HARTMANN confirms positive earnings development in the 2023 financial year

19/03/2024
  • Sales revenues amount to EUR 2,353.3 million – organic sales growth of 2.3%
  • Adjusted EBITDA was EUR 203.4 million and thus EUR 12 million more than the previous year
  • Earnings contributions from the Transformation Program together with price adjustments more than compensate for additional material and energy costs
Heidenheim, 03/19/2024. The various commercial and geopolitical challenges during the reporting year had a significant impact on the business performance of the HARTMANN GROUP. HARTMANN continued to operate in a difficult market environment in 2023 with reduced demand persisting in the markets – partly due to a massive shortage of personnel in the European healthcare systems – along with high additional costs for materials and energy of approximately EUR 60 million, as well as an increase in personnel costs.

Transformation Program makes major positive contribution

The Company has consistently implemented its Transformation Program, which focuses on growth through innovation, improvement of the costs position and the targeting of attractive market segments. The measures from the Transformation Program implemented in 2023 made a significant contribution of more than EUR 50 million to adjusted EBITDA compared to previous year. Together with price adjustments, this more than compensated for the additional costs. Britta Fünfstück, CEO HARTMANN GROUP: “The growing contributions from the Transformation Program are strengthening the performance and resilience of our Company.”

In 2023, HARTMANN GROUP’s sales revenues amounted to EUR 2,353.3 million. Overall, the Company saw organic sales growth of 2.3% compared to 2022. Adjusted EBITDA amounted to EUR 203.4 million and thereby EUR 12 million more than in the previous year. HARTMANN thus confirms its preliminary earnings statement published at the end of January 2024. The adjusted EBITDA margin was 8.6%.

Growth, particularly in Wound Care and Incontinence Management

The Wound Care segment generated sales of EUR 586.4 million (Organic sales growth: 5.6%). The positive development was primarily due to growth in advanced wound care, particularly with silicone superabsorbent wound dressings.

In the Incontinence Management segment, HARTMANN generated sales of EUR 759.5 million in the reporting year (Organic sales growth: 6.2%). The ranges with particularly strong sales during the reporting year included incontinence pull ups and products for moderate/severe incontinence.

In the reporting year, the Infection Management segment recorded sales of EUR 515.1 million (Organic sales decline: 8.0%). The main reasons for the decline were a significant drop in market prices for examination gloves and a year-on-year fall in demand for hand disinfection products.

Sales revenue in the Complementary Group Divisions segment amounted to EUR 492.3 million in the reporting period (Organic sales growth: 4.4%). CMC and Kneipp reported a positive sales trend. Sales at KOB declined slightly due to one-off effects.

Cost improvements through greater efficiency

In line with the Transformation Program, the introduction of efficient production machines and logistics optimization measures played an important role in improving costs. When production starts at the new plant in Poland, important contributions can be expected in the future. Investments of over EUR 140 million are laying the foundation for growth and cost improvements in the coming years.

HARTMANN is adhering to its long-standing principle of a dividend policy based on continuity and is proposing a dividend of EUR 8.00 per share.

Outlook

For financial year 2024 HARTMANN GROUP expects adjusted EBITDA in a range of EUR 200 to 240 million and moderate organic sales growth.

The Annual Report and annual financial statements for the 2023 financial year can be found at www.corporate.hartmann.info/en/investor-relations.

About 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 2022, 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, customeroriented and passionate team.

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