GE HealthCare (GEHC) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

April 25, 2023 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Carolynne Borders - Chief IR Officer

Welcome to GE HealthCare’s first quarter of year 2023 earnings call. I’m joined by our President and CEO, Peter Arduini; and Vice President and CFO, Helmut Zodl. Our conference call remarks will include both GAAP and non GAAP financial results. Reconciliations between GAAP and non GAAP measures can be found in today's press release, and in the presentation slides available on our website. During this call, we'll make forward looking statements about our performance. These statements are based on how we see things today, as described in our SEC filings. Actual results may differ materially due to risks and uncertainties. And with that, I'll hand the call over to Peter.

Peter Arduini - President and CEO

Thank you, Carolynne. And good morning, everyone. I'm very pleased by the solid performance we delivered in our first quarter as an independent company. The momentum we demonstrated last year has continued and I'd like to thank our teams across the world for their continued dedication to executing on our precision care strategy. We delivered strong 12% year over year organic revenue growth with contributions coming from all of our segments driven by increased fulfilment, improved pricing and commercial execution.

We expanded adjusted EBIT, margin year over year through price and lean initiatives focused on cost and operational effectiveness. And we're on track to achieve our margin expansion goals for the year. We continue to monitor customer prioritization of capital purchases of our products, and we are cautiously optimistic given resilient and market demand. Supply chain challenges are improving, giving us line of sight throughout the remainder of the year. We continue to invest organically to deliver long term growth demonstrated by the 13% year over year increase in r&d in the first quarter in line with top line growth.

In addition, we acquired catching health and an actus with providers access to new technologies, markets and clinical capabilities. I also want to highlight today a declaration by our board of a three cent dividend for the first quarter of 2023. This reflects our confidence in the durability of our Cash Generation, a disciplined capital allocation strategy and our commitment to returning value to shareholders. Overall, the momentum we see in our business gives us confidence in our ability to deliver on our full year 2023 guidance. With that let me hand the call over to Hellmut to walk through our financials and business segment performance.