- Fresenius Medical Care AG & Co FMS has implemented its new operating model with two global segments: Care Enablement (Health Care Products) and Care Delivery (Health Care Services), along with portfolio adjustment.
- In Care Delivery, the company will exit unsustainable markets and divest non-core businesses. In Care Enablement, it will rationalize its global R&D programs and evaluate the divestment of non-core products.
- The company will strictly follow its policy to align dividend payments with earnings development. This year's dividend proposal of €1.12 reflects a reduction of 17% compared to the previous year.
- Dividend: The company reported a decline in Q4 FY22 earnings, reflecting an increase in the proportionate share of non-tax-deductible expenses compared to taxable income and tax law changes.
- Adjusted net income declined by 4% to €253 million (-14% at constant currency). Adjusted EPS was €0.86 compared to €0.90 a year ago.
- The firm reported an 8% increase in Q4 revenues to €4.99 billion (+2% at constant currency, +2% organic)
- Health Care Services revenue grew 9% to €3.95 billion (+2% at constant currency, +3% organic). Health Care Products revenue increased by 2% to €1.05 billion (stable at constant currency, organic).
- Operating income dipped to €352 million from €449 million a year ago.
- Helen Giza, CEO of Fresenius Medical Care, said, "While we expect more headwinds than tailwinds and no governmental support for 2023, our transformation efforts and sharpened focus will enable us to accelerate the execution of our strategic initiatives and to return to earnings growth in 2024."
- Guidance: For 2023, Fresenius Medical expects revenue to grow at a low to mid-single-digit percentage rate and operating income to remain flat or decline by up to a high-single-digit percentage rate.
- Price Action: FMS shares are up 5.18% at $21.74 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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