Fresenius Medical Care Q3 Profit Down, Cuts FY22 Profit Outlook

(RTTNews) - Fresenius Medical Care (FMS) reported that its third quarter net income decreased by 16% from the prior year. The company cut its net income outlook for full year 2022 due to delayed effects from improvements in North American Services business in challenging environment. But it confirmed its annual revenue target.

Looking head for fiscal year 2022, the company now expects net income attributable to shareholders decline from a high-teens to a high-teens to mid-twenties percentage range. Previously, it was expected that net income attributable to shareholders would decline around a high teens percentage range.

The company confirms its target for revenue to grow at a low single digit percentage rate in full year 2022.

Revenue and net income guidance are both on a constant currency basis and excluding special items.

According to the company, the target range of 40 million euros-70 million euros set for 2022 as part of the FME25 transformation program has been reached with savings of 54 million euros in the first nine months of the year. The company will continue to look for opportunities to extend FME25 initiatives to support the turnaround plan.

Fresenius Medical Care said, based on its new operating model that will come to life in January 2023, that it will not only simplify its organization and significantly reduce overhead costs but rigorously optimize its portfolio in both - the future Care Delivery (Health Care Services) and Care Enablement (Health Care Products) segments. The subsequent capital allocation will focus on profitable growth businesses and improving operational leverage.

Fresenius Medical Care reported that its third quarter net income attributable to shareholders of the company decreased by 16% year-over-year to 230 million euros, while it was down 24% at constant currency. Basic earnings per share decreased by 16% to 0.78 euros, while EPS was down 24% at constant currency.

Excluding special items, net income attributable to shareholders declined by 17% year-over-year to 231 million euros. It was down 25% at constant currency.

Excluding special items, earnings per share declined by 17% to 0.79 euros. The adjusted earnings per share were down 25% at constant currency.

But quarterly revenue increased by 15% to 5.096 billion euros, while it was up 3% at constant currency or 2% organic basis.

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