Results of operations
As part of the portfolio optimization, the sale of the fertility services group Eugin was completed on January 31, 2024. The divestment of the majority stake in the hospital Clínica Ricardo Palma hospital in Lima, Peru, was completed on April 23, 2024. The results of operations and financial position of Fresenius Helios and of the Fresenius Group have been adjusted accordingly.
The growth rates of Fresenius Kabi have been adjusted. Adjustments relate to the hyperinflation in Argentina. The growth rates of the Fresenius Group have also been adjusted accordingly.
With the announced exit from Vamed results of operations and financial position of the Fresenius Group have been adjusted.
The results of operations are presented before special items.
Revenue1
Group revenue increased by 6% (7% in constant currency) to €21,526 million (2023: €20,307 million). Organic growth amounted to 8%. Group revenue reported was €21,833 million (2023: €21,067 million).
In detail, the revenue performance of the business segments2 was as follows:
- Fresenius Kabi increased revenue by 5% (9% in constant currency) to €8,414 million (2023: €8,009 million). Currency translation effects had a negative impact of 4%. They mainly resulted from the hyperinflation in Argentina. Organic growth amounted to 10%. The business performance was driven by the good development in the growth vectors (MedTech, Nutrition, and Biopharma) with a total growth of 10% (16% in constant currency).
Revenue in the MedTech business increased by 4% (6% in constant currency) to €1,568 million (2023: €1,510 million). Driven by positive development in most regions and in many product groups, organic growth was 6%.
Revenue in the Nutrition business increased by 4% (increased 13% in constant currency) to €2,399 million (2023: €2,304 million). The strong organic growth of 13% was attributable to the good business performance in Argentina, and the United States as well as other countries.
Revenue in the Biopharmaceuticals business increased by 68% in the 2024 fiscal year (76% in constant currency) to €611 million (2023: €363 million). This was mainly due to successful product launches in Europe and the United States as well as received milestone payments at mAbxience.
Revenue in the Pharma business (IV Drugs & Fluids) increased to €3,835 million (2023: €3,832 million). Organic growth amounted to 3%, driven by a positive development in many regions outside the United States. - Fresenius Helios increased revenue by 7% (6% in constant currency) to €12,739 million (2023: €11,952 million). The prior-year figure is adjusted for divestments. Organic revenue growth amounted to 6%.
Helios Germany’s revenue increased by 5% to €7,662 million (2023: €7,279 million). Organic growth was 5%, driven by increased reimbursement rates, case numbers, and positive treatment mix effects. Acquisitions and divestments had no impact on revenue growth.
Helios Spain’s revenue increased by 9% (8% in constant currency) to €5,077 million (2023: €4,672 million). The prior-year figure is adjusted for divestments. Organic growth was 8% and was driven by continued high demand for treatments as well as higher reimbursement rates. Furthermore, hospitals in Latin America showed pleasing development.
€ in millions |
|
2024 |
|
2023 |
|
Growth |
|
Currency translation effects |
|
Constant currency growth2 |
|
Organic growth2 |
|
Acquisitions |
|
Divestitures / others |
|
% of total revenue |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Fresenius Kabi |
|
8,414 |
|
8,009 |
|
5% |
|
-4% |
|
9% |
|
10% |
|
0% |
|
-1% |
|
39% |
||||||
Fresenius Helios |
|
12,739 |
|
11,952 |
|
7% |
|
1% |
|
6% |
|
6% |
|
0% |
|
0% |
|
59% |
||||||
Corporate/Others |
|
373 |
|
346 |
|
n.a. |
|
n.a. |
|
n.a. |
|
n.a. |
|
n.a. |
|
n.a. |
|
2% |
||||||
Total |
|
21,526 |
|
20,307 |
|
6% |
|
-1% |
|
7% |
|
8% |
|
0% |
|
-1% |
|
100% |
||||||
|
||||||||||||||||||||||||
€ in millions |
|
2024 |
|
2023 |
|
Growth |
|
Currency translation effects |
|
Constant currency growth2 |
|
Organic growth2 |
|
Acquisitions |
|
Divestitures / others |
|
% of total revenue |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
North America |
|
2,701 |
|
2,586 |
|
4% |
|
-1% |
|
5% |
|
5% |
|
0% |
|
0% |
|
13% |
||||||
Europe |
|
15,662 |
|
14,731 |
|
6% |
|
0% |
|
6% |
|
7% |
|
0% |
|
-1% |
|
73% |
||||||
Asia-Pacific |
|
1,603 |
|
1,638 |
|
-2% |
|
-1% |
|
-1% |
|
0% |
|
0% |
|
-1% |
|
7% |
||||||
Latin America |
|
1,404 |
|
1,210 |
|
16% |
|
-23% |
|
39% |
|
40% |
|
0% |
|
-1% |
|
6% |
||||||
Africa |
|
156 |
|
142 |
|
10% |
|
1% |
|
9% |
|
9% |
|
0% |
|
0% |
|
1% |
||||||
Total |
|
21,526 |
|
20,307 |
|
6% |
|
-1% |
|
7% |
|
8% |
|
0% |
|
-1% |
|
100% |
||||||
|
||||||||||||||||||||||||
Earnings structure
In 2024, Group net income3 before special items increased by 13% (14% in constant currency) to €1,749 million (2023: €1,543 million) due to an improved operating business development.
