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Fresenius Q32024 $FRE (-0,84 %)

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Financial performance:

  • Sales: Fresenius achieved sales of €5.3 billion in the third quarter of 2024, representing strong organic growth of 9%.
  • EBIT: EBIT amounted to €552 million in the third quarter, up 9% year-on-year.
  • Net profit: Excluding FMC, net profit reached 312 million euros, an increase of 7%.



Key points of the income statement:

  • Sales growth was mainly driven by the Kabi and Helios segments, with EBIT growth indicating operational improvements.


Cash flow overview:

  • Operating cash flow (OCF): OCF increased to EUR 763 million in the third quarter of 2024, compared to EUR 603 million in the prior-year quarter.
  • Free cash flow (FCF): FCF improved significantly and reached 623 million euros, compared to just 102 million euros in the previous year.


Key figures and profitability metrics:

  • Net debt/EBITDA: The leverage ratio fell to 3.24x, a decrease of 52 basis points since the end of 2023.
  • Interest expenses: Interest expenses increased to 116 million euros in the third quarter of 2024, compared to 102 million euros in the same quarter last year.
  • Tax rate: The effective tax rate was 24.5% in the third quarter.


Segment development:

  • Kabi: Sales increased by 8%, excluding the impact of currency fluctuations.
  • Helios: The Helios segment recorded sales growth of 5 %.


Competitive position:

  • Fresenius is implementing its strategy #FutureFresenius to optimize the portfolio and further improve the operating model.


Management forecasts and assessments:

  • The company has raised its guidance for the financial year 2024 and now expects to reach the upper end of the EBIT growth range.
  • Management remains optimistic of achieving mid to high single-digit organic sales growth.


Risks and opportunities:

  • Risks: The economic weakness in China and regulatory changes pose challenges.
  • Opportunities: Biopharma continues to show momentum and contribute positively to EBIT.


Summary of results:


Strengths:

  • Strong organic sales growth of 9%.
  • Significant improvement in free cash flow.
  • Operational improvements led to EBIT growth.
  • Successful deleveraging measures reduced the debt ratio.
  • Positive forecast adjustment for the 2024 financial year.


  • Challenges:
  • Continued weakness in the Chinese market.
  • Higher interest expenses burden profitability.
  • Seasonal weaknesses in the hospital business impacted Q3 results.
  • Regulatory hurdles in the USA make capacity expansions more difficult.
  • Possible impact of elective surgery on parts of the portfolio.
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