Fresenius Action Forum

Fresenius Q32024 $FRE (-0,26 %)

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.

Earnings summary this morning (05.11.) 👇🏼

Krones | $KRN (+0,5 %) increases both sales and operating profit in the third quarter, with EBITDA growing by almost 22% to almost 135 million euros. The company confirms its forecast and benefits from improved material availability.

Uniper | $UN01 generates a profit of just under EUR 1.3 billion in the first nine months of 2024, but significantly less than in the previous year. The energy group confirms its outlook for the year with an expected net profit of EUR 1.1 to 1.5 billion.

Hugo Boss | $BOSS (-3,01 %) recorded a slight increase in sales of 1% to 1.03 billion euros in the third quarter despite a slump in consumption in China, but EBIT fell by 7% to 95 million euros. The Group confirms its annual targets despite higher sales and marketing costs.

Fraport | $FRA (+2,15 %) is lowering its expectations for passenger numbers in 2024 to the lower end of the range of 61 million passengers and is targeting EBITDA in the middle of the previous forecast of 1.26 to 1.36 billion euros. In the summer quarter, revenue rose by 11%, while operating profit only increased by 1%.

Fresenius Medical Care | $FRE (-0,26 %) increases operating profit in the third quarter by 43 % to 463 million euros, which is attributable to successful cost savings. The company raises its forecast for adjusted operating profit, but expects a slight decline in sales.

Redcare Pharmacy | $RDC (+9,53 %) reports a decline in adjusted EBITDA to 11.4 million euros in the third quarter and increases the loss for the first nine months to 20.1 million euros. The company confirms adjusted annual targets and expects a lower operating profit due to higher advertising expenditure for the e-prescription.

DHL | $DHL (+0,1 %) reports a decline in profit of almost 7% to 751 million euros for the third quarter and lowers its forecast for operating profit in 2024 and 2026. Revenue increases by 6% to 20.6 billion euros, while EBIT remains stable at 1.4 billion euros.

Norma Group | $NOEJ (-2,65 %) is revising its annual targets downwards and now expects sales of around EUR 1.2 billion and an adjusted EBIT margin of around 8.0 percent due to a challenging market environment. In the third quarter, the company recorded a decline in sales of 7.9% to 273.6 million euros and a drop in profit to 6.1 million euros.

Nintendo | $7974 (-0,11 %)
Q2 24 Earnings:

- Net Income 27.70B Yen (est 49.4B Yen)

- Sees FY Oper Income 360.00B Yen, Saw 400.00B Yen

- Sees FY Total Switch Sales 12.50M Units, Saw 13.50M

Adecco | $ADEN (-2,78 %) 24 Earnings:

- Net Income EU99.0M (est EU86.8M)

- Rev EU5.70B (est EU5.84B)

- Adj EBITA EU186.0M (est EU195M)

- Plans To Repay EU430M Debt Maturing In Dec 24

22.10.2024

SAP's quarterly figures are better than expected + SHARES IN THE FOCUS: Fresenius and FMC higher - Confidence ahead of quarterly figures + Jefferies lowers Basler to 'Hold' - Target almost halved to 7 euros +

SAP $SAP (-0,4 %) unexpectedly increases adjusted pre-tax profit in the third quarter by 27% to 2.24 billion euros and raises its forecast for the year. The SAP share rises by 4% in after-hours trading.

Investors in Fresenius $FRE (-0,26 %) and Fresenius Medical Care $FME (+1,22 %) seem to be gaining confidence ahead of the quarterly figures due at the beginning of November. In the early afternoon, Fresenius shares, which are listed in the Dax, were the best index stock, gaining 1.4 percent in an attempt to shake off the somewhat weaker trend since mid-September. Fresenius holding FMC rose by 2.1 percent in the MDax, but the shares remained just below their interim high from the beginning of October. Above that, they would cost as much as they last did in mid-June. The third quarter is usually the weakest for the medical group Fresenius, but the management should spread optimism, wrote Berenberg analyst Victoria Lambert. As recently as mid-October, the company was confident of achieving the upper end of the targeted range for the operating result (EBIT) for the full year. According to the expert, the growth in treatment figures at dialysis provider FMC should finally have turned positive in the third quarter and offset the effects of the mortality rate.

