B. Braun business performance robust in 2020: firm foundation laid for continued growth in the next decade
The B. Braun Group recorded € 7,426.3 million in sales in Fiscal Year 2020 (previous year: € 7,471.3 million).
The B. Braun Group recorded € 7,426.3 million in sales in Fiscal Year 2020 (previous year: € 7,471.3 million). “2020, the year of the pandemic, demonstrated the special responsibility we shoulder across the globe. We have lived up to this responsibility while proving our resilience,” said B. Braun CEO Anna Maria Braun today at an online press conference. “Our sales have remained stable despite challenging conditions, because of our continued focus on the long-term: we have conducted sustainable business for decades, and we are well positioned with our portfolio and international presence,” said Braun.
The coronavirus pandemic has impacted B. Braun in various ways. The sales of products such as implants from the Aesculap division and basic medical care products including infusion solutions fell considerably due to the postponement of non-essential surgeries in hospitals worldwide. However, the company was able to offset these losses with increased demand in other areas; for example, with pharmaceutical products to treat COVID-19 patients, infusion pumps and hygiene management. Products for acute dialysis also showed a significant increase in sales due to the pandemic. Large number of products we manufacture in-house allowed B. Braun to maintain a reliable supply for its customers during the pandemic.
B. Braun’s EBITDA margin rose in the reporting year from 14.4 percent to 14.9 percent, for an EBITDA of € 1,103.2 million (previous year: € 1,079.1 million). Earnings before taxes came in at €416.1 million (previous year adjusted: € 400.2 million). “Given the pandemic, we are satisfied with this earnings trend,” said Braun. “The ongoing digitalization of our processes, measures taken to limit the effects of pandemic allowed us to work more efficiently and further reduce our costs. This trend is a step in the right direction. Because negative effects from the crisis will continue to linger, we cannot let up on using our resources in a very focused manner in 2021.”
When it comes to shaping the world of medical technology and the health sector of tomorrow, new technology and digital transformation are crucial. Under “B. Braun – the next decade”, B. Braun has developed a strategic framework for 2020 through 2030 that builds a foundation for continued, sustainable growth. To protect and improve the health of people around the world into the future, the medical technology and pharmaceutical company will continue digitalization and development of key technologies, such as robotics or biotechnology, which will deliver value for both the company and its customers. Digital systems allow B. Braun to optimize its structures and accelerate processes. “The pandemic has already changed many things in the world’s health care systems. Appreciation of health care and confidence in technology have risen, international cooperation has been strengthened, and digitalization has accelerated noticeably. This presents new opportunities for our business that we intend to leverage into the next decade,” said the CEO. More information on www.bbraun.com/digital-is-the-new-normal
Investments back up, net financial debt down
In 2020, B. Braun again invested over € 1 billion in new production and in research and development projects, to grow and secure its business activities. In the United States, extensive investments were made in the Allentown and Daytona Beach locations to expand production capacity and meet the needs of the dynamic U.S. healthcare market. The expansion of pharmaceutical capacity—for example, in Berlin—continued around the world, along with expansion projects for medical devices, including infusion sets, intravenous access devices and accessories. In Spain, the Aesculap division completed a project to automate their suture material production. “The uncertainty brought about by the pandemic, demanded discipline in managing our investment budget. Despite the unknowns, we were able to finish work on important investments and advance our major strategic projects—an important foundation for our future growth,” said CFO Dr. Annette Beller, when presenting the financial figures.
B. Braun also greatly reduced its net financial debt in the 2020 fiscal year by 14.0 percent, to € 2,537.9 million (previous year: € 2,951.9 million).
Over 64,000 employees: Dependability in crisis
The fact that the B. Braun Group has always been able to fulfill its responsibility in this pandemic is due, more than anything, to the 64,317 people the company has employed as of December 31, 2020. “We owe a special thanks to our employees. Their motivation, flexibility and readiness, ensured that our products and services reached our customers without fail in the face of strained supply chains and global restrictions,” said Braun.
More information on www.bbraun.com/committed-to-the-fight-against-corona
The slight decrease in employees of 0.4 percent compared to the previous year (64,585) is the result of targeted adjustments and optimized processes in the production facilities and sales departments of individual national subsidiaries.
B. Braun trains young people in Brazil, Germany, France, Malaysia, Poland, Switzerland and Vietnam. In the reporting year, 1,110 (previous year: 1,105) people were in B. Braun’s apprenticeship program in these countries. A total of 360 young people (previous year: 384) completed their apprenticeship, and 289 (previous year: 291) accepted offers to join B. Braun afterwards.
More information on our business performance can be found in our Annual Report at www.bbraun.com/ar2020.