Fresenius Medical Care Q3 Profit Surges, Revenues Down; Updates FY24 Profit View

Fresenius Medical Care

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(RTTNews) - Fresenius Medical Care AG & Co. KgaA (FMS) reported Tuesday that its third-quarter net income attributable to shareholders surged 153 percent to 213 million euros from last year's 84 million euros.

Basic earnings per share increased 153 percent to 0.73 euro from 0.29 euro a year ago. Basic earnings per ADS were 0.36 euro, up from 0.14 euro in the prior year.

Operating income climbed 42.7 percent from last year to 463 million euros. EBITDA increased 6.5 percent to 828 million euros.

Total revenues, meanwhile, dropped 3.6 percent to 4.76 billion euros from last year's 4.94 billion euros. The decline was 2 percent at constant currency rates. The revenue was hit by divestments resulting from execution of the portfolio optimization plan to exit non-core and dilutive assets.

During the third quarter, the company's closed divestments included clinic operations in Curacao, Guatemala and Peru.

However, organic revenue growth was 2 percent supported by Care Enablement and Care Delivery. Underlying U.S. dialysis treatment volume growth turned positive.

Looking ahead to fiscal 2024, the company now expects operating income to grow by 16 to 18 percent compared to prior year's 1.54 billion euros. Before, the company expected operating income to grow by a mid- to high-teens percent rate compared to prior year.

The company has tightened its operating income growth outlook toward the upper end of the previous range.

Revenue is still expected to grow by a low- to mid-single digit percent rate compared to prior year's 19.05 billion euros.

The company also reconfirmed its targets to achieve an operating income margin of 10 percent to 14 percent by 2025. This excludes impacts from portfolio changes.

Fresenius Medical Care delivered 173 million euros additional sustainable savings year-to-date, well ahead of the targeted 100 million euros to 150 million euros by year end 2024. The company confirmed its target of 650 million euros sustainable savings by 2025.

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