Earnings per share3 before special items increased by 13% (14% in constant currency) to €3.11 (2023: €2.74). The weighted average number of shares was 563.2 million.
Reported Group net income3 increased to €471 million (2023: -€594 million). In fiscal year 2024, expenses in connection with the transformation of Fresenius Vamed, as well as expenses for the cost and efficiency program, had a negative impact on Group net income.
Reported earnings per share3 was €0.84 (2023: -€1.05).
Group EBITDA before special items increased by 9% (9% in constant currency) to €3,614 million (2023: €3,319 million). Group EBITDA reported was €2,986 million (2023: €2,739 million).
Group EBIT before special items increased by 10% (10% in constant currency) to €2,489 million (2023: €2,266 million). Group EBIT reported was €1,782 million (2023: €1,183 million).
€ in millions |
|
2024 |
|
2023 restated |
|
2023 previous |
|---|---|---|---|---|---|---|
Revenue |
|
21,833 |
|
21,067 |
|
22,299 |
Cost of goods sold |
|
-16,455 |
|
-16,096 |
|
-17,241 |
Gross profit |
|
5,378 |
|
4,971 |
|
5,058 |
Selling, general, and administrative expenses |
|
-2,919 |
|
-3,027 |
|
-3,155 |
Other operating income and expenses |
|
-36 |
|
-100 |
|
-99 |
Research and development expenses |
|
-641 |
|
-661 |
|
-661 |
Operating income (EBIT) |
|
1,782 |
|
1,183 |
|
1,143 |
Income from the Fresenius Medical Care investment accounted for using the equity method |
|
38 |
|
-12 |
|
-12 |
Interest result |
|
-432 |
|
-398 |
|
-416 |
Income before income taxes |
|
1,388 |
|
773 |
|
715 |
Income taxes |
|
-521 |
|
-485 |
|
-477 |
Net income from continuing operations |
|
867 |
|
288 |
|
238 |
Noncontrolling interests in continuing operations |
|
-34 |
|
-110 |
|
-115 |
Net income from continuing operations attributable to shareholders of Fresenius SE & Co. KGaA |
|
901 |
|
398 |
|
353 |
|
|
|
|
|
|
|
Net income from deconsolidated Fresenius Medical Care operations under IFRS 5 |
|
n.a. |
|
-1,938 |
|
-1,938 |
Noncontrolling interests in deconsolidated Fresenius Medical Care operations under IFRS 5 |
|
n.a. |
|
-991 |
|
-991 |
Net income from deconsolidated Fresenius Medical Care operations under IFRS 5 attributable to shareholders of Fresenius SE & Co. KGaA |
|
n.a. |
|
-947 |
|
-947 |
|
|
|
|
|
|
|
Net income from discontinued operations |
|
-571 |
|
-50 |
|
n.a. |
Noncontrolling interests from discontinued operations |
|
-141 |
|
-5 |
|
n.a. |
Net income from discontinued operations attributable to shareholders of Fresenius SE & Co. KGaA |
|
-430 |
|
-45 |
|
n.a. |
|
|
|
|
|
|
|
Net income |
|
296 |
|
-1,700 |
|
-1,700 |
Noncontrolling interests in net income |
|
-175 |
|
-1,106 |
|
-1,106 |
Net income attributable to shareholders of Fresenius SE & Co. KGaA |
|
471 |
|
-594 |
|
-594 |
|
|
|
|
|
|
|
Earnings per share in € (basic and diluted) |
|
0.84 |
|
-1.05 |
|
-1.05 |
thereof based on net income from continuing operations |
|
1.60 |
|
0.71 |
|
0.63 |
thereof based on net income from deconsolidated Fresenius Medical Care operations under IFRS 5 |
|
n.a. |
|
-1.68 |
|
-1.68 |
thereof based on net income from discontinued operations |
|
-0.76 |
|
-0.08 |
|
n.a. |
in % |
|
2024 |
|
20232 |
|
2022 |
|
2021 |
|
2020 |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
EBITDA margin1 |
|
16.8 |
|
16.3 |
|
15.4 |
|
16.8 |
|
16.5 |
||||||
EBIT margin1 |
|
11.6 |
|
11.2 |
|
10.2 |
|
11.7 |
|
11.4 |
||||||
|
||||||||||||||||
EBIT1 development by business segment was as follows:
- Fresenius Kabi’s EBIT increased by 15% (16% in constant currency) to €1,319 million (2023: €1,145 million). The EBIT margin was 15.7% (2023: 14.3%) and was thus within the structural EBIT margin band.
The EBIT of the growth vectors grew by 63% (50% in constant currency) to €635 million (2023: €390 million). The EBIT margin improved to 13.9% (2023: 9.3%). This was mainly due to the excellent revenue performance and the outstanding progress of the cost-cutting program.
