Semi-Annual Report 2007: MEDISANA AG Confirms Profitable Growth

Semi-Annual Report 2007: MEDISANA AG Confirms Profitable Growth

  • Best semi-annual result since stock market listing
  • Strong sales growth – 48.7% increase to €12.6m
  • €2.8m upturn in operating result
  • €0.4m semi-annual net profit
  • Positive cash flow

Hilden, August 22., 2007 – MEDISANA, the specialist in the home health care segment, has succeeded in advancing its profitable growth strategy. In the first half-year of 2007 the MEDISANA Group was able to achieve a double-digit increase both in terms of its sales and operating result, thereby continuing the positive trend from the first quarter. At the end of June 2007, Group sales had increased by 48.7% to reach a total of €12.6m (previous year: €8.5m).

Semi-Annual Surplus Underscores Positive Trend in Result
The company’s net profit for the first half-year amounted to a total of €0.4m and thus represented an improvement of €2.6m compared with the same period in the previous year (previous year: €-2.2m). After the relaunch of the brand, along with simultaneous implementation of comprehensive restructuring measures, MEDISANA AG succeeded in achieving a positive net operating profit for the quarter for the fourth time in a row (Q2 2007: T€212).

The operating result of the first six months in 2007 also demonstrates that the turnaround is bearing fruit: The result before interest and taxes (EBIT) improved significantly to reach a total of €0.6m, after a loss of €-2.2m had been reported in the previous year. Accordingly, an upturn in the operating result in the amount of approximately €2.8m was achieved when viewed on the basis of an annual comparison.

Successes in all of the company’s fields of business and in all of its regions of operation contributed to the overall positive development of the company.

The values achieved mark the best semi-annual result since MEDISANA AG was listed on the stock market.

“Our positive and dynamic business development has continued to improve,” commented Ralf Lindner, chairman of the board at MEDISANA AG. “The semi-annual figures are unequivocal – we have established a performance company and with our range of products and services we are now excellently positioned to take advantage of the enormous growth opportunities in the home health care market – on both a national and an international scale.”

Successful Cost Management
With 24.3% the company’s costs of sales rose degressively in relation to the overall sales increase. Other operating expenditures clearly decreased in the first half-year of 2007. Following the campaigns for relaunching the brand in the year 2006, expenditures for marketing and sales were able to be reduced by 12.0% as scheduled to reach a total of €1.9m compared with the same half-year period in the previous year. At the same time, administrative expenses declined by 11.6%.

Improvement in Equity Capital Ratio
The company’s equity capital rose from €12.8m as of December 31, 2006 to a total of €13.2m as of June 30, 2007. This corresponds to an increase of six percentage points in the equity capital ratio or approximately 56%.

Strong Brands and Concentration on Key Business
Apart from the strength of the brands, this positive trend in the company’s result is attributable to the focus which it has placed its own expertise. In accordance with further knowledge gained from research and after problems involving production and approvals, the decision was made to discontinue the company’s commitment to researching and developing the anti-infective agent rebac®. However, the Medisana Group continues to own the existing rights to the active substance. The subsidiary rebac GmbH will thus be dissolved.

Outlook for 2007 Confirmed: Profitability and Clear Increase in Sales Expected
In light of the good performance in the first half-year of 2007 and the traditionally strong business at the end of the year, MEDISANA is exceptionally confident that the targets for the overall year will be achieved; that is, profitability on an annual basis with a clear double-digit increase in sales.

With a current total of €8.3m the order books for the second half of the year are currently 36% higher than the same level of the previous year (previous year: €6.1m).

MEDISANA AG
Itterpark 7-9
40724 Hilden
Tel.: +49 (0) 2103-200 7-60
Fax: +49 (0) 2103-200 7-10
“info@medisana.de”:mailto:info@medisana.de

Further information on the company and its range of products and services can be obtained at:

“www.medisana.de”:http://www.medisana.de