Moderate organic growth in sales
For the purpose of transparent communication and in order to manage the growth in sales revenues, HARTMANN usesorganic sales growth as its central sales performance metric. Overall, the HARTMANN GROUP recorded moderate organic sales growth during the reporting year, which was in line with expectations at 2.3%.
In 2023, the consolidated sales of the HARTMANN GROUP across all business segments amounted to EUR 2,353.3 million. Compared to the previous year, this equates to an increase of 1.8%. Acquisitions/divestments had an impact of +0.2% on the HARTMANN GROUP’s overall growth while the exchange rate effects were -0.7%.
Transformation Program contributed to profitability
The HARTMANN GROUP is making major 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. The indicator shows EBIT before depreciation of tangible assets, amortization of intangible assets, impairments/reversals of impairment losses, and adjustments to 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 increased
Adjusted EBITDA amounted to EUR 203.4 million in 2023 (previous year: EUR 190.8 million). The indicator was therefore above the range of the Outlook published in the 2022 annual report and within the adjusted forecast range published in November 2023. Adjusted EBITDA return increased from 8.3% in 2022 to 8.6% in the reporting year. The main reason for this is the success of the Transformation Program with its focus on cost reductions, innovations and efficiency improvements.
During the 2023 financial year, HARTMANN made adjustments to its operational results. The Company incurred restructuring costs of EUR 24.0 million as a result of its focus on strategy. The main reasons for this were the relocation of production in the Wound Care segment and the modernization of production processes at Kneipp. Other adjustments of EUR 13.8 million were incurred, among other things, in light of digital initiatives for the future (SAP S/4HANA1) and pending litigation relating to circumstances from previous financial years.
The HARTMANN GROUP’s EBITDA for the 2023 financial year amounts to EUR 165.5 million and is thus equivalent to the previous year’s level of EUR 165.0 million. The financial result decreased to EUR -13.6 million (previous year: EUR -2.8 million). Income tax expense in the reporting year amounted to EUR 16.1 million, whereas in 2022 it was EUR 21.1 million. Compared to the previous year, consolidated net income declined by EUR 6.7 million to EUR 32.7 million.