PAUL HARTMANN AG INFORM
INFORMATION FOR OUR SHAREHOLDERS FOR THE THIRD QUARTER OF 2022
2 Inform third quarter 2022 | Key performance and the HARTMANN share
KEY PERFORMANCE
KEY PERFORMANCE INDICATORS OF THE HARTMANN GROUP AS OF SEPTEMBER 30
in EUR million, rounding differences not balanced out
Sales revenues
of which foreign share in %
Organic sales growth in %
Adjusted EBITDA
Return on adjusted EBITDA in %
Equity ratio in %
Net financial position
Employees
Market capitalization
Change over previous year | |||
2021 | 2022 | absolutely | in % |
1,704.9 | 1,710.2 | 5.3 | 0.3 |
66.4 | 68.6 | ||
−5.6 | −1.0 | ||
192.0 | 139.0 | −53.0 | −27.6 |
11.3 | 8.1 | ||
58.6 | 59.7 | 1.1%-Pt. | |
50.0 | −91.1 | −141.1 | −282.2 |
10,652 | 10,468 | ||
1,308 | 804 |
THE HARTMANN SHARE
MONTHLY CLOSING PRICES OF THE HARTMANN SHARE COMPARED TO EURO STOXX 50
September 30, 2021 (= 100 percent) to September 30, 2022 in percent
110
100
90
80
70
60
PAUL HARTMANN AG (Frankfurt) EURO STOXX 50
September 30, 2021
EUR 366.00
September 30, 2022 | ||||||||||||||||||||||||
EUR 225.00 | ||||||||||||||||||||||||
Oct. | Nov. | Dec. | Jan. | Feb. | March | April | May | June | July | Aug. | Sept. | |||||||||||||
2021 | 2022 |
BASIC INFORMATION ON THE HARTMANN SHARE
PERFORMANCE OF THE HARTMANN SHARE
WKN
ISIN
Exchange
Segment
Type of share
Capital stock
Number of shares
747404
DE0007474041
Frankfurt Stock Exchange
Open Market
Registered shares held in collective custody EUR 91.3 million
3,572,424 units, of which 20,682 Stück units are held as own shares
The closing price of the HARTMANN share on the Frankfurt Stock Exchange at the end of September 2022 was EUR 225 per share, EUR 112 lower than the year-end price for 2021 (EUR 337).
A multi-year share chart and a performance calculator to determine the performance of your investment can be found on our website: www.hartmann.de/hartmannshare
Title: Risk Prevention: Division strengthens the hospital business
Financial calendar
March 21, 2023 Publication of the annual financial statements 2022
April 28, 2023
109th Annual
General Meeting
HARTMANN GROUP sales revenues from January to September 2022 amounted to EUR 1,710.2 million. The organic decline in sales amounted to −1.0% compared to the same period of the previous year. Adjusted EBITDA was EUR 139.0 million, a decrease of EUR −53.0 million compared to the same period in 2021, and the adjusted EBITDA margin was 8.1%.
The first nine months of 2022 were characterized by many challenges for HARTMANN. There were further significant increases in material, transportation and energy costs, as well as negative currency effects, but there was also a clear impact from further destabilized supply chains and energy supply risks. We actively addressed this situation and mitigated negative effects through further successful price negotiations, additional measures to reduce costs and increase efficiency, and the consistent implementation of our Transformation Program.
Due to massive deterioration of the market situation, HARTMANN is adjusting its earnings forecast for the current fiscal year 2022. The Company expects a reduced adjusted EBITDA of EUR 180 to 220 million (previously: EUR 190 to 230 million) and continues to assume a moderate organic decline in sales.
In the coming fiscal year, the economic challenges will be even greater - not least due to the fact that favorable purchasing contracts are set to expire at the end of the year and the rising costs will be fully reflected starting from 2023. We will nevertheless continue to work unabated on sustainably strengthening our Company and systematically implementing our Transformation Program, as well as investing in production facilities, infrastructure and product innovations.
In addition to detailed information on the key financial figures, we will report in the newly redesigned INFORM on additional topics that move us at HARTMANN. The topics cover securing energy supplies, new initiatives from the divisions and our junior staff.
Warm regards,
Britta Fünfstück
4 Inform third quarter 2022 | Business development
BUSINESS DEVELOPMENT IN THE THIRD QUARTER OF 2022
The tense economic and geopolitical situation continues to affect the entire healthcare market. High costs of material, transportation and energy are leading to rising inflation rates in European economies. Additional challenges include the further destabilization of global supply chains and energy supply risks.
From January to September 2022, HARTMANN GROUP sales revenues amounted to EUR 1,710.2 million (January to Septem- ber 2021: EUR 1,704.9 million). The improvement in sales was largely due to necessary price adjustments to at least partially compensate for the sharp rise in material costs, especially for pulp and packaging materials. In this respect, there was an organic decline of −1.0% compared to the sales development in the same period of the previous year.
Compared to the first three quarters of the previous year, HARTMANN achieved adjusted EBITDA of EUR 139.0 million, a decrease of EUR −53.0 million compared to the same period in 2021. The adjusted EBITDA margin was 8.1%.
In addition to material costs, earnings were also impacted by higher transportation and energy costs and currency effects. In the case of the latter, the high proportion of purchases in US dollars in particular had a negative impact. As the price increases could not fully compensate for increased costs, HARTMANN implemented additional measures to reduce costs and increase efficiency.
