Fresenius Medical Care AG’s (NYSE:FMS) Q2 adjusted operating income increased 41% Y/Y to €401 million. The adjusted net income jumped 51% to €175 million.
Revenue increased by 1% to €4.83 billion in the second quarter (+6% at constant currency, +6% organic).
Care Delivery revenue increased by 1% to €3.87 billion (+6% at constant currency, +6% organic).
In parallel, the company continuously executes its operational efficiency and turnaround plans. The FME25 transformation program delivered €75 million in additional savings in the second quarter.
Fresenius Medical Care is fully on track to achieve sustainable savings of €250-300 million by year-end 2023 and €650 million by year-end 2025.
“As expected, we have seen a stabilization of the labor market and the inflationary environment. Our measures to increase productivity, supported by the targeted clinic closures, are driving a positive development. This gives us the confidence to narrow our operating income guidance range to the upper part for the year,” said Helen Giza, CEO of Fresenius Medical Care.
Guidance: Fresenius Medical Care expects 2023 operating income to remain flat or slip by up to a low-single-digit percentage. The company had previously projected earnings to remain flat or decline by up to a high-single-digit percentage rate.
The company’s target to achieve an operating income margin of 10%-14% by 2025 remains unchanged.
Price Action: FMS shares are down 2.01% at $25.31 on the last check Wednesday.
