Paul Hartmann : Financial year 2021 characterized by coronavirus and progress in the Transformation Program
March 22, 2022 at 10:00 am
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Heidenheim, March 22, 2022. For the HARTMANN GROUP, the 2021 financial year was again dominated by the strong impact of the coronavirus and progress with the Transformation Program. The expected decline in key financial figures is mainly due to the pandemic. The pandemic-related extraordinary demand for disinfectants and personal protective equipment subsided as our customers meanwhile had large supplies on stock. There continued to be a reduced market with low bed occupancy rates in medical facilities and only a gradual increase in the number of surgeries and visits to doctors and pharmacies. Significantly higher material and transport costs also had an impact. By contrast, the strategic Transformation Program had a very positive impact on Group earnings.
Key financial figures for 2021
HARTMANN's Group sales in 2021 were EUR 2,301.8 million. This corresponds to an expected moderate organic decline in sales of -5.2% compared to the previous year. The key earnings figure of adjusted EBITDA decreased by -17.7% to EUR 240.6 million (previous year: EUR 292.4 million) and was therefore within the forecast range as published. HARTMANN adheres to the principle of a dividend policy focused on continuity. The proposed dividend is unchanged from the previous year at EUR 8.00 per share.
Infection Management: Demand has declined due to customers with large supplies on stock.
Incontinence Management: The persistence of low bed occupancy rates in hospitals and nursing homes resulted in subdued demand.
Wound Care1: Despite growth, the wound care market remains significantly below the market development prior to the coronavirus pandemic.
Complementary Group Divisions1: KNEIPP continued to successfully serve the trend towards greater health awareness; KOB recorded growth in compression bandages.
Sales (organic sales growth) 2021
Group
EUR 2,301.8 million (-5.2 %)
Infection Management
EUR 681.3 million (-19.3 %)
Incontinence Management
EUR 681.1 million (-1.8 %)
Wound Care1
EUR 492.4 million (+9.7 %)
Complementary Group Divisions1
EUR 447.0 million (+0.8 %)
1The names of these business segments were altered in 2021.
Successful Transformation Program
HARTMANN launched its Transformation Program in 2019 to sustainably improve the Company's competitiveness. As the pandemic intensifies the challenges faced by healthcare markets, the consistent implementation of the program is essential for the Company.
Britta Fünfstück, CEO of the HARTMANN GROUP: "We have once again succeeded in meeting the challenges of the pandemic while achieving the planned progress milestones of our Transformation Program."
HARTMANN brought important product innovations to market launch, including: further silicone-based wound dressings (e.g. Cosmopor® Silicone), an artificial intelligence-based system for wound analysis (Vintens®), a new sterile component set for infection prevention (MediSet®) as well as highly effective products for surface disinfection (e.g. Bacillol® 30 Sensitive).
HARTMANN continued its digitalization and the strengthening of its offerings for the outpatient market. Since January 2021, the leading German online platform for nursing care pflege.de has been part of the Company's portfolio.
HARTMANN made significant investments in the expansion and modernization of production facilities and infrastructure, including: machinery in the field of advanced wound care in France, a new high-performance production line for incontinence products in Spain and capacity expansions for the Disinfection division in Germany. In total, investments in tangible assets amounted to around EUR 154 million last year, significantly more than in previous years.
For the 2022 financial year, HARTMANN continues to expect a moderate organic decline in sales and a decline in adjusted EBITDA in the range of EUR 190 to 230 million. Due to the ongoing pandemic, there is a high degree of uncertainty in this forecast. In addition, possible effects of the Russia-Ukraine conflict are not yet quantifiable and therefore not included in the outlook.
Russia-Ukraine conflict
HARTMANN condemns any aggression that endangers people's lives and health. HARTMANN is offering aid through cash and non-cash donations to Ukraine as well as neighboring countries who are providing shelter for the large number of refugees. In addition, the Company is supporting the family members of Ukrainians employed by the Company who have fled.
The annual report and financial statements for financial year 2021 can be found at hartmann.de/ir.
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About the HARTMANN GROUP
The HARTMANN GROUP is one of the leading European providers of professional medical and care products and associated services. Every day, healthcare professionals and patients rely on HARTMANN brands in the segments of Incontinence Management (e.g. MoliCare®), Wound Care (e.g. Zetuvit®) and Infection Management (e. g. Sterillium®). This is expressed in our brand promise of "Helps. Cares. Protects." In 2021, the HARTMANN GROUP reported Group sales of EUR 2.3 billion. Founded in 1818, the company sells its products and solutions in 130 countries around the world. For the future, the HARTMANN GROUP is currently implementing its strategic Transformation Program with its high-performance, customer-oriented and passionate team.
For the latest information on HARTMANN, follow @HARTMANN_GROUP on Twitter.
To learn more about the HARTMANN GROUP, visit: https://hartmann.info/.
Paul Hartmann AG published this content on 22 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2022 09:59:04 UTC.
Paul Hartmann AG is a Germany-based holding company that is principally engaged in the field of medical and healthcare products. The Company operates through four segments, namely Wound Management, Incontinence Management, Infection Management and Other Group Activities. The Wound Management segment comprises wound dressings, as well as products for compression treatment, immobilization, First Aid and diagnostic devices. The Incontinence Management segment includes absorbent products worn close to the body for incontinence hygiene, such as under pads for patients as well as patient hygiene products and medical skin care. The Infection Management segment covers a range of custom procedure trays, surgical draping systems, surgical clothing, and surgical and examination gloves as well as the disinfection assortment. The Other Group Activities includes activities in cotton-wool products, feminine hygiene, baby care, medical consumer goods and pharmaceutical products, among others.
PAUL HARTMANN AG 
