Financial performance in 2021: Core business sees continued growth despite Covid restrictions
The 2021 reporting period was again dominated by the Covid-19 pandemic and the associated restrictions. This had varying effects on the individual companies of the pfmmedical group. While pfm medical tpm gmbh was severely impacted by the measures, revenue in China actually exceeded expectations by growing almost 40 per cent on the previous year. Overall revenue grew by EUR 7.9 m (+6.6 per cent), without accounting for the one-off additional business from sales of surgical masks in 2020.
Alongside the excellent growth in China, new subsidiary pfm medical hico gmbh performed extremely well, growing by 23 per cent above expectations by year end despite the procurement crisis in semiconductors. 2021 saw the gross margin in core business remain stable, despite rising logistics costs.
Covid restrictions lead to significant fall in costs
Staffing costs rose by 4.5 per cent on the previous year due to strategic acquisitions intended to further boost revenue. On the other hand, the protective measures related to the pandemic led to reductions in other operational costs, particularly for travel expenses, sales and advertising costs, and consultancy fees.
These cost reductions were accompanied by further one-off revenues, leading to an overall result that was much more positive than that of the previous year. EBIT grew by EUR 3.5 m annually, an increase of 95 per cent.
Increasing in-house production
The level of in-house production in 2020 was heavily influenced by the one-off additional business in masks (51.4 per cent without mask sales). This grew to 54.4 per cent in 2021, due mainly to the positive development in the Chinese market and the strong demand for products from pfm medical hico.
International business remains strong and is still growing
The pfmmedical group is active in 100 countries, with 12 sites overall. This also explains the great importance attached to international expansion. The Chinese market is particularly important here. 2021 saw the positive trend in China continue. Revenue exceeded expectations and grew by almost 40 per cent on the previous year.
Investments fell in 2021. This came after two intensive years in 2019 and 2020, however, which saw the installation of the EtO sterilisation system in Nonnweiler (cold sterilisation method using ethylene oxide). Investments in tangible and intangible assets were at EUR 2.6 m. This figure includes investments in the patient business (together with an acquired service provider) and acquisitions of sales rights in France, as well as a photovoltaic installation in Cologne.
Outlook for 2022
Development going forward is difficult to forecast at present. We currently expect continued revenue growth for 2022. Alongside the continuing effects of the pandemic, the war in Ukraine is also impacting financial performance, above all due to rising material and logistics prices. Importantly, however, pfmmedical’s long-term growth trend remains unbroken despite all these crises.
pfmmedical 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 660 employees at twelve international locations. The medical product provider holds 370 granted property rights in over 90 patent families worldwide and distributes a broad portfolio in more than 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).
pfmmedical 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, pfmmedical invariably focuses on improving the quality of life of both users and patients.
pfm medical ag
Tel.: +49 2236 9641-370