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Embrace a relaxed, conversational tone as we delve into Fresenius' robust start to the year, their Spanish subsidiary's stellar performance, and their strategy to thwart potential US tariffs.
The healthcare colossus, Fresenius, is off to a flying start in 2022, thanks to a surge in revenue and earnings, specifically in the drug division Kabi and the Spanish subsidiary Helios. CEO Michael Sen expresses optimism that they will meet their annual targets, despite the looming threat of US tariffs. Fresenius plans to present compelling arguments to keep tariffs low — perhaps by discussing drug shortages, for instance.
The execs are keeping a close eye on pharmaceutical shortages in certain US regions. Fresenius is currently engaged in conversations to demonstrate that their domestic productions in the US can significantly alleviate the shortage crisis. Approximately ten percent of Fresenius' business is located in the US.
According to Sen, the adjusted operating profit (EBIT) increased by four percent to €654 million, surpassing analysts' estimates. Cost savings played a pivotal role in the positive development, alongside a seven percent rise in revenues to €5.6 billion. Net income expanded by twelve percent to €416 million.
Europe's largest healthcare provider, Fresenius Helios, experienced "excellent profitability" in Spain, which helped counterbalance the losses in Germany following the expiration of energy cost subsidies. Helios' revenue surged by eight percent to around €3.4 billion, although EBIT dipped by four percent to €333 million. The steep EBIT drop in Germany to €157 million was a setback.
The healthcare company Fresenius Kabi, known for its assortment of drugs and products like artificial nutrition, reported a five percent increase in revenues to €2.14 billion and a 16 percent jump in EBIT to €360 million.
By 2025, Fresenius aims to maintain organic revenue growth of four to six percent, with adjusted operating profit expected to climb by three to seven percent in constant currencies.
Although Fresenius doesn't mention specific figures, the company is believed to target an additional €180 million in annual savings by the end of 2025 as part of their FME25 transformation program, along with portfolio optimization, such as divesting select non-core assets like certain assets of Spectra Laboratories and clinic operations in Malaysia.
Source: ntv.de, jwu/rts
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[1] "Fresenius Medical Care Targets Annual Savings of EUR 180 Million by 2025" - Reuters[2] "Fresenius to Sell Select Assets of Spectra Lab" - GreenBlue[3] "Fresenius Medical Care Reports Strong Q1 2025 Results" - PR Newswire[4] "Fresenius to Divest Clinic Operations in Malaysia" - DealStreet Asia[5] "Fresenius Medical Care Reports Strong Q1 2025 Results" - Seeking Alpha
- As part of their FME25 transformation program, Fresenius aims to achieve additional €180 million in annual savings by 2025, according to Reuters.
- In a bid to optimize its portfolio, Fresenius plans to sell select assets of Spectra Laboratories, as reported by GreenBlue.
- Fresenius Medical Care recently reported strong Q1 2025 results, as announced by PR Newswire and also highlighted on Seeking Alpha.
- On the heels of their successful Q1, Fresenius Medical Care also announced their intentions to divest clinic operations in Malaysia, as reported by DealStreet Asia.
- To thwart potential US tariffs, Fresenius is likely to discuss the impact of drug shortages, cost-cutting measures, and their Spanish subsidiary's performance in its negotiations, as suggested in the discussion following the bolded text.
