By Andrea Figueras
Fresenius upgraded its earnings targets for the year as a whole on the back of what it called a strong performance throughout the first three quarters of the year.
The German health-care company said Thursday that it now expects earnings before interest and taxes to remain broadly flat compared with last year’s figure, while it previously estimated it to be in between a mid-single-digit decline and broadly flat.
Fresenius continues to expect revenue to grow in a mid-single-digit percentage range, and maintained its target of a 10% to 14% operating income margin by 2025.
For the third quarter, the company reported revenue of 5.52 billion euros ($5.83 billion) compared with EUR5.39 billion in the year-earlier period.
EBIT came in at EUR346 million, down from EUR416 million, while it swung to an after-tax loss of EUR406 million from a profit of EUR321 million due to the valuation effect of Fresenius Medical Care of EUR594 million, it said.
The deconsolidation process of Fresenius Medical Care is on track and should be effective by December this year, the company said. Fresenius Medical Care was presented as a single item in the financial statements of the Fresenius Group for the first time in the third quarter.
For the quarter ended in September, Fresenius Medical Care posted revenue of EUR4.94 billion, down from EUR5.1 billion last year. Operating income decreased 28% at constant currency to EUR324 million, while net profit slumped to EUR84 million from EUR230 million.
Write to Andrea Figueras at [email protected]
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