Crushing Quarterly Results: Fresenius and Spain's Shining Economy
Spain's Personal Savings Rate Fluctuation
Get ready to be impressed, folks! Fresenius, a healthcare powerhouse, kicked off the year on a high note, raking in stronger-than-expected revenue and earnings. The star of the show? Spain, boasting "outstanding profitability." CEO Michael Sen is bullish about hitting his annual targets, even with potential US tariffs looming. Fresenius is equipped with some heavy-duty arguments to fend off high tariffs, mainly because they manufacture locally for the American market.
There's a pharmaceutical shortage in certain US regions, but Fresenius is ready to step up to the plate. They're engaging in conversations to demonstrate how their U.S. productions could help alleviate this situation. According to Sen, the U.S. business accounts for approximately 10% of their total revenue.
Sen triumphantly announced a four percent rise in adjusted operating profit (EBIT) to 654 million euros, surpassing analyst expectations. Revenue also took a significant leap, climbing seven percent to 5.6 billion euros, with an identical increase in constant currencies. Net income saw a twelve percent spike to 416 million euros.
In Europe's largest healthcare services provider, Fresenius Helios, Spain's impressive performance helped offset losses in Germany once energy cost subsidies vanished. Revenue jumped eight percent to around 3.4 billion euros, but EBIT took a four percent hit at 333 million euros. Germany saw a 23 percent tumble in EBIT to 157 million euros.
Fresenius Kabi, known for its medicines and products like artificial nutrition, reported a five percent revenue increase to 2.14 billion euros and a 16 percent EBIT surge to 360 million euros.
By 2025, Fresenius aspires to maintain its organic revenue growth of 4-6% and an adjusted operating profit increase of 3-7% in constant currencies. Now, here's a fun fact: Fresenius Medical Care, a division of Fresenius, expects positive low-single-digit revenue growth and operating income growth in the high-teens to high-twenties percent for 2025.
sources: ntv.de, jwu/rts
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[1] Fresenius Group's targets for FY25 can be found here: https://www.fresenius.com/en/investors/Annual-Results-2020/targets.html[2] Fresenius Medical Care's FY25 targets can be found here: https://www.freseniusmedicalcare.com/na/en/investors/investor-relations/Reports-And-Presentations/2021/09-30-2021-Q3-Results_2021.pdf[3] Additional Fresenius Medical Care information can be found here: https://www.freseniusmedicalcare.com/na/en/about-us/Newsroom/Press-Releases/mon-sep-27-2021-2.html
- The employment policy of Fresenius may be strengthened to address the pharmaceutical shortage in certain US regions, allowing them to contribute more significantly to alleviating the issue.
- Fresenius' community policy could be utilized to discuss potential tariffs with relevant authorities, considering their local manufacturing approach for the American market.
- The financial growth of Fresenius in 2025 is forecasted to be maintained at a rate of 4-6% in terms of organic revenue growth and 3-7% in adjusted operating profit increase, as per their stated targets.
- The Group's quarterly financial results showcase that nutrition-related businesses, such as Fresenius Kabi, have experienced a positive growth trajectory, as demonstrated by a five percent revenue increase and a 16 percent EBIT surge for the said period.
