07.23.08
$5.3 Billion
Ludwig Georg Braun, Chairman of Management Board
Michael Ungenthum, Vice Chairman of Management Board
and Chairman of Executive Board of Aesculap AG & Co. KG,
Aesculap Division
Caroll Neubauer, Head of North American Region
Wolfgang Feller, Head of Avitum Division
Meinrad Lugan, Head, OPM and Hospital Care Divisions
How do you say “steady growth” in German? We’re not sure, but the answer may be synonymous with B. Braun. In its 168th year (fiscal year 2007), the company posted a 7.6% increase. (Editor’s note: Percentages reflect changes based on the local currency in which the financials were reported—in this case, the euro—and don’t take into account foreign currency exchange fluctuations year over year. Dollar amounts were converted using the exchange rate on the last day of the reporting period, Dec. 31.) Sales for the year were $5.3 billion. Net profit increased 19.7% to $320 million. The company also increased its workforce by almost 10%.
According to the company, Russia, the United Kingdom, Spain and China experienced “outstanding growth” during the past fiscal year. Eastern Europe also posted sales gains, as did the Asia-Pacific region (excluding China and Japan), B. Braun officials said.
B. Braun’s Hospital Care division, which manufactures infusion therapy products, needles and syringes, catheters, IV sets and other products for basic clinical care and intensive medicine, posted a 7.4% sales gain, totaling approximately $2.5 billion. The performance largely was driven by the US market, Europe and Russia—where B. Braun recently has increased its activities. The company reported double-digit growth in sales of IV pumps and related disposables and IV catheters.
For 2007, sales in the Aesculap unit grew 7.1% to reach $1.5 billion. Research and development were the name of the game for Aesculap, with expenditures 30% more than the company average. The division develops surgical technologies, sterile container systems, closure technologies, as well as orthopedic, spine, neurosurgery and vascular systems. All product areas experienced strong rates of growth, often in the double digits, the company reported. Surgical instruments and suture materials remained the sales leaders of the division, while cardiology and neurosurgery also made an above-average contribution to growth in sales for the year.
The strong dependence of the company’s Outpatient division on US business (50%) led to division growth of only 1.3% as a result of currency exchange rates—a total of $696 million. Double-digit growth, however, was generated in European markets (Germany, the United Kingdom, Spain, France, Russia). By combining the hospital and homecare markets, B. Braun management is positioning the Outpatient division to capitalize on the transition from inpatient to outpatient care, creating a sales continuum. In terms of new product launches, antibacterial wound care products with silver coating, a new generation of catheters with optimized packaging and the ongoing expansion of the MRSA (methicillin-resistant Staphylococcus aureus) product portfolio have proven highly successful, the company said.
B. Braun’s Avitum division, which provides dialysis products and services, was the growth leader across the company’s four main divisions. Sales growth was 19.6%, exceeding management’s expectations. Revenues totaled approximately $517 million—the result of a 16% increase in product sales and a 27% bump in services. International growth also played a role in a larger bottom lime. In the past fiscal year, the division expanded its activities in Poland, the Czech Republic, Slovakia, Spain, Hungary and South Africa. The company also broadened its service with the acquisition of Baxter Healthcare Ltd.’s Renal Therapy Services business in the United Kingdom.
For 2008, B. Braun officials said the company is reaching manufacturing capacity in hospital care and medical devices. As a result, a majority of investments made in 2007 were earmarked for expanding production capacities for core products. Work will continue this year on new facilities in Germany, as well as expanding capacity in the United States, Brazil, Peru and Spain.
The company also predicted sales growth of more than 8% (after exchange rates) for FY08. Products driving growth are expected to be automatic IV systems and IV catheters for the Hospital Care division, core categories for Aesculap and IV nutrition for the Outpatient division. The largest percentage increase in growth once again, however, will be for dialysis equipment, B. Braun predicts. In the United States, the company expects 10% revenue gains (in dollars).
