MEDISANA: Revenue grows but earnings significantly burdened; focus on innovation
MEDISANA: Revenue grows but earnings significantly burdened; focus on innovationNeuss, June 30, 2011 – MEDISANA AG reports that its consolidated revenue grew from EUR 36.5 million to EUR 46.3 million in the 2010 financial year, according to preliminary figures. While revenue was up in line with expectations, the company, however, incurred significant charges to its operating earnings that particularly arose from extraordinary non-cash effects.
Earnings before interest and tax (EBIT) amounted to EUR -3.6 million (previous year: EUR 0.5 million), while consolidated net income stood at EUR -5.9 million (previous year: EUR -0.4 million). MEDISANA suffered major price erosion and competitive pressure among relevant key products in this context. Personnel costs and research and development expenses increased due to acquisitions, but also in connection with the targeted workforce expansion for the development of the Vita Dock series, as well as the Home of Wellness area. In addition, the subsidiary Gimelli Laboratories Co. Ltd., Hong Kong and China, (Gimelli) failed to generate its EUR 0.5 million budgeted earnings contribution. As a consequence of these divergences from budget, impairment losses of EUR 1.6 million were applied to goodwill and intangible assets as part of impairment tests. The second major non-cash charge arose from a EUR 2.5 million change to deferred taxes.
Given these circumstances, the Management and Supervisory boards of MEDISANA have decided to focus to a greater extent on innovation and new products, and initial related measures have already been launched. The company’s activities will be concentrated particularly on the blood sugar, massage and mobile health segments where positive market trends are being observed. MEDISANA was an early mover in positioning itself in these areas with new and innovative products.
Publication of 2010 annual financial statements
Annual General Meeting, Düsseldorf
September 21, 2011
Jagenbergstraße 19, 41468 Neuss
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Kapstadtring 10, 22297 Hamburg
T.: +49 (0) 40 6378 5410
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