HARTMANN braves the economic crisis
2009-05-06 Operating consolidated net income improved disproportionately: The HARTMANN GROUP continued its strong performance in the first quarter of 2009 despite turbulent times. With sales growth of 12.5% compared to the same period last year the company achieved strong results. The two significant acquisitions, Bode Chemie/Germany and Whitestone/USA, have already made a positive contribution. HARTMANN improved its operating consolidated net income by 29.3% to EUR 14.9 million compared to the first quarter of 2008, thus further increasing profitability of sales.
Strong growth in the core segments
The HARTMANN GROUP achieved global sales revenues of EUR 376.8 million in the first quarter of 2009. This is an increase of 12.5% compared to the previous year. Changes in the scope of consolidation, primarily the acquisitions of the Bode Group and Whitestone, contributed 8.6 percentage points to sales growth. The significant devaluation of several Eastern European currencies negatively impacted sales by 1.5 percentage points. Organic growth was 5.4%.
With sales growth of 14.9%, the three medical core segments particularly contributed to the pleasing overall growth. Sales volume rose 14.0%.
Significant impetus for growth came from the Infection Management segment, which had been expanded in substance with the integration of Bode Chemie at the turn of the year 2008/2009 and which emerged from the previous Operating Theater Management segment. Sales revenues rose 52.0% to EUR 78.7 million. Organic growth was 14.0%.
In the Wound Management segment, sales revenues were EUR 101.2 million as at March 31, 2009, an increase of 2.8%. Further growth was constrained by unfavorable exchange rate effects in Eastern Europe.
In the Incontinence Management segment, sales revenues rose 9.2% to EUR 137.3 million compared to the previous year. In addition to organic growth of 5.7%, the acquisition of Whitestone contributed to the increase.
The share of the medical core segments in total sales increased 1.8 percentage points to 84.2% as at March 31, 2009.
Other Group Activities recorded sales growth of 1.2% to EUR 59.6 million.
HARTMANN continues profitable growth
With pleasing organic and inorganic growth in the first quarter of 2009, the HARTMANN GROUP improved its operating EBIT disproportionately by 22.1% compared to the previous year. It amounted to EUR 24.6 million as at March 31, 2009. Operating consolidated net income increased by 29.3% to EUR 14.9 million.
In the first quarter of 2009, extraordinary effects influenced EBIT and consolidated net income. Provisions for restructuring of manufacturing sites for incontinence products had a negative impact. In addition, depreciation was made from the acquisition of Bode Chemie and Whitestone related to the purchase price. Including extraordinary effects, the EBIT rose 5.6% to EUR 21.3 million. Consolidated net income increased 9.2% to EUR 12.6 million.
Equity ratio remains high
The equity ratio was 44.2% as at March 31, 2009 compared to 43.9% as at December 31, 2008.
Number of employees slightly decreased
On March 31, 2009, the HARTMANN GROUP had 9,529 employees, a decrease of 53 employees compared to the end of 2008.
The change relates mainly to the optimization of our manufacturing structure in Europe.
At the end of the first quarter, 61.4 % of the employees were working in foreign subsidiaries.
Outlook
Despite the global economic downturn, the HARTMANN GROUP is on a good path and expects continued above-market organic growth in the three medical segments for the current fiscal year. In Other Group Activities the company anticipates moderate sales growth, driven by further establishing Kneipp among consumers and by expanding the medical trade business of the NOGE Group.
The intensive implementation of the program HARTMANN 2011 will, according to CEO Dr. Rinaldo Riguzzi, help improve profitability and thus increase the operating consolidated net income. This assessment is based on the assumption that the economic crisis will have a limited impact on health markets and the changes in exchange rates will not have a material effect on results.
