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Hartmann Q1 net income grows 10.6% to €21.6mn

02 May '14

4 min read

The HARTMANN GROUP continued its profitable growth in the first quarter of fiscal year 2014, despite the strong price pressure from customers and the depreciation of many currencies against the euro. The Heidenheim-based medical device manufacturer increased its worldwide sales revenues by 2.9% to EUR 450.2 million, adjusted for exchange-rate and acquisition effects. EBIT rose by 10.5% to 33.3 million in the first quarter of 2014 compared to the previous year. The consolidated net income increased by 10.6% to EUR 21.6 million.

In the Wound Management segment, sales revenues increased by 3.2% to EUR 95.5 million in the first quarter of 2014. Organic growth was 4.5%. The growth mainly resulted from sales in hydroactive wound care products, postoperative dressings as well as procedure trays for outpatient care. Sales of the negative-pressure wound therapy system offered under the Vivano brand developed in an especially dynamic way.

In the Incontinence Management segment, sales revenues were EUR 152.8 million, remaining at about last year's level. Adjusted for exchange-rate and acquisition effects, the growth rate was 1.2%. MoliCare Mobile, the incontinence pants for mobile patients, and Menalind professional, the skin-care range for irritated, mature skin, delivered a good sales performance.

Sales in the Infection Management segment improved by 1.3% to EUR 108.9 million in the first three months of the fiscal year. Organic growth was 2.6%. Especially in the product categories surgical sets, hand or surface disinfectants as well as disposable surgical instruments, HARTMANN achieved good growth. The share of the medical core segments in total sales was 79.3% as at March 31, 2014.

Other Group Activities recorded sales revenues of EUR 93.0 million in the first quarter of 2014, an increase of 4.3% compared to the previous year. Adjusted for exchange-rate and acquisition effects, sales improved by 5.0%. The CMC and Kneipp Groups contributed to this growth. The business of the KOB Group, primarily included in Other Group Activities beginning this fiscal year, delivered good sales growth.

EBIT and consolidated net income improved

Sales growth had a positive effect on the performance of the HARTMANN GROUP in the first quarter of 2014. Burdening factors included the expansion of sales activities, particularly in the Wound Management segment, and the growing price pressure from customers under the cost saving efforts in the health systems. Despite some softening, prices for raw materials and traded goods remained at a high level.