The analyst firm Jefferies has Basler $BSL (-3,73 %) from "buy" to "hold" after the figures and almost halved its target price from 13.50 to 7 euros. The machine vision specialist surprised with a comparatively significant weakening of the order situation, wrote analyst Martin Comtesse in a study published on Tuesday. This was preceded by three quarters of improvements. A profit warning, restructuring and management changes were the consequences of the third quarter.

Tuesday: Stock market dates, economic data, quarterly figures

ex-dividend of individual stocks

Dell USD 0.45

Quarterly figures / company dates USA / Asia

12:30 3M | GE Aerospace, | General Motors | RTX quarterly figures

13:00 Philip Morris | Verizon Communications quarterly figures

13:30 Lockheed Martin quarterly figures

22:00 Texas Instruments quarterly figures

Untimed: Paccar quarterly figures

Quarterly figures / Company dates Europe

03:00 Logitech quarterly figures

14:0 Logitech Call

18:00 Flatexdegiro | Vivendi quarterly figures | LOreal SA, sales 3Q

19:00 Deutsche Börse quarterly figures

Untimed: Givaudan SA: Start of Investor Day (until 23.10.) | Randstad quarterly figures | Tecan: Capital Markets Day

Economic data

11:00 EU: Public finances (2nd publication) 2023 | Government debt 2Q

11:00 DE: German Savings Banks and Giro Association (DSGV), Pk on the Wealth Barometer 2024

14:30 US: Philadelphia Fed services index 10/24

15:00 USInternational Monetary Fund (IMF), World Economic Outlook

15:15 US: Governing Council member Nagel, speech at Harvard University

16:00 US: Richmond Fed manufacturing index 10/24

16:00 US: ECB President Lagarde, interview with Bloomberg TV

16:30 US: US Treasury Secretary Yellen, press conference at the start of the IMF and World Bank Annual Meetings

17:00 US: ECB Chief Economist Lane, interview at New York Fed central banking seminar

01.10.2024

VW issues another profit warning + Fresenius relies on organic growth + Current share price targets

The renewed VW profit warning $VOW (-2,5 %) pushed the shares down by 2.0 percent. Volkswagen is facing major challenges, including restructuring measures and margin pressure in both Europe and China, Metzler analysts noted. They also see the possibility of a considerable dividend cut. In the wake of the Volkswagen profit warning, major shareholder Porsche SE also had to withdraw its outlook for the year as a whole. The share lost 2.9 percent, Porsche AG $P911 (-1,22 %) fell by 4.3 percent, Mercedes-Benz $MBG (-3,33 %) and BMW $BMW (-3,91 %) lost 2.4 percent each.

The CEO of the healthcare group Fresenius SE $FRE (-0,26 %) Michael Sen, is focusing primarily on organic growth for the future. Sen did not rule out takeovers of competitors and start-ups in principle. "However, we can grow very well organically with our current portfolio - in other words, without investing a lot of capital. Because we are simultaneously deleveraging," said Sen in an interview with the Frankfurter Allgemeine Zeitung. Fresenius has not seen the organic growth rates in sales that it has seen in the last one and a half years, almost two years.

