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.

Overall, the HARTMANN GROUP improved its results

EBIT increased by 10.5% to EUR 33.3 million as at March 31, 2014 compared to the previous year. Consolidated net income improved by10.6% to EUR 21.6 million.

 

Continued high equity ratio 

The equity ratio was 54.8% at the end of the first quarter of 2014. At March 31, 2014, net debt of the HARTMANN GROUP was EUR 45.8 million compared to EUR 93.7 million in the previous year.

 

Number of employees increased 

On March 31, 2014, the HARTMANN GROUP had 10,395 employees, an increase of 138 employees compared to the end of 2013. At the end of the first quarter of 2014, 42% of the employees were working in Germany, 58% in foreign operations.

 

Outlook

Also in the future, the HARTMANN GROUP expects average annual global growth similar to previous years in the relevant medical product categories. However, changes in the health systems, consolidation processes on the customer and provider side and the associated pressure for innovation as well as price pressures will continue to increase.

 

HARTMANN has a solid foundation with a wide range of opportunities for future growth. For example, with its HydroTherapy concept for the treatment of chronic and slow-healing wounds with just two products designed for each other, HARTMANN has chosen an innovative approach in the growing hydroactive wound care market. In addition to inpatient care, home delivery is gaining increasing importance for absorbent incontinence products in more and more countries. Therefore HARTMANN will expand its role internationally in the home delivery sector.

 

In the Infection Management segment, HARTMANN has positioned itself with a very high scientific and medical competence as a recognized specialist in the field of infection prevention. Other Group Activities are a major part of the portfolio for continued profitable growth within rapidly changing market structures.

 

Andreas Joehle, CEO of the HARTMANN GROUP: “Investments in products, markets and internal processes in past years will gradually have a positive effect on sales and earnings. Overall, we see ourselves well positioned and expect moderate sales growth and a moderate increase in EBIT in 2014.”