Fresenius Medical Care Q4 Profit Increases; Targets Return To Earnings Growth In 2022

Fresenius Medical Care AG & Co. KGaA (FMS) reported that its fourth quarter net income attributable to shareholders of the company increased 29% year-over-year to 229 million euros, while quarterly net income was up 23% at constant currency. Basic earnings per share increased 29% to 0.78 euros from the prior year.

But quarterly net income, excluding special items, declined by 29% to 263 million euros or down 32% at constant currency, mainly due to the mentioned negative effects on operating income.

Earnings per share, excluding special items, declined by 29% to 0.90 euros from the previous year.

Operating income decreased by 3% to 449 million euros in the fourth quarter. The decline was mainly due to a remeasurement effect on the fair value of investments, higher labor costs, the adverse COVID-19-related net effects and inflationary materials cost increases. These effects were only slightly mitigated by an improved U.S. payor mix, in particular due to an increased number of patients with Medicare Advantage coverage.

Revenue for the fourth quarter increased 6% year-over-year to 4.65 billion euros, while it was up 3% at constant currency, or 2% organic basis.

The company proposes a dividend of 1.35 euros per share to the Annual General Meeting in May 2022.

The company targets to return to earnings growth this year, despite the ongoing impact of the pandemic and an increasingly inflationary cost environment.

Fresenius Medical Care expects revenue and net income to grow at low to mid-single digit percentage rates in fiscal year 2022.

Fresenius Medical Care confirmed its mid-term targets that are based on the company's mid-term strategy. Until 2025 the company expects compounded annual average increases in the mid-single-digit percentage range for revenue and in the high-single-digit percentage range for net income. Fresenius Medical Care expects FME25 savings to mitigate the ongoing negative effects of COVID-19.

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