BARCLAYS RAISES TARGET FOR LUFTHANSA $LHA (+0,59 %) TO EUR 9.50 (7.50) - 'OVERWEIGHT'

JPMORGAN CUTS MUNICH RE $MUV2 (-0,5 %) TO 'NEUTRAL' (OVERWEIGHT) - TARGET 520 EUR

Stock market dates, economic data, quarterly figures

ex-dividend of individual stocks

Fortum EUR 0.57

Telephone L.M.Ericsson (B) SEK 1.35

Air Products & Chemicals USD 1.77

State Street 0.76 USD

Quarterly figures / company dates USA / Asia

22:15 Nike Quarterly figures

Quarterly figures / company dates Europe

13:00 Traton Capital Markets Day | KPN Extraordinary General Meeting

19:00 Nokia Extraordinary General Meeting

No time specified: Biontech Innovation Series: AI Day

Stock exchange holiday in Hong Kong, China and South Korea

Economic data

• 09:45 IT: Purchasing Managers' Index/PMI manufacturing September FORECAST: 49.0 previous: 49.4
• 09:50 FR: Purchasing Managers' Index/PMI Manufacturing (2nd release) September FORECAST: 44.0 1st release: 44.0 PREV: 43.9
• 09:55 DE: Purchasing Managers' Index/PMI Manufacturing (2nd release) September FORECAST: 40.3 1st release: 40.3 previous: 42.4
• 10:00 EU: Purchasing Managers' Index/PMI manufacturing Eurozone (2nd release) September FORECAST: 44.8 1st release: 44.8 Previous: 45.8
• 10:30 UK: Purchasing Managers' Index/PMI Manufacturing (2nd release) September FORECAST: 51.5 1st release: 51.5 previous: 52.5
• 11:00 EU: Euro-zone Consumer Prices (flash estimate) September Euro-zone PROGNOSE: 0.0%gg month/+1.8% yoy previous: +0.1%gg month/+2.2% yoy Core (excl. energy, food, alcohol, tobacco) PROGNOSE: +0.2%gg month/+2.8% yoy previous: +0.3%gg month/+2.8% yoy
• 15:45 US: Purchasing Managers' Index/PMI manufacturing (2nd release) September PROGNOSIS: n/a 1st release: 47.0 previous: 47.9
• 16:00 US: Construction Spending August PROGNOSE: +0.2% yoy previous: -0.3% yoy | ISM Manufacturing Index September FORECAST: 47.2 points previous: 47.2 points

+++ Earnings summary this morning, 31.07. +++

Adidas $ADS (-1,81 %) achieved sales of €5.8 billion in the second quarter (previous year: €5.3 billion), EBIT of €346 million (previous year: €176 million) and net profit from continuing operations of €211 million (previous year: €96 million).

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KRONES $KRN (+0,5 %) achieves revenue of €1.31 billion in Q2 (previous year: +16.7%, analyst forecast: €1.295 billion); EBITDA of €130.8 million (previous year: +22.8%, forecast: €130 million) and net profit of €69.2 million (previous year: +19.5%). Outlook for 2024 confirmed.

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Auto1 Group $AG1 (-2,32 %) achieved sales of €1.52 billion in the second quarter (previous year: €1.34 billion, analyst forecast: €1.45 billion), sales of 166,292 vehicles (previous year: €141,682 vehicles); gross profit of €173.3 million (previous year: €127.8 million) and EBITDA (adjusted) of €20.7 million (previous year: -€14.8 million, forecast: €9.7 million).

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TEAMVIEWER $TMV (+2,46 %) achieved revenue of €164.1 million in the second quarter (previous year: €154.2 million, forecast: €163.3 million), EBITDA (adjusted) of €67.5 million (previous year: €63.8 million, forecast: €64.3 million) and net profit of €26.5 million (previous year: €34.0 million). Outlook for 2024 confirmed.

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Fresenius $FRE (-0,26 %) achieved adjusted sales of €5.41 billion (previous year: €5.1 billion, forecast: €5.27 billion), EBIT (adjusted) of €660 million (previous year: €571 million, forecast: €626 million) and adjusted net income after minority interests of €457 million (previous year: €393 million, forecast: €404 million) in the second quarter. Outlook confirmed.

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Siemens Healthineers $SHL (-1,29 %) achieved sales of €5.4 billion in the third quarter (previous year: €5.2 billion, forecast: €5.5 billion), EBIT (adjusted) of €825 million (previous year: €758 million, forecast: €856 million) and net profit of €472 million (previous year: €451 million). Outlook confirmed.