In the third quarter, the destabilization of global supply chains continued and energy supply risks also further increased. HARTMANN has largely reduced its dependence on Russian gas by investing in its infrastructure. The Company is able to bridge potential shortages at the affected production sites for a limited period of time. In addition, HARTMANN has built up inventories to a significant extent and also uses external storage solutions. The Company accepts the considerable additional costs associated with this, because securing our ability to supply customers is a top priority.
Despite the difficult market situation, HARTMANN pursued the long-term goals of the Transformation Program with undiminished commitment in the first three quarters of 2022. To strengthen its future viability, the Company has invested in production facilities as well as in its infrastructure and in innovations. Over- all, the program continues to make a noticeably positive contribution to Group earnings.
A challenging market impacts segments to varying degrees
In the Wound Care segment, HARTMANN generated sales of EUR 420.0 million in the first nine months of 2022. Compared to the same period of the previous year, this corresponds to an organic sales increase of 12.2%. In addition to the gradual lifting of coronavirus restrictions worldwide, the positive sales development of individual product groups also contributed. Of particular note: the superabsorbent and silicone-coated products for modern wound care, non-adhesive fixation and compression products in the traditional areas, and Vivano® products for negative pressure wound therapy.
The Incontinence Management segment recorded sales of EUR 535.5 million in the first three quarters of 2022. Compared to the prior-year period, this corresponds to moderate organic sales growth of 4.6%. The continued normalization of bed oc cupancy rates in geriatric and nursing homes contributed to this. Business with pads, gender-specific and unisex disposable pants, and the Vala® care range had a particularly positive im- pact. In addition, the launch of the new absorbent pad technology in the MoliCare® Form product segment continued to develop successfully.
In the Infection Management segment, sales from January to September 2022 amounted to EUR 419.1 million. The sharp organic decline in sales of −19.4% compared to the first nine months of 2021 is in particular due to the absence of the special positive effects of the coronavirus-pandemic, particularly for gloves and personal protective equipment.
SHARE OF TOTAL SALES BY BUSINESS SEGMENT
in EUR million and percent
Complementary Group | Wound |
Divisions | Care |
335.7 (2021: 318.8) | 19.6% | 420.0 (2021: 366.0) | 24.6% |
Infection | Incontinence |
Management | Management |
419.1 (2021: 514.9) | 24.5% | 535.5 (2021: 505.3) | 31.3% |
Inform third quarter 2022 | Business development | 5 |
The Complementary Group Divisions segment generated sales of EUR 335.7 million in the first three quarters. Organic sales growth was 4.9% compared to the same period of the previous year. The CMC Group increased its sales in all product catego- ries. Absorbent cotton products especially recorded positive growth momentum. At the KOB Group, sales growth was again driven in particular by compression bandages. In the KNEIPP Group, the declining market led to a drop in sales.
Weak domestic market
For Germany, the most important sales market, HARTMANN recorded an organic decline in sales of −6.7% in the first nine months of 2022. Sales in the economic region Europe, Middle East and Africa (EMEA, excluding Germany) grew slightly organically by 1.6% in this period. The Asia-Pacific (APAC) region recorded pleasing development with organic sales growth of 2.0% and the Americas region with moderate organic growth of 7.0%.
SHARE OF TOTAL SALES BY REGION
in EUR million and percent
APAC | Germany |
Slight decline in the number of employees
As of September 30, 2022, the HARTMANN GROUP employed 10,468 people worldwide. Compared to the end of fiscal year 2021, this corresponds to a slight decrease of −1.5%, which is due, among other things, to personnel adjustments in the areas of production and sales in Eastern Europe and India.
NUMBER OF EMPLOYEES IN THE HARTMANN GROUP
31.12.2021 30.09.2022
4,375 | 4,323 | Germany |
5,281 | 5,203 | Europe excluding Germany |
104.7 (2021: 99.3) | 6.1%
Americas
55.5 (2021: 47.6) | 3.2%
536.3 (2021: 573.3) | 31.4%
EMEA
(excl. Germany)
972 | 942 | Outside Europe |
Employees 10,628 10,468
Outlook
The economic and geopolitical environment remains challenging for European economies and their healthcare industries: in-
1.013.8 (2021: 984.7) | 59.3%
HARTMANN secures ability to supply products
At the end of the third quarter of 2022, HARTMANN's equity ratio was 59.7%, up 1.1 percentage points on the prior-year figure of 58.6%. HARTMANN continued to invest at a high level as part of the Transformation Program. The Company secured its energy supply through additional substantial expenditures. In order to secure the ability to supply products, HARTMANN recorded an increase in capital commitment for higher inventories. Since the end of June 2022, the net financial status improved by around EUR 5 million to EUR −91.1 million, but it is down compared to the end of the last fiscal year due to the measures mentioned.
flation is at a high level. In Europe and especially in Germany, HARTMANN's core sales market, a recession is to be expected. Among other things, the development of energy prices is increasing the number of unprofitable hospitals, a key customer group for HARTMANN.
From 2023 onwards, HARTMANN will feel the full impact of the higher costs, because the Company will only continue to benefit from more favorable purchasing contracts with fixed prices until the end of 2022. In order to compensate for the further significant cost increases in material, transportation and energy, HARTMANN is once again stepping up its efforts to reduce costs and increase efficiency. Further adjustments to the prices that customers pay are also necessary. Due to massive deterioration of the market situation, HARTMANN is adjusting its earnings forecast for the current fiscal year 2022. The Company expects a reduced adjusted EBITDA of EUR 180 to 220 million (previously: EUR 190 to 230 million) and continues to assume a moderate organic decline in sales.
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Disclaimer
Paul Hartmann AG published this content on 22 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2022 08:13:07 UTC.
