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Dec 31, 2024
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Fresenius Medical Care Q4 2024 Earnings Report
Fresenius Medical Care reported modest revenue growth and a significant decline in net income in Q4 2024.
Key Takeaways
Fresenius Medical Care posted Q4 2024 revenue of €5.09 billion, reflecting a 2% year-over-year increase. Operating income fell 39% to €259 million due to portfolio optimization impacts, while net income dropped 64% to €67 million. The Care Enablement segment drove growth, increasing revenue by 11%, while Care Delivery revenue declined by 1% due to divestitures. Free cash flow improved by 25% to €599 million, supporting deleveraging efforts.
Total revenue grew 2% year-over-year to €5.09 billion, led by the Care Enablement segment.
Operating income declined 39% to €259 million due to one-time portfolio optimization effects.
Net income dropped 64% to €67 million, impacted by lower operating profit and restructuring costs.
Free cash flow increased by 25% to €599 million, supporting financial deleveraging efforts.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Fresenius Medical Care expects low single-digit revenue growth and high-teens to high-twenties percent earnings growth in 2025.
Positive Outlook
- Revenue growth expected to be positive in the low-single-digit range.
- Operating income projected to grow in the high-teens to high-twenties percent range.
- FME25 transformation program savings target raised to €750 million.
- Care Enablement expected to continue strong volume growth momentum.
- Further deleveraging expected with continued strong cash generation.
Challenges Ahead
- Portfolio optimization may continue to weigh on short-term revenue growth.
- Higher personnel and operational costs could pressure operating margins.
- Unfavorable foreign exchange impacts may create headwinds on earnings.
- Ongoing restructuring costs associated with transformation initiatives.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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