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Hartmann increases sales in all business segments

09 Nov '11

4 min read

HARTMANN increases sales in all business segments: In the first nine months of 2011, the HARTMANN GROUP continued its growth despite the difficult conditions in the health markets. Global sales revenues increased by 5.0% to EUR 1,263.8 million compared to the previous year. Also in the third quarter of the fiscal year, the company was confronted with significant price pressures and lower reimbursement rates for medical products in the national health markets. Prices for raw materials, crude oil and transportation remained at a high level. Due to an unfavorable market environment EBIT declined by 1.6% to EUR 78.9 million after nine months. The consolidated net income decreased by 5.5% to EUR 50.8 million.

Strong growth in the Infection Management segment

In the Wound Management segment, sales revenues were EUR 342.1 million as at September 30, 2011, an increase of 3.7%. HARTMANN recorded growth in all major product categories for professional wound care. The consumer-focused range in pharmacies was also increasingly well received by customers.

In the Incontinence Management segment, HARTMANN recorded a sales increase of 2.2% to EUR 453.2 million as at the end of the third quarter of 2011. Two-piece systems, pads and fixation pants in particular contributed to the sales growth. MoliCare Mobile, the incontinence pants for mobile patients, was again the strongest growing product in this segment.

The Infection Management segment continued its double-digit growth in the course of fiscal year 2011. Sales revenues rose by 13.2% to EUR 279.2 million as at September 30, 2011. Major growth drivers were the product categories of surgical sets, disinfectants and gloves.

The share of the medical core segments in total sales was 85.0% as at September 30, 2011.

Other Group Activities recorded sales revenues of EUR 189.2 million in the first nine months of the fiscal year, an increase of 2.9% compared to the previous year. The CMC Group and the Kneipp Group contributed to this growth.

Unfavorable market environment affects results

Given the heavily indebted national economies, the HARTMANN GROUP continued to be confronted with increasing restrictions on reimbursement for medical products in the national health systems and continued high price pressure in the first three quarters of 2011. Despite the global economic slowdown, prices for raw materials and crude oil remained at a high level. The same applies to transportation costs for container and truck freight. However, the price increases HARTMANN systematically introduced in its sales markets have not yet fully compensated for the rise in costs. Due to these conditions, EBIT of the HARTMANN GROUP declined by 1.6% to EUR 78.9 million as at September 30, 2011 compared to the previous year. The consolidated net income decreased by 5.5% to EUR 50.8 million.

Equity ratio continued at high level

The equity ratio was 50.3% as at the end of the third quarter of 2011. Net debt of the HARTMANN GROUP as at September 30, 2011 was EUR 183.9 million, a decrease of EUR 37.9 million compared to the end of the second quarter.

Number of employees slightly increased

On September 30, 2011, the HARTMANN GROUP had 10,059 employees, an increase of 77 employees compared to the end of 2010. This change is mainly based on the expansion of manufacturing capacity in the KOB plant in Qingdao/China and of sales structures in the growing Russian market. In addition, the integration of the French cosmetics manufacturer Cattier into the Kneipp Group increased the number of employees. 61.5% of the employees were working in foreign subsidiaries at the end of the third quarter of 2011.

Outlook

Growth and profitability continue to remain the top priority of the HARTMANN GROUP in fiscal year 2011. With a product portfolio based on customer needs and added-value services the company is well positioned as an established branded medical device company to be the preferred partner for an increasing number of customers worldwide.

However, HARTMANN continues to expect volatile raw material and logistics costs still remaining at a high level, and strongly fluctuating exchange rates. The continued debate regarding appropriate measures to solve the debt crisis in various national economies makes itadd