Invacare report reveals profit boost for mobility and seating products in first quarter of 2023
The latest financial report by US medical device manufacturer Invacare for the first quarter of 2023 has revealed improved operating results driven by lower expenses and an expanded gross margin.
Demand for lifestyle and mobility and seating products remained resilient on a global basis for the quarter ended March 31, 2023, according to the report by Invacare Holdings Corporation.
In Europe, profitability improved over 90 per cent compared to the first quarter of 2022 driven by gross profit expansion.
On a consolidated basis, results were negatively impacted by the January 2023 bankruptcy filing in the US by its predecessor, Invacare Corporation, the report revealed, which primarily impacted revenues and profit in North America as the firm focused on restarting the supply chain to fulfill customer demand.
Notwithstanding the bankruptcy, the company stated that it had achieved improved operating results driven by favourable product mix, lower input costs and reduced expenses, reflecting the benefit of previous restructuring actions.
Geoff Purtill, president and chief executive officer, said: “Our focus is on driving operational excellence and delivering profitable long-term growth in our core lifestyle and mobility and seating product categories.
“This is a new beginning for the company and a great opportunity to redefine the business for the future and realize our long-term growth potential.
“Building on our May 5th emergence from bankruptcy, we continue to accelerate the execution of our transformation plan which has yielded positive results in Europe, and I am optimistic it will generate similar improvements in North America.”
The report revealed net sales of US$165.5 million, a decrease of 17.7 per cent. The gross margin was 26.5 per cent, an increase of 280 basis points, driven by favorable product mix and lower input costs.
Its operating loss improved by 37 per cent to US$10.4 million compared to a loss of US$16.6 million the previous year.
To further position the business for long-term success, the company has stated that it will continue to execute strategic actions which include product line rationalisation, footprint optimization, supply chain simplification, revisiting the IT infrastructure, and organization ‘right-sizing’.
Commenting on the company’s financial results, Kathy Leneghan, Senior Vice President and Chief Financial Officer stated: “We are beginning to see the benefit of the transformation actions previously implemented reflected in our financial results.
“As we progress through the year, we continue to be focused on improving our service levels to enhance the customer experience, and our efforts to return the company to long-term, sustainable growth.”
