Recent Updates
Recently added Catalysts
FMS Positive Sentiment Score: 75/100

ADHOC RELEASE Fresenius Medical Care AG & Co. KGaA raises outlook for operating income in fiscal year 2023 Bad Homburg

Key Takeaway: Fresenius Medical Care AG & Co. KGaA has upgraded its outlook for operating income in fiscal year 2023, driven by improvements following successful turnaround measures and operational efficiencies. The company anticipates a low single-digit percentage increase in operating income compared to the previous year. This change is based on the positive earnings development in the first nine months of 2023, with no changes to other elements of the fiscal outlook previously published.

Market Sentiment Analysis

POSITIVE FACTORS

  • Fresenius Medical Care raised its operating income outlook for fiscal year 2023.
  • The company's operational performance has significantly improved due to turnaround measures.
  • There is a solid business outlook for the fourth quarter of 2023.

Full Press Release Details

Fresenius Medical Care AG & Co. KGaA raises outlook for
operating income in fiscal year 2023
Bad Homburg, November 1,
2023 | Fresenius Medical Care AG & Co. KGaA ("Fresenius Medical Care" or the "Company") has decided today,
to raise the outlook for operating income in fiscal year 2023. The background to the decision are the positive effects of the turnaround
measures and the accelerated improvements in operational performance in the first nine months of 2023, as well as the solid business outlook
for the fourth quarter of 2023.
In the first nine months of the fiscal year 2023, the positive earnings
development was mainly driven by successful implementation of turnaround measures, resulting in increased operational efficiencies, savings
from the FME25 transformation program and a solid organic growth.
The Company previously expected for fiscal year 2023 operating income
to remain flat or decline by up to a low-single digit percentage rate, compared to previous year.
Fresenius Medical Care now expects for fiscal year 2023 operating income
to increase by a low single-digit percentage rate compared to previous year (2022 basis: 1,540 million).
All other elements of the outlook for the fiscal year 2023, as published
on August 2, 2023, remain unchanged.
The Company's target to achieve an operating income margin of
10 to 14% by 2025 remains unchanged, too.
Note: Operating income, as referred
to in the outlook, is on a constant currency basis and excluding special items. Special items will be provided as separate KPI ("Operating
income excluding special items") to capture effects that are unusual in nature and have not been foreseeable or not foreseeable
in size or impact at the time of giving guidance. These items are excluded to ensure comparability of the figures presented with the
Company's financial targets which have been defined excluding special items.
For FY 2022, special items included costs related to the FME25 transformation program, the impact of the war in Ukraine, the impact of
hyperinflation in Turkiye, the Humacyte investment remeasurement, and the net gain related to InterWell Health. Additionally, FY 2022
basis for Outlook 2023 and 2025 was adjusted for Provider Relief Funding by the U. S. government. For FY 2023, special items include
costs related to the FME25 transformation program, the Humacyte investment remeasurement, the costs associated with the legal conversion
and effects from legacy portfolio optimization.

Frequently Asked Questions

What is Fresenius Medical Care's new outlook for 2023?

Fresenius Medical Care has raised its operating income outlook for 2023 to increase by a low single-digit percentage.

What factors influenced the revised outlook for 2023?

The positive revision is due to turnaround measures, operational performance improvements, and solid growth.

What was the previous expectation for 2023 operating income?

The prior expectation was for operating income to remain flat or decline by a low single-digit percentage.

Will Fresenius Medical Care's future income margin target change?

No, the target for an operating income margin of 10 to 14% by 2025 remains unchanged.

What are special items in operating income?

Special items are costs from unusual events, excluded to ensure comparability in financial targets.

Last updated: Nov 1, 2023