Half-year results 2023 and investment plans for Lemgo
Brasseler Group records 8.5% growth in the first half of the year, above the forecast growth of 5.4% for the MedTech sector worldwide *
Brasseler Group net sales slightly ahead of plan and above very good 2022 result
Growth drivers are human medicine and dental implantology
Investments in new production building and in further modernization and standardization of IT landscape (data analytics and AI)
Lemgo, 25. August 2023
The medical technology Gebr. Brasseler Group presents its results for the first half of 2023.
After a successful 2022 with 8.5% growth to EUR 213 million in net sales, the family-owned company continues its growth path in the current year, despite challenges in the markets. Net sales are slightly above plan for the year and, at 8.5%, above the very good result of the previous year. Whereas last year the increased cost of energy and materials had a significant impact on operating profit (EBIT) (down 1.3%), the challenge in the current year is to compensate for the sharp rise in personnel costs and further price increases by our suppliers.
“We were able to offset part of the cost increase through price increases,” reports Stephan Köhler, spokesman for the Management Board. “Thanks to long-term optimization initiatives and the easing of energy prices, we expect operating profit (EBIT) for 2023 as a whole to be slightly above the previous year’s level.”
Developments in the business areas
The traditional core business of dentistry is growing slightly at the end of the half-year, but below plan. The gloomy economic situation is also having a noticeable impact here, as dental maintenance frequently entails additional payments from patients. The DACH region leads the growth field in the dental sector compared to the previous year. Growth in the remaining European markets is in the low single-digit percentage range compared to the previous year and is slightly below expectations. In Asia and the Americas, we expect a sideways movement at the end of the half-year.
The path of internationalization, product innovation and digitization that we have embarked upon will be systematically pursued in the field of dentistry. The digital inventory management system “Dentything” presented at the leading international dental industry trade show IDS 2023 is attracting more and more interest in the German market. Brasseler has received several inquiries for strategic cooperation.
The development in the business fields of the so-called CDM “Contract Development and Manufacturing” as a supplier for worldwide leading medical technology companies in human medicine (e.g. orthopedic surgery) and dental implantology is very dynamic. “Thanks to the early attainment of certification under the new, strict European Medical Device Regulation and further forward-looking investments, we see growth of 34% in human medicine and 16% in dental implantology at the end of the first half of the year,” says Stephan Köhler.
Investments
Brasseler continues to invest, both at the Lemgo site and in future topics. The construction of a new production building with >6,000 sqm is in full swing and on schedule. The move into the new building in the summer of 2024 will bring further significant steps in increasing productivity. Further progress is being made in modernizing and standardizing the IT landscape throughout the Brasseler Group. The basis for this is a new IT strategy, which was updated at the end of the half-year. One focus here is the expansion of capabilities in the area of data analytics and AI.
Press contact
Laura Fuchs
Corporate communication
Phone +49 (0) 151 54087468
presse@brasseler.de