INFORM | FIRST HALF YEAR OF 2021
Effects of the pandemic impact business performance The impact of the coronavirus pandemic on the HARTMANN GROUP's business development did not significantly diminish in the first six months of financial year 2021. Across all business segments, the Company achieved a sales revenue of EUR 1.153 billion in the first half of the year. The organic decline in sales was −5.0%. If exchange rate effects (−0.6%) and acqui- sitions / divestments (−0.9%) are included, there is a decline in total sales of −6.5%. The decline in sales and earnings compared with the previous quarters thus continued as forecast. On the one hand, the sales performance shows that the positive effects from the coronavirus pandemic diminished sharply in the first half of the year. In particular, demand for products from the Infection Management segment and personal protective equipment decreased significantly. On the other hand, the neg- ative effects continued to be felt. While budget and cost pres- sures in healthcare systems continued to increase, room occu- pancy rates in hospitals and nursing homes remained at a low level. A slight recovery was only discernible as a result of the recent modest increase in the volume of surgeries and the resulting rise in demand for modern wound care products. Increased expenses for freight and logistics as well as raw materials also had a negative impact on the performance of the business segments. Decline in demand for Infection Management and slow recovery in Wound Management In the Wound Management segment , HARTMANN generated sales revenues of EUR 234.4 million in the first six months of the year. Here, the rising number of surgeries and the renewed increase in the frequency of doctor and pharmacy visits indicate the beginning of a recovery from the negative impacts of the pandemic on the Wound Management segment. Compared to the first half of 2020, sales (organic) in the Wound Management segment improved by 10.8% as a result. Sales of HARTMANN products for modern wound care developed particularly positively. These include self-adhesive wound dress- ings and super absorbent wound dressings. Sales in the area of traditional gauze dressings such as fixation and compression bandages or plasters also made a positive contribution. Sales in the Incontinence Management segment amounted to EUR 336.4 million in the reporting period. This corresponds to an organic decline in sales of −3.9% compared to the prior-year pe- riod. This development is primarily attributable to the very slow BUSINESS DEVELOPMENT IN THE FIRST HALF YEAR OF 2021 rise in bed occupancy rates and the associated low demand for care products in hospitals and homes for the elderly. In the Incontinence Management segment, growth was driven by product solutions for the ambulatory care of incontinent, active people. These include products such as MoliCare® Elastic and MoliCare® Mobile. The Infection Management segment recorded sales of EUR 373.1 million in the reporting period. This corresponds to an organic decline in sales of −15.3% compared to the prior-year period. The decline is attributable on the one hand to lower de- mand for products from the Infection Management segment compared with the first half of 2020 and to customers' currently high inventories of hand disinfectant products. On the other hand, demand for personal protective equipment also declined significantly. Only the area of examination gloves continued to show a very positive development. However, this was unable to compensate for the developments of other product groups in the segment. In the Other Group Activities segment , sales totaled EUR 209.4 million. This corresponds to an organic decline in sales of −1.7% compared to the prior-year period. Here, too, the effects of the pandemic are still having a negative impact. For instance, sports clubs and organizers are still subject to significant restric- tions. One consequence is lower demand for sports injury prod- ucts such as bandages from KOB. At CMC Consumer Medical Care, reduced demand for cosmetic products led to declining sales. The KNEIPP Group, on the other hand, succeeded very well in catering to the trend towards greater health awareness in the first half of 2021. Total sales by business segment in EUR million and percent 234.4 | 20.3% 209.4 | 18.2% 336.4 | 29.2% 373.1 | 32.3% Wound Management Other Group Activities Incontinence Management Infection Management 4 Inform first half year 2021 | Business development
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