pfm medical reports an extraordinary fiscal year 2020: Revenues and profit both up
In the 2020 reporting period, the pfm medical group raised its revenues by kEUR 19,839 to EUR 135.3 million, an increase of 17.2 percent. EBIT also enjoyed a positive development. Significant additional revenues were generated with non-recurring aid consignments of personal protective equipment, with disproportionately low margins.
In the first quarter, i.e. before the global effects of the coronavirus pandemic, the revenues of the pfm medical Group were above the prior-year figure, as expected. Thanks to the one-off import of personal protective equipment from China and the resale at a small margin it was possible to mitigate supply bottlenecks. This generated non-recurring additional revenues of kEUR 16,082 in April.
International business remains strong and is still growing
The pfm medical group operates in 100 countries with 12 business locations. This also explains the great importance attached to international expansion. China is and will remain an important market. In early 2020, that country was particularly hard hit by the coronavirus, but the economy recovered quickly. After a drop in sales in the spring, it achieved growth of 39 percent for the year as a whole thanks to catch-up effects.
Various investments were also made in 2020 with a view to sustainably strengthening and expanding the company.
- Of the total capital expenditures of kEUR 8,157, an amount of EUR 7 million was invested in the expansion of the EtO sterilization facility at the Nonnweiler site. Having been started in the prior year, this measure was completed in 2020.
- The pfm medical family was joined by a new member: At the beginning of 2020, the accumulated knowledge on the EU Medical Device Regulation (MDR) was pooled in pfm medical expert gmbh, which is now also offered to external companies to support their conversion to MDR.
- Effective 1 July 2020, pfm medical ag took over the business operations of Hirtz & Co. KG (HiCo), thus further expanding its medical technology portfolio. The focus of the mid-sized medical technology company, which has become an independent part of the pfm medical family as pfm medical hico gmbh, is on products such as hypo/hyperthermia systems, anti-decubitus solutions and inhalation products.
- The subsidiary pfm medical tpm gmbh, which operates primarily in the outpatient market, was able to offer a new mobile infusion pump from the proven BodyGuard family in the market. The infusion pump is part of a comprehensive solution concept comprising compatible products and services for outpatient care. The pump itself and the associated consumables plus accessories will be marketed in the outpatient care sector by pfm medical tpm gmbh in Germany, Austria and Switzerland.
Outlook for 2021
After the increase in sales in 2020, mainly achieved through the one-off transaction, the 2021 reporting period will once again be a normal fiscal year – without special effects. It is therefore assumed that there will be a drop in revenues. Adjusted for prior-year special effects, the core business is expected to grow. Restrictions caused by the pandemic have not been considered in the planning. Based on past experience, it is advisable to manage the company with a short-term outlook in this phase.
But it is important that the long-term growth trend of pfm medical is intact and if good opportunities arise this will be supported by further acquisitions. In the first quarter of 2021, group revenues were slightly up on the prior year. This can be interpreted as a positive signal because in March 2020 revenues were given an unexpected boost by anticipatory effects due to the pandemic.
Nonetheless, it is still to be expected that the economy will continue to be adversely affected in 2021 by the consequences of the global coronavirus pandemic. This will also affect the business development of pfm medical, even though the company operates in a stable market environment and is part of a system-relevant industry. We expect risks in particular in the area of suppliers, which could mean that components are not available in time for production. Overseas shipping has also been delayed and made considerably more expensive by the shortage of sea containers. The further development is currently difficult to forecast. It is assumed, however, that both operations and the associated procurement of medical products will once again be postponed. It should be possible to catch up much of this by the end of 2021. We therefore remain cautiously optimistic for the current reporting period!
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 630 employees at twelve international locations. The medical product provider holds 360 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).
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