Medical core business and acquisitions drive the success
Strong growth in the medical core business continues
The HARTMANN GROUP increased its sales revenues by 12.5% to EUR 1,152 million in the first nine months of 2009, continuing the dynamic growth of the previous year. The acquisitions of BODE Chemie/Germany and Whitestone/USA contributed 9.0 percentage points to sales growth. This was contrasted by negative currency effects of 1.4 percentage points. Organic growth was 4.9%.
In the three medical core segments Wound Management, Incontinence Management and Infection Management, HARTMANN recorded sales growth of 15.2% and an increase in sales volume of 13.4%. “After nine months, the acquisition of BODE Chemie can be considered a great success. The growing need for hygiene has created strong demand for disinfectants”, said CEO Dr. Rinaldo Riguzzi. “Whitestone, manufacturer of absorbent incontinence products, was also successfully integrated into our restructured U.S. subsidiary. We are now targeting the attractive elderly and nursing home market in the USA to continually introduce new concepts for providing incontinence products to elderly people, using European know-how.” The main growth impetus came again from the Infection Management segment. Sales revenues rose 57.7% to EUR 247.0 million in the first nine months of 2009. In addition to the sound organic growth of 15.1%, the increase was due to the successful integration of the BODE Group into this business segment. In the Wound Management segment, sales revenues increased 0.4% to EUR 311.3 million. Further growth was constrained by unfavorable exchange rate effects in the Eastern Europe markets. In the Incontinence Management segment, sales revenues rose 9.8% to EUR 417.9 million in the first nine months of 2009. In addition to organic growth of 6.5%, sales revenues of Whitestone in the USA contributed to the increase.
The share of the medical core segments in total sales increased 2.0 percentage points to 84.7% as at September 30, 2009.
In Other Group Activities, sales revenues decreased 0.7% to EUR 176.0 million. This development is mainly due to the elimination of low-margin sales of CMC Consumer Medical Care GmbH.
Profitability of sales further improved
Due to the dynamic organic and inorganic sales growth of the HARTMANN GROUP in the first nine months of 2009, operating EBIT improved by 28.3% to EUR 75.4 million. Operating consolidated net income increased more than average by 35.3% to EUR 46.5 million compared to the previous year. On balance, extraordinary effects had only a minor influence on consolidated net income and EBIT as at September 30, 2009,. Provisions for restructuring of manufacturing sites for incontinence products and depreciation under IFRS from the acquisitions of Bode Chemie and Whitestone related to the purchase price had a negative impact. Accounting profit on sale of real estate at the Recklinghausen location in Germany had a positive effect. Including extraordinary effects, EBIT rose 28.0% to EUR 75.2 million and consolidated net income increased 34.8% to EUR 46.3 million.
Equity ratio remains high
The equity ratio was 45.7% as at September 30, 2009 compared to 43.9% as at December 31, 2008
Number of employees slightly decreased
On September 30, 2009, the HARTMANN GROUP had 9,526 employees, a decrease of 56 employees compared to the end of 2008.
The change is mainly based on the optimization of our manufacturing structure in Europe. 60.6% of the employees were working in foreign subsidiaries at the end of the third quarter of 2009.
Outlook
Despite the global economic downturn, HARTMANN is operating in a favorable environment. Profitability will improve further in the current fiscal year. Positive one-time effects also support this development: lower raw material prices compared to last year and additional sales from the new flu. However, both effects are expected to decrease in 2010. Moreover, the company assumes that the financial restrictions in the national health care systems will increase, with rising cost pressures. Nevertheless, HARTMANN is cautiously optimistic about the performance in the coming year.
