In This Article:
-
Organic Revenue Growth: 5% with contributions from both Care Delivery and Care Enablement.
-
Operating Income Growth: 11% increase, consistent with the expected phasing of the full year outlook.
-
Net Leverage Ratio: Improved to 2.8x, below the self-imposed target range.
-
Care Enablement Margin: Improved to 8.3%, entering the target margin band of 8% to 12%.
-
Same Market Treatment Growth (U.S.): Stable, with a 0.5% plus expected growth for 2025.
-
Same Market Treatment Growth (International): Accelerated to 2.5%.
-
Lives Under Management: Increased from around 130,000 to around 148,000 by the end of March.
-
Special Items Impact: Negatively affected group operating income by EUR126 million.
-
Operating Cash Flow: Increased by 28% against last year's quarter due to improved operating working capital.
-
Bond Issuance: Placed 2 bond tranches with an aggregate volume of EUR1.1 billion.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Fresenius Medical Care AG (NYSE:FMS) reported strong organic revenue growth of 5% in Q1 2025, driven by both Care Delivery and Care Enablement segments.
-
The FME25 transformation program delivered EUR68 million in additional sustainable savings, contributing to the company's financial health.
-
Operating income grew by 11%, positioning the company well for future quarters.
-
The net leverage ratio improved to 2.8x, below the self-imposed target range, indicating strong financial discipline.
-
Care Enablement segment achieved a margin of 8.3%, entering its target margin band of 8% to 12% for the first time.
Negative Points
-
The severe flu season led to increased missed treatments, impacting same market treatment growth in the U.S.
-
Divestitures negatively impacted revenue development by 260 basis points.
-
Special items, including costs related to portfolio optimization and the FME25 transformation program, negatively affected group operating income by EUR126 million.
-
Labor and inflation costs offset some of the earnings developments in the Care Delivery segment.
-
The company faced a headwind from one less dialysis day in the quarter, affecting absolute volume development and utilization.
Q & A Highlights
Q: What are you seeing in April trading in the U.S., and how does this impact your confidence in the full-year guidance? A: The flu season hit hard in February and March, but we are encouraged by the underlying referrals, which are a strong leading indicator. We expect the mortality effect to show with a 6- to 8-week lag. We are confident in our positive trajectory and maintaining our 0.5% growth guidance for the year. - Helen Giza, CEO