Best results in the company's history kick off B. Braun’s anniversary year
Plus a record € 1 billion in investments
- Sales increased by 5.8 % in local currencies, by 2.4 percent to € 5,169.5 million (previous year: € 5,047.8 million)
- Consolidated annual net profit improved 9.3 percent to € 315.5 million (previous year: € 288.6 million)
- EBITDA € 784.9 million (previous year: € 757.5 million, +3.6 %)
- Expenditure on research and development up by 14.1 percent to € 218.6 million (previous year: € 191.5 million)
- Equity improved by 8.2 percent to € 2,445.0 million (previous year: € 2,259.2 million)
- Number of employees worldwide increased by 7 percent to 49,889 (previous year: 46,607); in Germany, up by 5.6 percent to 12,726 (previous year: 12,052), 50.000 in January 2014
- Investments in new factories, dialysis centers, and financial assets at a record level of € 1 billion (previous year: € 0.6 billion)
Melsungen (Germany). 2013 was a successful fiscal year for B. Braun Melsungen AG. Total sales of the B. Braun Group amounted to € 5,169.5 million (previous year: € 5,047.8 million), representing year-on-year growth of 2.4 percent in euros. In the markets, sales increased 5.8 percent in local currencies. Consolidated annual net profit increased by 9.3 percent to € 315.5 million (previous year: € 288.6 million).
“We have started our anniversary year with the best results in our company’s history,” said Chairman of the Board, Dr. Heinz-Walter Große, on March 21, 2014, at a press conference during which he and CFO Dr. Annette Beller presented the key financial indicators for the year 2013.
Development by division
The Hospital Care and B. Braun Avitum divisions reported healthy sales growth. The Aesculap and OPM Divisions were also above the previous year's levels.
Sales in the Hospital Care division climbed 2.6 percent to € 2,474.4 million (previous year: € 2,412.7 million). Demand for infusion therapy primary care products for hospitals (parenteral nutrition solutions and injectables, for instance) was particularly strong.
The Aesculap division reported sales of € 1,444.2 million (previous year: € 1,442.5 million), and was thus slightly above the previous year’s level. When adjusted for currency effects, the growth of Aesculap was with 3.9 percent above that of the previous year. This division was particularly affected by currency fluctuations.
The OPM division achieved sales of € 609.0 million (previous year: € 606.2 million), which represents a marginal 0.5 percent increase on the previous year. This compensated for the discontinuation of insulin production and the transfer of veterinary business to the Aesculap Division. Wound Care and Incontinence Care achieved above-average growth for the division.
In the reporting year, sales in the B. Braun Avitum division increased by 9.5 percent to € 612.5 million (previous year: € 559.2 million). Considerable growth was once again achieved in the product sector. Primarily as a result of acquisitions, the number of patients in the dialysis provider business within Germany and Russia grew further.
Development by region
In their local currencies, the Latin America, Asia, and Australia regions achieved strong growth. When converted into the euro, however, a more moderate +4.7 percent growth was seen in Latin America and +2.9 percent in Asia and Australia. In Europe (excluding Germany), B. Braun experienced stable growth of 3.8 percent, despite the persistently challenging market environment. The 1.7 percent growth seen in Germany was more or less in line with the growth of the market as a whole. In US dollars, the North America region saw sales grow by +2.1 percent, representing a slight year-on-year increase. In the Africa and Middle East region, growth was very dynamic at 12.4 percent.
Investments at a record level
B. Braun once again expanded its production capacities in the reporting year in order to meet sustained demand. As part of this, the company completed the cross-divisional modernization and expansion of its Penang site in Malaysia, made global investments in increasing capacities for IV sets, and started boosting the production of small volume parenterals in Berlin (Germany). B. Braun also modernizes the Tuttlingen site (Germany) for the Aesculap division. In Sempach (Switzerland), the OPM division constructs a new production facility to increase production capacities for wound care and disinfection products.
The B. Braun Avitum division further expanded its dialysis provider business through the acquisition and construction of 15 dialysis centers in Russia and 11 in Germany. B. Braun also acquired a 15.08 percent holding in Rhön-Klinikum AG. Additions to fixed assets, intangible assets, and financial investments, as well as additions to investments in associates and acquisitions of fully consolidated companies, amounted to € 1,029.4 million (previous year: € 588.5 million).
Increase in employees
As of December 31, 2013, the B. Braun Group had 49,889 employees worldwide, 7.0 percent more than in the previous year. This increase is primarily attributable to an expansion of production, acquisitions, and the foundation of new companies in a number of countries. In Germany, the number of employees increased by 5.6 percent to 12,726 (previous year: 12,052). This increase was largely as a result of new recruitment in the area of production and the acquisition of ViaMedis Nierenzentren GmbH. In January 2014, the number of employees worldwide exceeded 50,000.
Under the location retention agreements in Melsungen, Tuttlingen, and Berlin (Germany), employees benefit from a higher profit-sharing pay-outs according to the number of hours worked. In fiscal year 2013, these pay-outs amounted to € 1,345 (previous year: € 1,092).
356 (previous year: 309) trainees successfully completed their training at our German, Polish, and Swiss locations. In the reporting year, the company took on 217 new trainees (previous year: 217). In Germany, Poland, and Switzerland, there are currently 936 (previous year: 924) young people training with us, an increase of 1.3 percent year on year.
“I would like to express my sincere gratitude to our employees for their hard work and dedication, and look forward to continuing this excellent cooperation,” Dr. Heinz-Walter Große said.
Based on constant rates, B. Braun anticipates profitable growth for the Group of between 3 and 7 percent for fiscal year 2014. The B. Braun Avitum division, which focuses on dialysis, is expected to experience significantly stronger growth than the rest of the Group.