Dialysis Player Fresenius Medical's Q4 Sales Hold Steady: Details

Tuesday, Fresenius Medical Care AG FMS reported fourth-quarter 2023 revenue of €4.9 billion ($5.37 billion, almost in line with the consensus of $5.35 billion) (+7% at constant currency, +3% organic), which remained flat Y/Y. 

Care Delivery revenue remained flat at €3.9 billion (+8% at constant currency, +2% organic). Care Enablement revenue declined slightly by 1% to €1.4 billion (+5% at constant currency, +6% organic). 

Higher product sales and higher average prices partly offset the negative exchange rate effects.

Adjusted EPS increased 4% to €0.88 (+8% at constant currency). Adjusted EPADS reached $0.47, beating the consensus of $0.32.

As of December 31, 2023, Fresenius Medical Care treated 332,548 patients in 3,925 dialysis clinics worldwide.

In addition, the company adheres to its dividend policy of developing dividends in line with the development of net income, excluding special items. Consequently, the dividend proposal for the fiscal year 2023 of €1.19 per share corresponds to an increase of 6% compared to the prior year’s dividend.

Guidance: In 2024, Fresenius Medical Care expects revenue to grow by a low- to mid-single-digit percent rate compared to fiscal year 2023 sales of €19.5 billion.

The company expects operating income to grow by mid- to high-teens percent. The company reconfirms its targets to achieve an operating income margin of 10%-14% by 2025.

Citing Barclays analyst Reuters highlighted that Fresenius Medical Care forecasts fiscal year 2024 patient volume growth of 0.5%-2% compared to its rival’s DaVita Inc DVA growth expectations of 1%-2%.

Barclays analysts reported a slight decrease in Fresenius Medical Care’s patient volumes from October to December compared to the previous quarter. This decline was attributed to missed treatments during the Christmas period.

Fresenius Medical Care said it sees missed treatments partly continuing in the first quarter. “We always expect Q1 to be a bit lower, but that will ramp up during the year,” Reuters noted, citing Fresenius Medical Care CEO Helen Giza.

Giza said that only about 5% of FMC patients are using GLP-1 drugs, a number that is rising at “a very, very small, small rate.”

Price Action: FMS shares are down 2.96% at $20.49 on the last check Tuesday.