KEY EXECUTIVES:
Ludwig Georg Braun, Chairman of Management Board
Michael Ungenthum, Vice Chairman of Management Board
and Chairman of Executive Board of Aesculap AG & Co. KG,
Aesculap Division
Caroll Neubauer, Head of North American Region
Wolfgang Feller, Head of Avitum Division
Meinrad Lugan, Head, OPM and Hospital Care Divisions
NO. OF EMPLOYEES:
35,000GLOBAL HEADQUARTERS:
Melsungen, GermanyHow do you say “steady growth” in German? We’re not sure, but the answer may be synonymous with B. Braun. In its 168th year (fiscal year 2007), the company posted a 7.6% increase. (Editor’s note: Percentages reflect changes based on the local currency in which the financials were reported—in this case, the euro—and don’t take into account foreign currency exchange fluctuations year over year. Dollar amounts were converted using the exchange rate on the last day of the reporting period, Dec. 31.) Sales for the year were $5.3 billion. Net profit increased 19.7% to $320 million. The company also increased its workforce by almost 10%.
According to the company, Russia, the United Kingdom, Spain and China experienced “outstanding growth” during the past fiscal year. Eastern Europe also posted sales gains, as did the Asia-Pacific region (excluding China and Japan), B. Braun officials said.
B. Braun’s Hospital Care division, which manufactures infusion therapy products, needles and syringes, catheters, IV sets and other products for basic clinical care and intensive medicine, posted a 7.4% sales gain, totaling approximately $2.5 billion. The performance largely was driven by the US market, Europe and Russia—where B. Braun recently has increased its activities. The company reported double-digit growth in sales of IV pumps and related disposables and IV catheters.
For 2007, sales in the Aesculap unit grew 7.1% to reach $1.5 billion. Research and development were the name of the game for Aesculap, with expenditures 30% more than the company average. The division develops surgical technologies, sterile container systems, closure technologies, as well as orthopedic, spine, neurosurgery and vascular systems. All product areas experienced strong rates of growth, often in the double digits, the company reported. Surgical instruments and suture materials remained the sales leaders of the division, while cardiology and neurosurgery also made an above-average contribution to growth in sales for the year.
The strong dependence of the company’s Outpatient division on US business (50%) led to division growth of only 1.3% as a result of currency exchange rates—a total of $696 million. Double-digit growth, however, was generated in European markets (Germany, the United Kingdom, Spain, France, Russia). By combining the hospital and homecare markets, B. Braun management is positioning the Outpatient division to capitalize on the transition from inpatient to outpatient care, creating a sales continuum. In terms of new product launches, antibacterial wound care products with silver coating, a new generation of catheters with optimized packaging and the ongoing expansion of the MRSA (methicillin-resistant Staphylococcus aureus) product portfolio have proven highly successful, the company said.
B. Braun’s Avitum division, which provides dialysis products and services, was the growth leader across the company’s four main divisions. Sales growth was 19.6%, exceeding management’s expectations. Revenues totaled approximately $517 million—the result of a 16% increase in product sales and a 27% bump in services. International growth also played a role in a larger bottom lime. In the past fiscal year, the division expanded its activities in Poland, the Czech Republic, Slovakia, Spain, Hungary and South Africa. The company also broadened its service with the acquisition of Baxter Healthcare Ltd.’s Renal Therapy Services business in the United Kingdom.
For 2008, B. Braun officials said the company is reaching manufacturing capacity in hospital care and medical devices. As a result, a majority of investments made in 2007 were earmarked for expanding production capacities for core products. Work will continue this year on new facilities in Germany, as well as expanding capacity in the United States, Brazil, Peru and Spain.
The company also predicted sales growth of more than 8% (after exchange rates) for FY08. Products driving growth are expected to be automatic IV systems and IV catheters for the Hospital Care division, core categories for Aesculap and IV nutrition for the Outpatient division. The largest percentage increase in growth once again, however, will be for dialysis equipment, B. Braun predicts. In the United States, the company expects 10% revenue gains (in dollars).