HARTMANN continues on growth path
Heidenheim, August 15, 2012. The HARTMANN GROUP was confronted with an unfavorable market environment in the first half of 2012: The prices for raw materials and merchandise remained at a high level. The euro crisis affected business in the southern European countries. Budget cuts in the health systems increased price pressure from customers. Nevertheless the company managed to further increase its sales revenues in the first six months of the fiscal year by 3.4% to EUR 874.3 million.
HARTMANN grows despite difficult environment
In the Wound Management segment, sales revenues increased by 3.2% to EUR 234.5 million as at June 30, 2012. The growth mainly resulted from sales of modern wound care products and post-operative dressings.
In the Incontinence Management segment, HARTMANN increased sales by 4.9% to EUR 316.2 million compared to the previous year. MoliCare Mobile incontinence pants and the incontinence pads offered under the MoliForm brand name in particular recorded good growth.
In the Infection Management segment, HARTMANN benefited from increased sales of custom procedure trays and disinfectants, with disposable surgical instruments again showing the highest growth. Sales of examination gloves, however, declined as HARTMANN deliberately terminated unprofitable business in this product category. Total sales in the segment were EUR 190.1 million and therefore slightly below the prior year.
The share of the medical core segments in total sales was 84.7% as at June 30, 2012.
Other Group Activities recorded sales revenues of EUR 133.5 million in the first six months of the fiscal year. Kneipp and the CMC Group particularly contributed to the 7.0% increase compared to the previous year.
Results impacted by unfavorable factors
Also in the first half of 2012, the HARTMANN GROUP was confronted with continued higher prices for raw materials and merchandise, especially due to the euro weakening against the U.S. dollar. The euro crisis and the difficult economic situation in southern Europe, particularly in Greece, Italy, Portugal and Spain, affected the performance of the company’s subsidiaries there in a negative way. Furthermore, costs associated with the solution of problems that have occurred with some sterile products also impacted results. Building marketing and sales capacities in connection with the market launch of the new Vivano negative-pressure wound therapy system and further strengthening of the market position in Russia resulted in planned higher expenses.
In total, EBIT of the HARTMANN GROUP declined by 6.3% to EUR 50.1 million in the first six months of the current fiscal year. The consolidated net income decreased by 6.5% to EUR 32.8 million.
Equity ratio continued on high level
The equity ratio was 53.5% as at the end of the first half of 2012. Net debt of the HARTMANN GROUP as at June 30, 2012 was EUR 137.3 million.
Number of employees slightly increased
At the end of the first half of 2012, the HARTMANN GROUP had exactly 10,000 employees, an increase of 34 employees compared to the end of 2011. This change is mainly based on the expansion of manufacturing capacities in the Czech Republic and Australia, customer service functions in Germany as well as the acquisition of Funny Hygiene AG by the IVF HARTMANN GROUP. 61.3% of the employees were working in subsidiaries outside Germany on June 30, 2012.
Outlook
“We are convinced that HARTMANN will continue on the right path with its consistently implemented FOCUS strategy. With projects aligned with this strategy, the Management Board provided the basis for the next development stage of the company to achieve long-term profitable growth in the three medical core segments and in the segment Other Group Activities, and to further strengthen the market position of HARTMANN despite the increasingly difficult market environment”, says HARTMANN CEO Dr. Rinaldo Riguzzi. The projects deal, on the one hand, with innovative marketing concepts for products and services, and, on the other hand, serve to improve productivity across the value chain.
For the current year, the HARTMANN GROUP sees itself well positioned even under more difficult market conditions to successfully continue its growth strategy. Continued high raw material prices, the weak euro and the euro crisis in the southern countries of the Union impact the performance. The Management Board has therefore decided to launch the 2012 Stabilization of Results program. Corporate functions and subsidiaries have been asked to define short-term measures for additional earnings contributions.
Dr. Rinaldo Riguzzi: “For the fiscal year 2012, we anticipate slight growth in sales revenues across the four business segments. In view of the difficult environment and due to further burdens associated with the solution of problems with some sterile products, we expect consolidated net income for 2012 somewhat below last year's level.”
