HARTMANN: negative impact on earnings continues in the first quarter of 2023 due to high additional material costs and reduced market demand

• Sales increase due to pricing measures despite reduced market demand
• High additional material costs impact earnings
• Transformation Program continues to make further contributions to earnings

Heidenheim, 28 April 2023. The first quarter of 2023 saw a continuation of the sales and earnings levels of the previous two quarters as the business continued to be characterized by high additional material costs and reduced market demand. In particular, demand for disinfection products remained below pre-pandemic levels. Inflation also led to reduced purchasing power, which strongly impacted the development of demand for branded consumer goods.

In the first three months of financial year 2023, the HARTMANN GROUP generated sales revenues of EUR 583.5 million. This corresponds to an organic sales increase of 3.4% compared to the prior-year period. Adjusted EBITDA amounted to EUR 49.9 million, a decrease of EUR -3.6 million compared to the first quarter of 2022.

The Incontinence Management segment increased its sales due to price adjustments and market share gains in hospitals and nursing homes. However, high additional material costs had a negative impact on earnings, among other things.

The Wound Care segment grew above all in the strategically important area of advanced wound care.

In the Infection Management segment, general demand for disinfection products declined in both the inpatient and outpatient sectors. High raw material prices could not be offset by price adjustments. Demand also decreased for examination gloves and protective clothing.

In the Group's Complementary Divisions segment, KOB and CMC were only partially able to compensate for increases in material, transport and energy costs by way of price adjustments. KNEIPP continued to face a shrinking market for bathing products and a shift away from branded products due to inflation.

Despite the difficult market conditions, HARTMANN continues to focus on its Transformation Program. The program has already contributed EUR 100 million to profitability from its start in 2019 up to the end of 2022. A further contribution of EUR 40 million is expected in 2023. These significantly positive earnings contributions will become visible when demand in the markets recovers and procurement markets normalize.

Based on current calculations, HARTMANN confirms its forecast for financial year 2023 with a decline in adjusted EBITDA of EUR 145 to 185 million and moderate organic sales growth.

Once again HARTMANN has lived up to its social responsibilities. As in the previous year following the outbreak of the Russia-Ukraine war, the Company offered immediate aide to the people affected by the earthquake disaster in Turkey and Syria with extensive donations in cash and in kind.

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®, Cosmopor®) and Infection Management (e. g. Sterillium®). This is expressed in our brand promise of “Helps. Cares. Protects.” HARTMANN generated sales of EUR 2.3 billion in the 2023 financial year. 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.

To learn more about the HARTMANN GROUP, visit www.corporate.hartmann.info.