During the reporting year, the global pandemic again had a significant impact on the business performance of the HARTMANN GROUP. As a leading provider of system solutions for the medical and healthcare sectors, HARTMANN is using its Transformation Program to address the challenges and opportunities in the healthcare market.
The earnings position was impacted by the end of the coronarelated special economic circumstances in disinfectants and personal protective equipment. What remains is a market reduced by the pandemic with continued low bed occupancy rates at medical facilities and only a gradual increase in elective surgeries, doctors’ appointments and pharmacy visits. Added to that are significant increases in material and transport costs. The strategic Transformation Program, on the other hand, has been shown to have a positive impact on Group results.
In order to manage the growth in sales revenues and for the purpose of transparent communication, HARTMANN uses organic sales growth as its central sales performance metric. Overall, the HARTMANN GROUP recorded a moderate organic decline in sales, of -5.2% during the reporting year. This is consistent with expectations for 2021.
Including all business segments, the HARTMANN GROUP reported Group sales of EUR 2,301.8 million in 2021. Compared with the previous year, this equates to a moderate decline of -5.4%. Here, acquisitions/divestments, as well as the exchange rate effect, in each case at -0.1%, had a slightly negative impact on the HARTMANN GROUP’s overall growth.
The HARTMANN GROUP is making significant investments as part of the Transformation Program launched in 2019. In this context, adjusted EBITDA has been the key metric for the HARTMANN GROUP’s earnings performance since 2020. This valuation metric shows EBIT before depreciation of tangible assets, amortization of intangible assets, impairments/recoveries, and adjustments to operating results, and hence reflects operating performance. The adjustments to the results cover restructuring costs, profits or losses from divestments and acquisition-related spending, as well as other adjustments. Adjusted EBITDA in 2021 amounted to EUR 240.6 million compared with EUR 292.4 million the previous year, and was therefore within the range anticipated in the Outlook published in the 2020 Annual Report. The adjusted EBITDA return fell from 12.0% in 2020 to 10.5% in the reporting year.
During the 2021 financial year, HARTMANN made adjustments to its operating results. Restructuring costs of EUR 12 million were incurred as part of the focus on strategy, largely through the relocation of the wound treatment production facility to Poland. These costs were set against revenues under other adjustments of EUR 4.3 million, which largely arose due to additional sales connected with the pandemic. This meant the HARTMANN GROUP’s EBITDA stood at EUR 232.9 million. The HARTMANN GROUP’s financial result improved from EUR -3.4 million in 2020 to EUR -0.2 million in 2021. Income tax liabilities during the reporting period came to EUR 38.1 million, whereas in 2020 they had been EUR 46.9 million. The tax ratio fell by about 1.1% compared with the previous year. Consolidated net income fell by EUR 15.8 million from the previous year to EUR 97.1 million.
|in EUR thousand||2020||2021||Change compared to prior year in %|
|Sales revenues||2,433,036||2,301,769||– 5.4|
|Of which outside Germany in %||65.0||66.2||1.2 *|
|Consolidated net income||112,940||97,098||– 14.0|
|Net return on sales in % ||4.6||4.2||– 0,4 *|
|Cost of materials||1,063,802||1,012,946||– 4.8|
|Adjusted EBITDA||292,427 ||240,558||– 17.7|
|Return on adjusted EBITDA in %||12.0||10.5||– 1.5 *|
|Depreciation/amortization on tangible and intangible assets||145,646 ||97,506||– 33.1|
|Return on EBIT in %||6.7||5.9||– 0.8 *|
|Free-Cash-Flow||203,215||– 46,340||– 122.8|
|Balance sheet total||1,730,516||1,825,047||5.5|
|Investments in tangible and intangible assets 1)||134,210||154,177||14.9|
|Current assets||996,455||989,480||– 0.7|
|Equity capital and reserves||973,330 ||1,092,995||12.3|
|Equity/asset ratio in %||56.2||59.9||3.7 *|
|Return on equity in %||11.6||8.9||– 2.7 *|
|Net Financial Status||186,585||80,557||– 56.8|
|Employees as at Dec. 31 2)||10,625||10,628||0.03|
* Change in percentage points
1) Excluding investments from acquisitions such as goodwill
2) Excluding staff on parental leave and PAUL HARTMANN AG Management Board members