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GE HealthCare expects 5%-7% organic revenue growth in 2023 on strong demand

Published 01/10/2023, 06:58 AM
Updated 01/10/2023, 07:25 AM
© Reuters. A completed GE digital anesthesia carestation stands as U.S. Vice President Mike Pence (not pictured) visits a GE Healthcare manufacturing facility during the global coronavirus disease (COVID-19) outbreak in Madison, Wisconsin, U.S. April 21, 2020. REUTE

(Reuters) -GE HealthCare Technologies Inc expects organic revenue growth for 2023 to be in the range of 5% to 7% on robust customer demand, the company said on Tuesday, even as inflation remains a concern.

"We are seeing the supply chain environment continue to improve with demand for our products and services growing in 2023," Chief Executive Officer Peter Arduini said in a statement.

The company - which supplies X-ray and ultrasound machines, among others - is also witnessing an increase in the fulfillment of older orders and improved pricing, which in turn are expected to boost the medical device maker's financials.

GE HealthCare expects its adjusted operating margin to be in the range of 15% to 15.5%, an expansion of 50-100 basis points from 2022.

The revenue growth forecast is in line with the company's medium-term target of mid-single-digit organic revenue increase that it gave last month.

© Reuters. A completed GE digital anesthesia carestation stands as U.S. Vice President Mike Pence (not pictured) visits a GE Healthcare manufacturing facility during the global coronavirus disease (COVID-19) outbreak in Madison, Wisconsin, U.S. April 21, 2020. REUTERS/Daniel Acker

The company made its Nasdaq debut last week after completing its spin-off from conglomerate General Electric (NYSE:GE) Co.

GE HealthCare had garnered about $18.3 billion in revenue last year, according to preliminary data, with a 7% organic growth.

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