B. Braun increases sales to €4.4 billion.
Melsungen (Germany). In fiscal year 2010, sales at the B. Braun Group rose 9.8 percent to € 4,422.8 million (previous year:€ 4,028.2 million). Profit before Taxes increased to € 389.6 million over the previous year’s figure of € 336.1 million. Consolidated annual net profit increased by 15.8 percent to € 277.4 million in 2010 (previous year: € 239.6 million).
“A further increase in sales and earnings means we maintained our growth trend”, said Chairman of the Management Board Prof. Dr. h. c. Ludwig Georg Braun at a press conference on March 18, 2011, where he presented the figures of the previous year together with Dr. Heinz-Walter Große, Vice Chairman and successor to Prof. Braun. “Thanks to the inventiveness, enthusiasm, and commitment of our employees, the B. Braun Group enjoyed a healthy performance in 2010”, said Dr. Große, who will take over the chairmanship on April 1.
Hospital Care and Aesculap Divisions were the biggest contributors to sales growth. The Asia/Pacific (+ 25.9 percent) and Latin America (+16.5 percent) regions were also highly dynamic. In the USA, sales increased by 10.0 percent. Growth in established markets in Europe (+ 7.2 percent), particularly in our home market of Germany (+ 3.2 percent), was moderate. Currency gains had a positive impact on the sales growth.
Sales in the Hospital Care Division climbed 9.6 percent to € 2,086.7 million (previous year: € 1,903.8 million). Demand for our Space products (Infusomat®S pace and Perfusor® Space) was highly encouraging. In parenteral nutrition, both multi-chamber systems (Nutriflex®) and single-chamber solutions (in particular Lipofundin®) recorded healthy increases. Other contributors were IV catheters (Introcan Safety® and Vasofix Safety®), needles and sets for regional anesthesia, as well as injectable medicines (in particular Propofol-®Lipuro and Duplex®).
The Aesculap Division posted record growth in sales, totaling € 1,281.1 million (previous year: € 1,153.2 million), an 11.1 percent increase year-on-year. The drug-eluting balloon catheter product SeQuent® Please continued its success story. Sales of Vena Cava filters and single-use elastomeric pumps also continued to grow. In our surgery business, endoscopic singleuse instruments (AdTec®) and our SterilContainer™ systems were the main contributors to growth, in orthopedics knee systems and Novocart 3D, a product for treating articular cartilage damage. Sutures and the spinal implant business segment also contributed to the division’s good performance.
With sales growing 5.5 percent, the OPM Division posted revenue of € 554.6 million in the reporting year (previous year: € 525.8 million). Skin and wound management posted above-average sales growth, with the Prontosan® product family being a major contributor. The areas of incontinence (Actreen® catheter) and urology achieved satisfactory sales growth. Within urology, products for irrigation therapy (Uro-Tainer®) posted encouraging sales growth.
Sales in the B. Braun Avitum Division increased by 12.9 percent to € 474.8 million (previous year: € 420.5 million). Disposables and concentrates for dialysis posted strong growth, as did sales of dialyzers (Diacap®). Sales of dialysis machines gained momentum over the year and performed well. Our dialysis clinics continued to post healthy organic growth. The centers in Poland, South Africa, and the Czech Republic were the biggest contributors. As to disposable and machine business, Asia (in particular China), the Middle East, and Europe are the key markets.
Research and Development
Another increase in spending on research and development was implemented. It rose 11.7 percent year-on-year to € 155.4 million (previous year: € 139.1 million).
Further expansion of worldwide production capacity
The investment program begun in 2007, which is worth approximately € 1.4 billion, was largely completed in the reporting year and will end in 2011. The expansion of the manufacturing facility for empty bags for parenteral nutrition at the Crissier (Switzerland) site was successfully completed and the dialyzer production capacity in Radeberg and Berggießhübel (both in Germany) was expanded.
Expansion of capacity for infusion pumps, clinical nutrition, and dialysis machines at the Melsungen site (Germany) and for production of Ecoflac® in Rubí (Spain) is almost complete. The expansion and restructuring of the Penang site (Malaysia) is taking shape, and completion of the first phase is anticipated in 2011, with the project as a whole running until 2014.
A further investment program of € 1.6 billion was signed off back in December 2009. Aimed at expanding production capacity of our core product lines, its regional priorities are Malaysia, the US, and Germany. The main focus in the US is on expanding the factory for the new container generation at the Irvine site (California). In Germany, the construction work for the LIFE Nutrition (clinical nutrition) factory is completed and the validation process has started. With constructing the forging, container, and power systems production facilities in Tuttlingen and expanding manufacturing capacity for dialysis solutions in Glandorf, the further investment program – next to Germany – focuses on the BRIC countries. Funding will come from operating cash flow.
Number of employees increased
At year-end, B. Braun had 41,666 employees (previous year: 39,504), a 5.5 percent increase year-on-year. The number of German employees increased by 5.4 percent to 11,251 (previous year: 10,672). In the reporting year, 225 (previous year: 223) new trainees were hired. At present, 699 (previous year: 682) young people are training with B. Braun in Germany. This represents a 2.5 percent year-on-year increase in the total number of trainees.
Profit-sharing-pay-outs for employees
To safeguard the viability of locations local retention agreements have been in place in Melsungen, Berlin, and Tuttlingen (Germany). Each employee may be asked to work up to 104 additional hours per year. In return employees share in the company’s success and no redundancy lay-offs are allowed for the term of the agreements. Profit-sharing pay-outs depend on the number of hours worked by the individual employee and for fiscal year 2010 was capped at € 1,230.
“We anticipate Group sales will increase by 6 percent in fiscal year 2011”, said Prof. Braun. “We are well-equipped to cope with increasing demand thanks to our expanded capacities.
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