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Nemetschek $NEM (-0,52 %) confirms key figures for Q2 with revenue of €227.7m, EBITDA of €61.4m and outlook for 2024.

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Lufthansa $LHA (+0,59 %) achieves revenue of €10.01bn (previous year: €9.38bn), EBIT (adjusted) of €686m (previous year: €1.1bn) and net profit of €469m (previous year: €881m) in Q2. Outlook confirmed on July 12.

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KION $KGX (-3,27 %) achieved revenue of €2.9 billion in the second quarter (previous year: €2.8 billion, forecast: €2.9 billion), EBIT (adjusted) of €220.3 million (previous year: €192.3 million, forecast: €218 million) and a net profit of €70.7 million (previous year: €72.8 million).

After today's figures from $SAP (-0,4 %) I cashed out and took 85% with me. I will continue to reduce my share in Germany and shift into my ETFs and Bitcoin next. $BAS (-5,27 %) and $FRE (-0,26 %) out.

Hello everyone,

I would like to hear your opinion on my portfolio. I am 37 years old and married. I have an apartment in Munich with my wife. My monthly savings plans are €640 each for the three ETFs ( $IWDA, $EXXT (+0,75 %) , $VYM (+1,3 %) ).

I'm thinking of clearing out smaller positions and low performers like $BAYN (-1,69 %) , $FRE (-0,26 %) and $INRG (-2,09 %) out. Would I rather use the money to add to good performers or reduce the price of possible turnarounds ($NKE, $SBUX (+2,49 %) )? I look forward to your opinions.

Part 2 of 4: For vacation hedging stop lots mixed up and limit entered.

$FRE (-0,26 %) and $FME (+1,22 %) were bought a few years ago when the share price fell from almost 100 to 50/60.

Buy at > -30% and invest in DAX companies that also pay dividends.

Result after years of tears, investment and share price halving as well as dividend cut and exclusion from the DAX now 40.

Loss of almost 50%

I regrouped and sold 2 shares. $FRE (-0,26 %) and $CHD (+3,24 %) sold. $FRE (-0,26 %) The share price did not move at all and the dividend appears to have been canceled. With $CHD (+3,24 %) I made a return of just under 20%. I only had €150-200 in the portfolio for both, so nothing earth-shattering

Got from it $AMZN (-0,02 %) and $MSFT (+0,15 %) topped up.

But didn't want to buy too much, as both are in the $XDWL (+0,79 %) are inside.

I'm happy so far. Haven't done anything for almost 1.5-2 years now. That's why it was now time $FRE (-0,26 %) to sell.

I'm still thinking about what to do with $NET (+3,83 %) un $SQ (+6,29 %) do. I was annoyed not to sell at the ATH for both. At least with $NET (+3,83 %) 25% up (was already at over 120% 🥲)

In future, however, I will buy more dividend stocks (also a reason to choose the distributing MSCI)

Cancellation of dividend at Fresenius ($FRE (-0,26 %))

0€ dividend in 2024?!

After Fresenius did not increase the dividend in 2023 for the first time since 1994 (!), the dividend will be suspended in 2024.

At least as a one-off. This is because the dividend cancellation in 2024 is indeed coming, but is a special effect due to government aid. This is comparable to the dividends frozen in 2021 by US banks such as $MS (+1,35 %) or $JPM (+0,97 %)which were also unable to pay out dividends as planned due to regulatory requirements.

Fresenius has now also published an announcement on its dividend policy (see image). The last section is interesting. It states that Fresenius will continue its will continue its current dividend policy.

What does that mean? The second image shows an excerpt from the current dividend policy, which was adjusted in 2023. According to this, Fresenius will probably distribute dividends again from 2025 and also increase the dividends increase dividends regularly. However, according to the updated strategy it is also possible to maintain the same level of dividendif earnings per share are worse.

If any of you are considering selling because of the dividend cut, it may be worth overlooking this one-off effect. However, Fresenius also has many operational problems that could justify an exit. I am holding on to my investment for the time being.