demand in the coming fiscal year. The company will publish its preliminary figures for the second quarter and the first half of 2021 in mid-July.
Copyright RTT News/dpa-AFX