Business performance 2016 - pfm medical misses growth targets
The Cologne-based provider of special healthcare solutions, pfm medical, reports revenue of EUR 100.9 million in the fiscal year 2016 (1 January to 31 December 2016), which reflects a decline of 1.2 percent compared to the previous year (EUR 102.1 million). At EUR 1.5 million, earnings before interest and taxes (EBIT) were also lower than in 2015 (EUR 4.1 million). Investments, special factors and currency effects had a negative impact on earnings. The pfm medical group broadened its range of solutions and services with new products and extended services.
In 2016, revenue declined by 1.2 percent from the previous year (EUR 102.1 million) to EUR 100.9 million across the entire solutions portfolio. The company achieved growth in the field of histotechnology with its own laboratory equipment. In the area of surgery, sales in the mesh implants segment grew by 9 percent. However, for example, a major call for tenders, which could not be concluded in 2016, slowed the development in the focus area of cardiovascular technologies. Conversion to the self-developed infusion pump also took place internationally at a slower pace than expected. Overall, the share of in-house production rose by 1.1 percent to 51.3 percent.
The pfm medical Group achieved lower EBIT (earnings before interest and taxes) in 2016 than in the previous year (EUR 4.1 million) with EUR 1.5 million. This is due to investments in the areas of research and development as well as infrastructure. Higher personnel costs, special factors and currency fluctuations in the Japanese Yen and Argentine Peso also reduced earnings.
“Investing in our strategic development naturally has an impact on earnings. The further expansion of our organization for the approval of existing and new products as well as the optimization of research and development processes are closely attributable to our diversified solution and service portfolio,” explained Aurel Schoeller, CEO of pfm medical ag, regarding the development in 2016. “This is how we are meeting the very different and increasingly stringent regulatory requirements in Germany as well as abroad and are opening up further growth potential. The good revenue performance in the first half of 2017 compared to the previous year shows we are on the right track.”
More resources for research, development and infrastructure
To promote further innovations, pfm medical hired research and development personnel and increased its resources overall compared to the previous year by 19 percent to EUR 4.076 million. The range of solutions and services will be expanded on this basis with new products and services. The guiding principle in this regard is better efficiency and demonstrably higher benefits to patients. An example of this is the 36-month study presented in 2016 on the influence of the TiLOOP® Total 6 mesh implant on the quality of life of patients with pelvic floor descent.
The company additionally invested primarily into the modernization of IT infrastructure, especially the Enterprise Resource Planning System of the parent company as well as in buildings, production plants and plant equipment.
More personnel for international growth
In 2016, the number of employees at pfm medical further grew to 529 in Germany, the growth was especially in the area of quality control and product approval. This is how the specialist provider of healthcare solutions is positioning itself to meet nationally and internationally increasing regulatory requirements. The focus for the Cologne-based company is on further internationalization, especially in North America and Asia, the stronger shift towards a solutions-provider for specific indications, and the further development of its portfolio. Internationally, the company has, for example, supplemented the US sales division with application specialists who have special expertise in cardiology products requiring a higher degree of education. The cooperation with American market partners has also been invigorated. In China, where pfm medical is now established, the product portfolio has been expanded in line with additional product approvals in the area of surgery.
Strategically important portfolio expansions in 2016
- With the ASEPT® Drainage Kit L, pfm medical is the only manufacturer in Germany to offer combined low-vacuum/gravity bottles for the long-term drainage of ascites (abdominal dropsy) with reduced pain - primarily relevant for ambulatory care.
- The self-developed infusion pump LimLess® ensures better safety especially in an outpatient environment with double safety-relevant systems. The graphical user interface and touch-screen make the pump particularly easy to use.
- The self-developed sliding microtomes pfm Slide 4004 M and 4005 E enable particularly easy and stable blade movements as well as safe handling.
- pfm medical also developed an online training course for medical product consultants together with the e-learning specialist IMC. This service promotes a continuous, high level of quality for consulting because facilities achieve full benefits to patient health only when they use products correctly.
Short profile of pfm medical ag
pfm medical is one of the leading German providers of special solutions in the healthcare sector. The Cologne-based family company was founded in 1971, and has more than 500 employees on twelve sites around the world. In 2016, pfm medical achieved an EBIT (earnings before interest and taxes) of 1.5 million euros from 100.9 million euros in sales. The provider of medical products has registered more than 80 patents, utility models and trademarks. The corporation offers over 3,000 products as part of an extensive portfolio which is distributed in over 100 markets. Its products extend to the following four key medical areas: infusion (e.g. infusion pumps and implantable port catheters), surgery (e.g. drainage systems and mesh implants), histotechnology (e.g. blades and laboratory equipment), and cardiovascular technology (e.g. implantable occluders and special catheters). pfm medical integrates products and services into a comprehensive solution package. Corporate staff trains and advises users, such as physicians, nursing staff, patients and relatives. This is how pfm medical supports the optimal course of therapy in the clinic and outpatient care. In the development of innovative solutions in close cooperation with leading medical practitioners and specialist partners, pfm medical invariably focuses on improvements in the quality of work and the quality of life of both users and patients.
|pfm medical ag |
Head of Corporate Communications
T +49 (0)2236 9641-370
F +49 (0)2236 9641-99370
|pfm medical ag |
Corporate Communications Manager
T +49 (0)2236 9641-373
F +49 (0)2236 9641-99373