2019 – The fiscal year in numbers
In the 2019 reporting year, B. Braun sales grew 6.7% at constant exchange rates, which is within our strategic growth corridor of 5–7%. The euro was somewhat weaker against our key currencies over the past fiscal year. Appreciations of the US dollar and Russian ruble affected the development of the reporting currency as a result. Sales in euros increased 8.2% to more than € 7.4 billion (previous year: € 6.9 billion).
All divisions showed a good increase in sales, with products from the areas of basic care, hemodialysis, infusion systems and compounding selling very well. All regions performed well overall, with the main drivers being markets in North America, China, in the ASEAN region, in Brazil and Colombia. Europe in general performed well, and we also achieved a satisfactory increase in sales in Germany.
We were unable to increase our operating profit in the reporting year, meaning we could not reach the goal of continuous profit growth that we set ourselves. Profit was impacted by increases in the cost of our production facilities, startup costs for new plants and, in particular, ever-increasing regulatory requirements (e.g., MDR). The regulatory upgrades for our plant in Irvine, CA (US) were properly implemented in coordination with the FDA and were largely completed in 2019.
EBITDA at constant exchange rates is 11.1% above the previous year, affected by the application of new accounting standards (IFRS 16), totaling € 1,058.4 million (previous year: € 952.5 million). The key performance indicators used to manage operations, interim profit and EBIT were below the projected target range of € 525–550 million. At constant exchange rates and adjusted for extraordinary items, these performance indicators are € 466.6 million and € 468.1 million, respectively, and were therefore 12.5% and 14.7% below the previous year, respectively. Consolidated net income, at constant exchange rates and adjusted for extraordinary one-off items, fell to € 279.5 million (previous year: € 328.4 million). The B. Braun Group remains in good, stable financial condition.
|2018||2019||Change in %|
|Sales (in € million)||6,908.1||7,471.3||+ 8.2|
|EBITDA (in € million)||952.5||1,079.1
|Profit before taxes (adjusted in € million)||451.6
|Consolidated net income (adjusted in € million)||328.4||288.5||- 12.2|
|Employees (as of December 31)||63,571
We expanded our capacities in our core businesses in 2019. For example, remodeling and upgrading our facilities in Berlin, automating the manufacturing of sutures in Spain and expanding the production capacity of continence products in France. We continued our investment program in the U.S. and expanded our network of dialysis centers as well. Total additions to property, plant and equipment, intangible assets and financial assets, and additions to investments in associated companies and acquisitions of fully consolidated companies amounted to € 894.6 million (previous year: € 921.6 million). This was offset by depreciation totaling € 599.2 million (previous year: € 431.9 million).
System partnership, collaboration and profitability are the core themes which are pursued in all divisions and regions, and supported by central services and departments. The goal is to grow together in order to ensure that our company will be able to operate independently over the long-term.
As a system partner, we aim to provide our customers with the best-possible service. In many cases, added value for our customers is created through the interplay of several different B. Braun products and services. This is due to our broad portfolio and the resulting combinations of products and services, which is a particular strength of ours. We are convinced that high quality at fair prices, products which are customized to align with treatment methods and customer processes and absolutely reliable delivery offer the added value which is required today and in the future.
By aligning our products and services based on the goals and processes of our customers, we increase the beneficial value of our work, reduce costs for our partners and help them succeed. Relationships within the company and with patients, users and suppliers are characterized by transparency, trust and recognition. This will allow us in the future to continue making a contribution to protecting and improving the health of people all over the world.