- Solid growth in core medical segments: nine-month sales rise by 3.2 percent to EUR 1,563.9 million.
- EBIT within expected range at EUR 90.3 million
- 2018 outlook for sales and EBIT confirmed
Heidenheim, Germany, November 11, 2018 – From January to September 2018, the HARTMANN GROUP, a leading international supplier of medical and hygiene products, increased group sales to EUR 1,563.9 million, despite difficult market conditions. This reflects a moderate increase of 3.2 percent compared to the previous year.
Earnings before interest and taxes (EBIT) were EUR 90.3 million (previous year: EUR 93.4 million), and thereby 3.3 percent below the figure from 2017. The slight decrease in EBIT is primarily due to general price pressure in the sales markets, continued high regulatory expenses, and strategic expenses for structural and growth investments. HARTMANN continues to boast a strong financial standing with a solid net financial position of EUR 66 million, and an equity ratio of more than 60 percent.
The third quarter of 2018 confirms HARTMANN’s competitive position. “We were able to compensate for the effects of price pressure and currency exchange effects, while maintaining our growth path,” says Andreas Joehle, Chairman of the Management Board of Paul Hartmann AG. “Despite expenses resulting from structural and growth projects, investment in the sales organizations, and the implementation of the Medical Device Regulation, EBIT was in line with our expectations.” Based on the results for the first nine months, HARTMANN confirms its outlook for the full-year 2018, which foresees moderate growth in sales and a moderate decline in EBIT. Joehle continues: “With its strategic investments, HARTMAN will achieve a competitive edge in the medium to long term and open up new market potential for sustained success in the future.”
Solid growth in the core medical segments
The Wound Management segment achieved sales of EUR 351.4 million, exceeding its results in the previous year by 3.9 percent. The growth is primarily attributable to the rising demand for super-absorbent and anti-bacterial wound dressings, the HydroTherapy treatment concept, and the Personal Healthcare segment.
The Incontinence Management segment grew its sales by 5.4 percent to EUR 516.8 million. The inclusion of sales achieved by LINDOR, whose integration is running in line with expectations, more than compensated for the negative effects of exchange rates. The Skintegrity Concept of holistic incontinence management and IAD (incontinence-associated dermatitis) prevention continued to increase their contributions to the business segment’s sales growth in the third quarter.
The Infection Management segment increased its sales by 2.0 percent to EUR 372.7 million. Thanks to moderate organic growth of 3.6 percent, the sales of surgical products and examination gloves exceeded the figure from the previous year despite exchange rate effects, as did the sales of disinfection management solutions. The Other Group Activities segment achieved sales of EUR 323million, which represented a slight increase of 0.6 percent as compared to the previous year.
The rise in group sales revenues was mainly based on positive developments in European countries outside the group’s domestic market. Europe as a whole (not including Germany) achieved an increase of 5.7 percent. In Germany, HARTMANN exceeded the previous year’s figure by 1.2 percent. Outside of Europe, moderate growth of 2.6 percent was overshadowed by negative exchange rate effects.
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About the HARTMANN GROUP
The HARTMANN GROUP is one of Europe’s leading providers of medical and hygiene products. Its core expertise is in wound treatment (e.g. wound dressings, negative-pressure wound therapy, conforming bandages, adhesive plasters), incontinence care (e.g. disposable incontinence briefs and pads, as well as incontinence-related skincare products) and infection prevention (e.g. complete surgical procedure sets, surgical clothing, disposable surgical instruments and dis-infectants). Its portfolio is rounded off with products for compression therapy, first aid, and cosmetics and care products. HARTMANN also provides innovative system solutions for professional target groups in the medical and healthcare sectors. With its headquarters in Heidenheim/Germany focusing on the European market, and with group companies worldwide, the Group is in close touch with global markets. In 2017, the HARTMANN GROUP achieved sales revenues of EUR 2.06 billion, with a workforce of 10,764 employees.
PAUL HARTMANN AG in Heiden¬heim/Germany forms the heart of the corporate group. It is one of Germany's oldest industrial companies, dating back to a textile factory founded by Ludwig von Hartmann in 1818. In 1873, his son Paul Hartmann began production of absorbent cotton wool, and later the Company evolved into the flagship of an ex¬panding worldwide dressing materials industry. The HARTMANN GROUP encompasses not only numerous sales companies abroad, but also companies such as BODE Chemie (Hamburg), Karl Otto Braun (Wolfstein), Sanimed (Ibben¬büren) and KNEIPP (Würzburg).
