Healthcare Conglomerate - Fresenius surprises with strong quarterly figures
Fresenius' medical business and hospital operations continue to run smoothly. The company is now more optimistic for the current year and is targeting the upper half of the range for its 2024 full-year earnings goal, as announced by the DAX company in Bad Homburg. Business with clinical nutrition products, infusions, and pharmaceuticals is developing much better than previously expected.
In the second quarter, the company's organic revenue, excluding currency effects and acquisitions, increased by 8% to €5.4 billion. Adjusted operating profit (EBIT) before interest and taxes rose by 15% to €660 million. Adjusted net income attributable to shareholders increased by 15% year-over-year to €457 million. With these figures, Fresenius exceeded analysts' estimates.
For the full year, Fresenius' management still expects organic revenue growth of between 4% and 7%. Adjusted operating profit before interest and taxes is expected to increase by 6% to 10% in constant currency. Fresenius is focusing on its hospital business, particularly around Germany's largest hospital group Helios, and the generic drug manufacturer Kabi.
The strong performance in the second quarter further underscores Fresenius' competence in its medical field. With the company's emphasis on its hospital business and generic drug manufacturing, the medical sector continues to be a significant focus for Fresenius' growth strategies.
