B. Braun News 

2017 fiscal year: B. Braun increases sales and earnings, with investments of one billion euros

B. Braun Melsungen AG finished the fiscal year 2017 with total sales of € 6,789 million (previous year: € 6,471 million).

Melsungen. Sales increased by 4.9 percent from the previous year, or 5.7 percent after currency corrections. Consolidated net income increased by 3.9 percent, to € 411.5 million (previous year: € 396 million). “Our earnings for the 2017 fiscal year were satisfactory. We continued to grow organically and succeeded in posting the largest sales number in B. Braun’s company history, confirming the significantly increased earnings from the previous year", said Chairman of the Management Board Prof. Heinz-Walter Große during the financial press conference on Friday March 23rd. Prof. Große was joined by Chief Financial Officer Dr. Annette Beller to present the figures for 2017. "The year was shaped by the sizable investments we made to modernize our production facilities", explained Dr. Annette Beller.

 Year 2016 Year 2017  
Revenue (in mil. EUR) 6,4716,789 +4.9% 
Profit before taxes (in mil. EUR) 527.8 513.7 -2.7% 
Consolidated annual net profit (in mil. EUR) 396 411.5 +3.9% 
EBITDA (in mil. EUR) 976 985.1 +1.0% 
EBITDA adjusted by extraordinary effects (in mil. EUR)  1,045 +7.2% 
    
Investment in financial and tangible assets and expenses
for research & development (in mil. EUR) 
1,098 1,285.1 +17.4 
    
Employees (as of December 31)58,037 61,583 +6.1% 
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Dynamic development in the OPM and B. Braun Avitum divisions

All the divisions contributed to the positive sales growth results for the Group. Business was very dynamic in the Out Patient Market and B. Braun Avitum divisions. 

The largest division, Hospital Care, increased sales by 4.1 percent to € 3,114 million (previous year: € 2,991 million). Growth was strong in the Compounding areas for production of custom solutions for clinical nutrition and IV sets. Sales also increased for large-volume standard solutions. Sales performance in the US was satisfactory for 2017, and the European market continued to grow. At the country level, sales growth came primarily from Germany, Russia and Spain. 

The Aesculap Division posted sales of € 1,786 million (previous year: € 1,725 million), up 3.6 percent from the year before. The essential drivers of growth were China, Germany and Japan. Additional growth came from Turkey, Indonesia, South Korea, Italy, Mexico, Argentina and Poland. Sales growth was mainly realized in angioplasty products, surgical instruments, shunts, access ports and knee implants. 

The Out Patient Market (OPM) division posted sales of € 827.5 million (previous year: € 782 million), an increase of 5.9 percent. Strong growth was seen in the United States, with the sale of elastomeric pumps, parenteral nutrition and intravenous needles. Other growth markets were Germany, South Africa, Portugal and Brazil. Development was very solid in Basic Care, Wound Care and Disinfection product ranges. 

Sales in the B. Braun Avitum division increased by 9.2 percent to € 1,031 million (previous year: € 945 million). As the operator of 370 renal care centers, B. Braun Avitum supplies 30,000 dialysis patients worldwide. In the product business, sales were strong for consumer products and dialysis machines, and the water treatment systems business also expanded. The worldwide performance of B. Braun renal care centers was equally promising. This business segment continued to expand, with the acquisition and founding of new renal care centers, and they have already had a positive impact on sales.

 

Growth in specific regions

Germany, with sales growth of 3.5 percent, showed positive results in a very competitive environment. 

In Europe (excluding Germany) sales growth was robust at 4.7 percent in local currencies, while growth in euros was 5.1 percent. 

Performance in the Asia-Pacific region was strong in local currencies, with sales in local currencies up 9.2 percent. Growth in euros was 6.3 percent, with sales increasing to € 1,236 million. China, South Korea and the Philippines achieved particularly strong sales growth. 

North America showed solid sales growth both in US dollars, with 5.2 percent, and in euros, with 3.1 percent. Expenses of € 65 million were incurred due to regulatory requirements and extensive modernizations in US production facilities. 

The Africa and Middle East region also performed very well in the B. Braun Group’s currency, with a gain of 7.5 percent. Growth in local currency was 5.1 percent. Latin America also showed impressive sales growth of 8.9 percent in local currencies. Growth in euros was 9.7 percent. Progress was especially strong in Brazil, Chile, Colombia and Mexico.

 

Over a billion more euros in investment
In 2017, for a second straight year, B. Braun had over one billion euros in investment. After investing € 1.098 billion the previous year, in 2017 the Group invested € 1.285 billion for the expansion of production capacities and for research and development of new products and processes. 44.2 percent of this investment went to the company's sites in Germany. 

The Hospital Care division expanded its global capacities for large-volume infusion solutions in Spain, Indonesia, Malaysia and Germany. The expansion of the enteral nutrition pumps production capacity and other equipment continued at various locations. Research and development activities were primarily focused on increasing patient and user safety and improving hospital workflows. 

Aesculap combines both internal and external innovations in its research and development activities. Internal research focused on the innovation fields of miniaturization and biological solutions. The emphasis of external research was on young companies and business incubators. In Spain, the division continued to upgrade a previously acquired building to allow automation of production in Closure Technologies. The renovation of the division's headquarters in Tuttlingen also continued with additional investments.

The Out Patient Market division focused on the developing the urology, stoma care, hand disinfection and wound care product ranges. Investments were made in the production of pen needles at the Penang site, among others. In France, the first steps were taken in the site master plan, and planning continued for the Sempach site in Switzerland. 

The goal of research and development for the B. Braun Avitum division was to improve extracorporeal blood treatment quality and efficiency. In addition, the division increased market share by expanding existing renal care centers, building new centers, and acquiring centers in various countries. Construction on a new modern filter production facility at the Wilsdruff site in Germany also made great progress.

 

62,000 employees worldwide

The B. Braun Group had 61,583 employees as of December 31, 2017. This is up 6.1 percent from the total of 58,037 employees the previous year.

In Germany, the number of employees climbed by 3.6 percent to 15,415 (previous year: 14,876). This was due to smaller acquisitions, along with expansion of production capacity and recruitment for R&D. 

In light of demographic changes, making qualification possible with a wide range of vocational training programs is very important to B. Braun. 342 trainees successfully completed their training at our locations in Brazil, Germany, Malaysia, Poland and Switzerland in 2017 (previous year: 373). Over the same period, the Group hired 261 trainees (previous year: 275) after the completion of their training. In Brazil, Germany, Malaysia, Poland and Switzerland, there are currently 1,091 young people doing their apprenticeship with us (previous year: 1,065).

 

Outlook

"For the financial year 2018, we expect that the Group will continue to grow in sales and earnings", Prof. Große stated at the financial press conference. Sales growth will be between five and seven percent, assuming exchange rates remain constant. The process of "digitization" is an integral component of all of the Group's development and projects and is something B. Braun considers to be part of its continued progress and a guarantor of long-term competitiveness.

The system partnership approach will also stay in focus in 2018. "In the spirit of the principle "Sharing Expertise", we strive as a "System Partner in Health Care" to develop effective solutions and innovative standards for health care in close partnership with our customers and partners", Große explained.

The first signs of success in the market show that B. Braun is on the right path with these initiatives.