2019 operating results: pfm medical reports growth in all focus fields
In the period from 01/01 to 31/12/2019, pfm medical generated revenues totalling at EUR 115.5 million. This is equivalent to a 5.1% increase over the previous year (EUR 109.9 million) for the internationally operating medium-sized family company from Cologne, Germany. In 2019, pfm medical’s earnings before interest and tax (EBIT) amounted to kEUR 1,746 . Combined with the higher margin, which rose by 0.5% to 60.4%, this increased gross profit to kEUR 3,887.
pfm medical’s products, services and range of therapies are segmented into four medical focus fields: Surgery, Histotechnology, Cardiovascular Technologies and Infusion. All focus fields grew in the 2019 business year, with the Surgery segment reporting the strongest growth. As in the previous year, mesh implants grew at the fastest rate in this segment. Once again in 2019, the Histology focus field benefited from the production company pfm medical tec gmbh which was founded at the Dielheim site five years ago. At the same time, the Cardiovascular Technologies focus field was restructured and also grew in spite of a more focused product range and leaner organisational structures.
Increased international focus
One of pfm medical’s strategic goals is to further expand its international activities. This development continued successfully again last year, as evidenced by higher growth in the overseas revenues (10.1%) than domestic revenues (+1.1%). This was primarily due to the region with the fastest growth, China (25%), a market that pfm medical also serves. Also the sales company in England grew at an above-average rate of roughly 15%. Growth in the other foreign sales companies was somewhat slower. In line with the strategy of growing globally as a specialist, overseas revenues accounted for 46.5% of the overall revenue, a rise of 2.1%.
pfm medical continues to invest in the future
pfm medical’s planning and actions focus on products and services that help improve patients’ quality of life and offer the best possible working conditions for users at clinics, practices, nursing homes and laboratories. Once again, the company consistently pursued this goal in the 2019 business year.
- Through its financial stake in the Israeli medical technology startup Clear-Cut Medical, pfm medical secured exclusive European distribution rights for the innovative mobile magnetic resonance (MR) system ClearSight™. With this system, pfm medical is expanding its portfolio in the breast surgery sector with a groundbreaking method for the precise evaluation of cutting edges during breast cancer surgery.
- Nano4Imaging became the exclusive sales partner for the MR-compatible EmeryGlide guidewire, yet another innovative product added to pfm medical’s cardiovascular product range.
- In 2019, the first kEUR 3,248 tranche was invested in expanding the ethylene oxide sterilisation plant at the Nonnweiler site. This is the largest single investment to date, with an anticipated total investment volume of roughly EUR 6.5 million in 2019 and 2020. Its completion in 2020 will bring the total annual sterilisation capacity to 34,000 standard European pallets.
Outlook for 2020
As in 2018, the medical technology market was shaped by the EU Medical Device Regulation again in 2019. pfm medical is in a strong position to respond to these requirements, with its own production facilities and global product approvals. Also pfm medical founded its subsidiary pfm medical expert gmbh in early 2020 to offer its accumulated expertise as a service to the market and professionally assist other companies in the sector in fulfilling the ever stricter regulatory requirements.
Since early 2020, the coronavirus has been everywhere. pfm medical is also economically affected by it, for example in China, a rapidly expanding market for pfm medical. It can be assumed that revenues in China with a volume of roughly kEUR 2,000 will be delayed for a certain period. It is currently impossible to reliably forecast whether this will be compensated later in the year, and how the economies in pfm medical’s other sales regions will be affected. However, pfm medical operates in an industry that is considered system-relevant, allowing the assumption that this is only a temporary slowing of its long-term growth trend. pfm medical still expects growing revenues in 2020 – at a stronger level than the 2019 trend.
Short profile pfm medical
pfm medical is one of the leading German providers of special solutions in the healthcare sector. The Cologne-based family-owned company was founded in 1971, and has 600 employees at twelve international locations. In 2019, pfm medical generated an EBIT (earnings before interest and taxes) of EUR 1.7 million with a turnover of EUR 115.5 million.
The medical product provider holds 340 granted property rights in over 90 patent families worldwide and markets a diverse portfolio comprising nearly 3,000 products in over 100 markets.
Its products span the following four medical focus fields: Surgery (e.g. drainage systems and titanised mesh implants), infusion (e.g. mobile electronic infusion pumps and implantable port catheters), histotechnology (e.g. blades and laboratory equipment) and cardiovascular technology (e.g. implantable occlusion devices for the interventional treatment of congenital heart disease and special catheters).
pfm medical combines products and services to a comprehensive package of solutions. For instance, the company provides training and advice to users such as medical practitioners, nursing staff, patients and their families to support optimal therapy outcomes in both inpatient and outpatient healthcare. When developing innovative solutions in close cooperation with leading medical practitioners and specialist partners, pfm medical invariably focuses on improving the quality of life of both users and patients.
pfm medical ag
Tel.: +49 (0)2236 9641-370