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pfm medical steadily continues its course for growth in 2014

18/05/2015 Worldwide

Share of sales of products developed and manufactured in-house is on the rise

Success at international level, especially in the key US market

First quarter of 2015: Sales grow at 9%

In the business year 2014 (January to December 2014), pfm medical was able to further extend its growth in terms of profit and sales. In the period under review, consolidated sales amounted to € 95.4 million, corresponding to a year-on-year increase of 8% (previous year: € 88.5 million). In parallel, the company’s EBIT grew by 45.8% to just under € 9.6 million in comparison to the same period of last year (€ 6.6 million). The number of employees across the company rose slightly as well, from 450 to 465 (as of 30 March 2015).

“The past business year provides evidence once again that we are on a stable path for growth. In particular, we are pleased with the growing share of sales generated from products which we have developed and which

we manufacture ourselves “, says Aurel Schoeller, CEO of pfm medical ag, who is very satisfied with the 2014 business year. “Our intention is to further extend this trend, so as to bolster our flexibility. For that reason as well, we have been producing our laboratory equipment ourselves since April 2015. At international level, we are seeing sustained success in strategically important markets. We are proud of the fact that rising numbers of our cardiac implants are used in North and South America.” As a result, the company (as a manufacturer of in-house-developed, patented implants) was able to supply products to correct congenital and structural heart defects (so-called holes in the heart), especially amongst children.

Growth on a broad scale

The medical engineering company managed to raise the share of sales apportionable to products which it manufactures and develops itself to 47.1% in 2014 (from 43.5% in 2013). With respect to products and services, the main drivers of growth have been therapy management, histological technology, cardio-vascular technologies and surgical implants. By contrast, growth was lower in the operating room equipment segment in line with expectations, due to the strong price pressure resulting from stiff competition. The significant rise in the company turnover of 45% is attributable to various influencing factors, such as strong growth in the therapy management segment, and the fact that costs have increased less rapidly than the growth in sales. The share of international sales of pfm medical has advanced slightly to 43.7% in comparison to 2013 (43.6%), attributable to the strong relative rate of growth especially in Germany. Apart from in Germany, pfm medical continued to generate its largest shares of sales in the two most important foreign key markets for medical engineering, i.e. in North America and the United Kingdom.

“Our financial strength enables us to further invest in our market position and our product portfolio. Related to our sales, we will once again be within a 6 to 7% investment range this year”, states Reinhard Blunck, CFO of pfm medical, explaining the company’s development.

Outlook

In Germany, the company expects sustainable sales growth in the integrated care of patients. This covers the entire process chain from nursing care to the use of own products of pfm medical. To better meet the requirements of patients and users who are transferred from in-patient to out-patient treatment, diverse corporate divisions relating to therapy management, operating room equipment, and surgical implants have been merged together in Healthcare Solutions. In this way the company is taking demographic developments in the healthcare market into consideration, especially as far as the specific needs of critically-ill patients in palliative medicine and oncology are concerned. After their stay in hospital, these patients need to be looked after intensively around the clock.

As early as in the first quarter of 2015 all the indications are that pfm medical will continue its solid course for growth in the 2015 business year. In the first quarter of 2015 the group of companies was able once again to raise its sales by 9% in comparison to the same period in 2014.