The MEDISANA Group sees a jump in revenue and a substantial improvement in earnings in business year 2006
The MEDISANA Group sees a jump in revenue and a substantial improvement in earnings in business year 2006* Revenue of the MEDISANA Group grows by almost 45 per cent to 23.2 million Euros
* Earnings before interest and taxes (EBIT) soar 61.9 per cent to -1.3 million Euros (2005: -3.3 million Euros)
* One-time effects impact net loss
Hilden (Germany), 12 April 2007 – MEDISANA, a specialist in the field of home health care, recorded substantial improvements in its operating activities in business year 2006. According to the preliminary key figures available, the MEDISANA Group increased its revenue significantly in 2006 by 44.7 per cent from 16.0 million Euros to 23.2 million Euros. This enabled MEDISANA to strengthen its market position and to integrate successfully Promed GmbH, which was consolidated for the entire year for the first time.
Thanks to the strong revenue growth in the Group, gross profit climbed 31.7 per cent to 7.2 million Euros (2005: 5.5 million Euros). The Group’s gross profit margin fell by 3.1 percentage points in 2006 to 31.2 per cent (2005: 34.3 per cent). The reasons for this were the increased commodity and purchase prices as well as entering new distribution channels under the intensified competition of the dynamic growth market for home health care products.
EBIT (earnings before interest and taxes) improved by 2.0 million Euros in 2006 to ‑1.3 million Euros, up from -3.3 million Euros in the previous year.
The consolidated loss amounted to -2.4 million Euros.
The required impairment charged on goodwill from investments and on patents totaling 1.2 million Euros negatively impacted the net loss. Negative effects of 1.0 million Euros arose in connection with the reorganisation of the Group from the impairment loss charged on goodwill from the (25 per cent) investment in the Italian company Sanico S.R.L. Due to the ongoing unsatisfactory business performance, MEDISANA AG ended the cooperation and will serve the Italian market in another form in future. Excluding these one-time effects, the net loss amounted to -1.2 million Euros, up from -3.3 million Euros in the previous year.
Ralf Lindner, CEO of MEDISANA AG, points out that the company was still in alarming financial difficulty a little more than two years ago, emphasising that “the trend points in the right direction. Despite substantial operating progress, we still had to work through negative factors in 2006 that influenced the loss as a result of the reorganisation. We have resolved this and at the same we are seeing the first fruits of our work in the successful repositioning and acceptance on the market”. Commenting on business year 2007, the CEO says “we are upbeat about the future. In 2007, we intend to continue our campaign and further increase our market shares. We will also focus quite clearly on achieving profitability. In view of the dynamic growth prospects, we are well on our way to doing so”.
The company expects strong growth again in 2007, clearly in the double-digit region.
MEDISANA will publish a complete set of annual financial statements when it publishes its Annual Report in May 2007.