Fresenius Medical Care AG & Co. KgaA (FMS) announced an impressive 153% surge in third-quarter net income attributable to shareholders, reaching €213 million, up from €84 million euros the previous year.
The basic earnings per share also rose significantly by 153% to €0.73, compared to €0.29 in the same period last year. For American Depositary Shares (ADS), the earnings per share increased to €0.36, up from €0.14 the year before.
Operating income experienced a notable increase, rising 42.7% to €463 million from the previous year. Similarly, EBITDA showed an increase of 6.5%, totaling €828 million.
Despite these gains, total revenue declined by 3.6% to €4.76 billion, down from €4.94 billion the year before. The decline stood at 2% when adjusted for constant currency rates. This decrease was primarily due to divestments as part of the company's strategy to exit non-core and underperforming assets. During the third quarter, Fresenius Medical Care divested clinic operations in Curacao, Guatemala, and Peru.
However, the company experienced a 2% organic revenue growth, bolstered by advancements in Care Enablement and Care Delivery areas, with U.S. dialysis treatment volume showing positive growth trends.
Looking forward to fiscal 2024, Fresenius Medical Care anticipates a 16% to 18% increase in operating income compared to the previous year's €1.54 billion. This reflects a refined growth outlook towards the upper range of earlier estimates, which projected a mid- to high-teen percentage increase.
Revenue growth is expected to remain modest, with projections in the low- to mid-single-digit percent over the previous year's €19.05 billion.
The company reaffirms its goals to attain an operating income margin between 10% and 14% by 2025, excluding impacts from portfolio adjustments.
Year-to-date, Fresenius Medical Care has achieved €173 million in sustainable savings, outpacing the 2024 year-end target of €100 million to €150 million. The company remains committed to achieving €650 million in sustainable savings by 2025.
