IVF Hartmann increases turnover and profit in financial year 2024
The IVF Hartmann Group closes the 2024 financial year successfully. Thanks to strategic implementation, it grew in new and existing markets and gained market share. One-off effects also had a largely positive impact on sales and costs.
The IVF Hartmann Group's sales and earnings situation developed well in the 2024 financial year, both structurally and under the influence of various special effects. Sales increased by 7.3 % to CHF 158.8 million compared to the previous year. The IVF Hartmann Group grew faster than the market in almost all key product and customer segments.
In addition to the increase in sales, the further improvement in the internal cost structure, various optimizations in the areas of production and materials purchasing, the more advantageous product and channel mix and positive exchange rate effects also contributed to the increase in earnings. Overall, the operating result before interest and taxes (EBIT) rose by 37.2 % to CHF 23.1 million. The EBIT margin rose by 3.1 percentage points to 14.5 %. Consolidated profit increased by CHF 5.2 million to CHF 20.3 million.
Development of the segments
As in previous years, there were differences in the sales and earnings performance of the segments. The advantage of a broad range of products and services with the resulting balancing effects is also evident once again.
In the segment "Wound care" The IVF Hartmann Group recorded an increase in sales of CHF 3.8 million to CHF 44.0 million. The increase was primarily due to the Tactical Emergency Medicine product group, which made larger deliveries abroad. EBIT increased by CHF 2.1 million to CHF 10.3 million as a result of the higher sales revenue.
Sales of CHF 33.9 million in the segment "Incontinence management" increased by CHF 1.8 million compared to the previous year. The Hartmann Easy procurement platform, which was expanded in 2023 to include a billing service for Migel products, continues to be a key driver of this growth. EBIT increased by CHF 0.3 million to CHF 2.8 million based on the product mix and higher sales revenue.
Sales in the segment "Infection management" rose by CHF 4.7 million to CHF 58.9 million compared to the previous year, partly as a result of the slight recovery in the disinfection market and increased demand for products from the risk prevention range. EBIT rose by CHF 3.8 million to CHF 8.3 million due to the product mix, lower procurement costs in some cases and higher sales.
Sales in the segment "Other Group activities" increased slightly compared to the previous year, by CHF 0.5 million to CHF 22.0 million. EBIT remained constant compared to the previous year at CHF 1.6 million.
Cash flows, balance sheet structure and dividend
In addition to a positive cash flow from operating activities, there were cash inflows from payments received, including as a result of the repayment of the loan to related parties (Paul Hartmann AG) of CHF 23.5 million. Cash outflows resulted from payments for investments in financial assets, property, plant and equipment and intangible assets as well as due to the dividend paid out. Overall, cash and cash equivalents increased from CHF 87.9 million as at December 31, 2023 to CHF 94.9 million as at December 31, 2024. Some of the cash and cash equivalents are invested as fixed-term deposits (with maturities of less than three months) with banks. As in the previous year, there were no financial liabilities as at December 31, 2024. The equity ratio rose from 80.1 % in the previous year to 80.4 %.
The IVF Hartmann Group has a strong balance sheet structure, which helps and will continue to help the Group to exploit opportunities in a volatile market environment and to evaluate investments in growth and innovation from a position of strength. The cash management considerations made as part of the strategy have prompted the Board of Directors to propose a special dividend to the Annual General Meeting. The Board of Directors is proposing a dividend of CHF 6.20 for the 2024 financial year to the Annual General Meeting (comprising an ordinary dividend of CHF 3.20 per registered share and a special dividend of CHF 3.00 per registered share); this corresponds to a total distribution to shareholders of CHF 14.88 million (previous year: CHF 19.68 million).
Outlook
Continued volatility is expected on the procurement and, in particular, the sales markets in 2025. The company is focusing on stability for its customers in an environment of uncertainty and cost pressure. Growth is expected through new product launches and expanded distribution in the end customer business, particularly in the DermaPlast segment. The expansion of Tactical Emergency Medicine will be continued, but fluctuations in sales and possible losses compared to the strong previous year are expected here due to the market structure.
At the beginning of the year, the pricing system with the main supplier Hartmann Group will be adjusted in order to optimize OECD conformity and tax compliance for international transfer prices. Overall, sales in 2025 - adjusted for the more volatile Tactical Emergency Medicine business - are expected to be on a par with the previous year. EBIT is likely to be below the record year 2024, but above the level of 2023.
