2018 – The fiscal year in numbers
In the 2018 reporting year, B. Braun sales grew by 5.3 percent at constant exchange rates, which is within our strategic growth corridor of five to seven percent. The euro was strong against most currencies over the past fiscal year. Primarily the devaluations of the US dollar, Russian ruble, Brazilian real and Argentinian peso influenced the development. Sales in euros thus increased 1.8 percent to €6.9 billion (previous year: €6.8 billion).
As forecasted, B. Braun‘s Avitum and Aesculap divisions business was very dynamic. Also as expected, the Hospital Care division was hit hardest by exchange rate trends. The Out Patient Market division‘s sales continued to grow, with encouraging sales of diabetes and disinfection products.
We were unable to increase our operating profit in the reporting year, meaning we could not reach our goal of continuous profit growth that we placed on ourselves. Profit was impacted by increases in the cost of production, start-up costs for new plants, ever increasing regulatory requirements, production stoppages at our plant in Irvine, CA (USA), and price competition once again intensifying.
EBITDA at constant exchange rates is 2.2 percent below the previous year. The key performance indicators used to manage operations, interim profit and EBIT, were below the projected target range of between €585 million and €625 million. Consolidated net income at constant exchange rates fell. In the previous year, earnings after taxes were positively affected by a lower tax rate. Overall, the B. Braun Group is in a good, stable financial condition.
| 2017 | 2018 | Change in % | |
| Sales (in € million) | 6,788.9 | 6,908.1 | + 1,8 |
| EBITDA (in € million) | 985.1 | 952.5 | - 3,3 |
| Profit before taxes (in € million) | 513.7 | 451.6 | - 12,1 |
| Consolidated net income (in € million) | 411.5 | 328.4 | - 20,2 |
| Employees (as of December 31) | 61,583 | 63,751 | + 3,5 |
Investment activities in fiscal year 2018 focused on increasing our production capacity and on new products and processes. We were also able to secure technology and access to markets in strategically important business areas through targeted acquisitions. Total additions to property, plant, and equipment, intangible assets, and financial assets, as well as additions to investments in associates and acquisitions of fully consolidated companies, amounted to €921.6 million (previous year: €969.2 million). This was offset by depreciation totaling €431.9 million (previous year: €410.2 million).
System partnership, collaboration and profitability are the core themes which are pursued in all divisions and regions, and supported by central services and departments. The goal is to grow together in order to ensure that our company will be able to operate independently over the long-term. This will allow us in the future to continue making a contribution to protecting and improving the health of people all over the world.
As a system partner, we aim to provide our customers with the best-possible service. In many cases, added value for our customers is created through the interplay of several different B. Braun products and services. This is due to our broad portfolio and the resulting combinations of products and services, which is a particular strength of ours. We are convinced that high quality at fair prices, products which are customized to align with treatment methods and customer processes and absolutely reliable delivery offer the added value which is required today and in the future.
By aligning our products and services based on the goals and processes of our customers, we increase the beneficial value of our work, reduce costs for our partners and help them succeed. Relationships within the company and with patients, users and suppliers are characterized by transparency, trust and recognition. We have set a goal of increasing sales by five to seven percent per year through 2020. In that case, annual sales can be increased up to € 8 billion at the end of the strategic period.