FMC gives gloomy outlook after profit slump in 2022

taketonews

By Britta Becks

FRANKFURT (Dow Jones) – At the dialysis service provider Fresenius Medical Care (FMC), the profit erosion continued in the fourth quarter of 2022. Higher personnel costs and increased expenses in the supply chain weighed on the largest subsidiary of the Fresenius Group, which has a strong presence in the United States. In 2022, shareholders should only receive a dividend of EUR 1.12 per share. For 2021, Fresenius Medical Care AG & Co. KGaA had paid a dividend of EUR 1.28 per share.

As the Bad Homburg DAX group also announced, sales in the final quarter increased by 8 percent (adjusted for currency effects by 2 percent) to EUR 4.997 billion. Analysts had expected average proceeds of 5.07 billion euros. The operating result (EBIT) fell by 22 (currency-adjusted: 28) percent to 352 million euros. Here, the analyst consensus had been 348 million euros. Net income fell by 39 percent (adjusted for currency effects: 47 percent) to EUR 139 million. That is less than analysts had estimated at an average of 147 million euros.

For the year as a whole, sales increased slightly by 2 percent currency-adjusted to 19.40 billion euros. After taxes and third parties, a profit of 673 million euros remained, corresponding to a decrease of 31 percent or 37 percent adjusted for currency effects.

FMC had recently forecast a decline in consolidated earnings in the high teens to mid-twenties percentage range with sales growth in the low single-digit percentage range. After the long Corona dry spell for the past year, FMC had originally planned to return to profit growth and to increase both sales and net income in the low to mid single-digit percentage range.

For the current year, Fresenius Medical Care expects sales growth in the low to mid single-digit percentage range, according to further information on Tuesday. The operating result should remain stable or decline in the high single-digit percentage range.

In 2022, the operating result was positively influenced by financial support from the US government in the amount of 277 million euros. For 2023, however, the company does not expect any further support.

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DJG/brb/kla/cln

(END) Dow Jones Newswires

February 21, 2023 13:48 ET (18:48 GMT)

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