Fresenius Medical Care Q1 Results Down; Confirms FY21 Outlook - Quick Facts

(RTTNews) - Fresenius Medical Care AG & Co. KGaA (FMS) reported Thursday that its first-quarter net income declined 12 percent to 249 million euros from last year's 283 million euros.

Basic earnings per share decreased 10 percent to 0.85 euro from 0.95 euro a year ago.

Operating income fell 15 percent to 474 million euros from last year's 555 million euros. Operating margin was 11.3 percent, down from 12.4 percent a year ago.

Revenue declined 6 percent to 4.21 billion euros from prior year's 4.49 billion euros. Revenues grew 1 percent at constant currency. Organic growth amounted to 1 percent.

Further, the company confirmed fiscal 2021 financial targets stating that the underlying development in the first three months was in line with expectations.

The Company continues to expect revenue to grow at a low- to mid-single digit percentage rate and net income to decline at a high-teens to mid-twenties percentage rate against the 2020 base.

Rice Powell, Chief Executive Officer of Fresenius Medical Care, said, "While we have seen significant progress in the roll-out and adoption of vaccinations globally, COVID-19 infection rates in several countries remain high. This will, unfortunately, continue to affect many of our patients. Consequently, this will also continue to impact our organic growth and weigh on our earnings development throughout the year."

Fresenius Medical Care said it will experience an adverse earnings effect due to the U.S. government delaying the CKCC models (Comprehensive Kidney Care Contracting) by nine months to January 1, 2022. This effect will be offset by the further extension of the U.S. Medicare sequestration relief from April 1, 2021 until the end of 2021.

Further, Fresenius Medical Care said it has initiated the FME25 program to support its 2025 strategy, further strengthen profitability and compensate for the negative earnings effects of the COVID-19 pandemic. The company is currently undergoing a detailed review of its global operating model and will provide an update in the second half of 2021.