Cost increases have a significant impact on business performance In Q1 2022, HARTMANN’s business performance was no longer significantly influenced by the coronavirus pandemic, but rather by the sharp rise in material, transportation, and energy costs worldwide. Across all business segments, the Company generated sales revenues of EUR 560.8 million in the first three months. This represents a moderate organic decline in sales of −6.1% compared to the same period of the previous year. Positive effects of the extraordinary economic conditions related to the pandemic failed to materialize in the first quarter and the markets gradually returned to normal, albeit at a reduced level compared to the growth trend prior to the coronavirus outbreak. At the same time, significant cost increases became the main factor influencing performance. Material, transportation, and energy costs have already increased significantly in 2021. The outbreak of the Russian-Ukrainian war further accelerated this trend. A key management task in the first quarter was to ensure the security of supply of our products and services for customers and patients. In addition to necessary price adjustments, the Company is continuing to systematically implement its Transformation Program, which also focuses on cost reductions. Market normalizes at reduced level In the Wound Care segment, HARTMANN generated sales of EUR 125.8 million in the first three months of the year. This figure corresponds to an organic sales increase of 12.3% compared to Q1 2021. Contributing to this development was increased demand for traditional wound management products, as well as successful sales developments in the area of modern wound care, including superabsorbent and silicone-coated products. In the Incontinence Management segment, sales in the first three months of the year amounted to EUR 171.7 million. This corresponds to an organic increase in sales of 1.3% compared to the figure for the same quarter of the previous year. The slow return to normal bed occupancy rates in nursing and care facilities is contributing to a gradual recovery to pre-pandemic levels. The segment’s growth drivers in the first quarter included not only sanitary pads and gender-specific pants, but also skin care products. At the same time, the segment was subject to the significantly negative effects of increased material, transportation, and energy costs. HARTMANN countered these by adjusting prices and introducing measures to increase efficiency and control costs. BUSINESS DEVELOPMENT IN THE FIRST QUARTER OF 2022 The Infection Management segment recorded sales of EUR 148.1 million in the period under review, representing an organic decline in sales of −28.0% compared to the first quarter of 2021. The decline is primarily attributable to the disappearance of positive contributions resulting from the extraordinary coronavirus-related boom in demand for masks and gloves. Growth in products such as drapes and sets for operating rooms was unable to offset this development. The Complementary Group Divisions segment generated sales of EUR 115.3 million. This corresponds to organic sales growth of 4.4% compared to the first quarter of 2021. At the CMC Group, the positive sales development with baby care and absorbent cotton products led in particular to an increase compared to the prior-year quarter. The KOB Group also achieved year-on-year sales growth with increases in all product categories, particularly compression bandages. At the KNEIPP Group, on the other hand, a currently declining market led to a noticeable drop in sales. Further decline in sales in Europe In the core sales market of Germany, there was an organic decline in sales of −13.0% in the first quarter as compared with the same period of the previous year. In the Europe, Middle East and Africa economic region (EMEA, excluding Germany), organic sales declined by −3.0%. In the Asia-Pacific region (APAC), HARTMANN recorded organic sales growth of 2.3%. In the Americas region, organic sales development remained stable. SHARE OF TOTAL SALES BY BUSINESS SEGMENT in EUR million and percent 125.8 | 22.4% 115.3 | 20.6% 171.7 | 30.6% 148.1 | 26.4% Wound Care Complementary Group Divisions Incontinence Management Infection Management 4 Inform first quarter 2022 | Business development
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