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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.
Fresenius Medical Care
Fresenius Medical Care
Fresenius Medical Care Revenue by Segment
Fresenius Medical Care Revenue by Geographic Location
Revenue by Segment
Care Delivery Revenue
CapyFin.comCare Enablement Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comInternational Revenue
CapyFin.com 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.
- Potential uncertainties in reimbursement rates and regulatory changes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income