EBIT in the Pharma segment decreased by 3% (-2% in constant currency) to €771 million (2023: €792 million). The EBIT margin was 20.1% (2023: 20.7%). This was due to start-up costs for new production lines in the United States, which were only partially offset by cost savings. - The EBIT of Fresenius Helios increased by 8% (8% in constant currency) to €1,288 million (2023: €1,190 million). The EBIT margin was 10.1% (2022: 10.0%) and was thus within the structural EBIT margin range.
The EBIT of Helios Germany increased by 5% to €660 million (2023: €630 million). The increase was mainly due to the good revenue performance as well as the progress in the cost-cutting program and government support to compensate for energy costs. The EBIT margin was 8.6% (2022: 8.7%). - The EBIT of Helios Spain increased by 12% (11% in constant currency) to €629 million (2022: €564 million).
The increase in EBIT is attributable to the strong revenue growth and the cost savings program, which is progressing well. The EBIT margin was 12.4% (2022: 12.1%).
Development of other major items in the statement of income
Group gross profit increased by 8% (14% in constant currency) to €5,378 million (2023: €4,971 million). The gross margin increased to 24.6% (2023: 23.6%), mainly due to the Fresenius cost and efficiency program. The cost of revenue increased by 2% to €16,455 million (2023: €16,096 million). Cost of revenue as a percentage of Group revenue decreased to 75.4% (2023: 76.4%).
Selling, general, and administrative expenses consisted primarily of personnel costs, marketing and distribution costs, as well as depreciation and amortization. These expenses, excluding other operating income and expenses, decreased by 6% to €2,955 million (2023: €3,127 million), mainly due other operating income.
R & D expenses decreased by 3% to €641 million (2023: €661 million).
Depreciation and amortization was €1,125 million1 (2023: €1,053 million1). The ratio as a percentage of revenue was 5.2%1 (2023: 5.2%1). Depreciation and amortization reported was €1,204 million (2023: €1,556 million).
Group personnel costs increased to €9,586 million (2023: €9,229 million). The reported personnel cost ratio was 43.9% (2023: 43.8%).
Income from investments accounted for using the equity method was €38 million in fiscal year 2024 (2023: -€12 million).
The Group financial result1 was -€433 million (2023: -€396 million), mainly driven by refinancing activities in an environment of increasing interest rates. The Group financial result reported was -€432 million (2023: -€398 million).
The Group tax rate1 was 25.9% (2023: 27.0%). The Group tax rate reported was 37.5% (2023: 62.7%) mainly due to the negative result of Fresenius Vamed, for which no deferred tax assets could be recognized.
Noncontrolling interests1 were -€63 million (2023: -€66 million) and mainly relates to the discontinued business segment Fresenius Vamed.
Net income from discontinued operations attributable to shareholders of Fresenius SE & Co. KGaA was -€430 million (2023: -€45 million) and mainly relate to the discontinued operation Fresenius Vamed.
Reconciliation Fresenius Group
To present the underlying operational business performance and in order to compare the results with the scope of the guidance provided for fiscal year 2024, the respective key figures are presented before special items.
Consolidated results for FY/24 as well as for FY/23 include special items. These concern:
- Revaluations of biosimilars contingent purchase price liabilities (2023)
- Expenses associated with the Fresenius cost and efficiency program
- Transaction costs mAbxience, Ivenix (2023)
- Legal form conversion costs Fresenius Medical Care
- Legacy portfolio adjustments
- IT transformation (2024)
- Special items at Fresenius Medical Care
- Impact of PPA equity method Fresenius Medical Care
- Divestitures Eugin and clinic Peru
- Vamed transformation and Vamed exit
- Discontinued operations Vamed
The special items shown within the reconciliation tables are reported in the Corporate/Other segment.
€ in millions |
|
2024 |
|
2023 restated |
|
Growth rate |
|
Growth rate in constant currency |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue reported (after special items) |
|
21,833 |
|
21,067 |
|
4% |
|
5% |
||||||||
Divestitures Eugin and clinic Peru |
|
-30 |
|
-368 |
|
|
|
|
||||||||
Vamed exit |
|
-277 |
|
-392 |
|
|
|
|
||||||||
Revenue (before special items) |
|
21,526 |
|
20,307 |
|
6% |
|
7% |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
EBIT reported (after special items) |
|
1,782 |
|
1,183 |
|
51% |
|
51% |
||||||||
Divestitures Eugin and clinic Peru |
|
-5 |
|
-42 |
|
|
|
|
||||||||
Revaluations of biosimilars contingent purchase price liabilities |
|
– |
|
-29 |
|
|
|
|
||||||||
Expenses associated with the Fresenius cost and efficiency program |
|
144 |
|
221 |
|
|
|
|
||||||||
Transaction costs of mAbxience, Ivenix |
|
– |
|
36 |
|
|
|
|
||||||||
Legal form conversion costs Fresenius Medical Care |
|
4 |
|
17 |
|
|
|
|
||||||||
Legacy portfolio adjustments |
|
51 |
|
320 |
|
|
|
|
||||||||
IT transformation |
|
40 |
|
– |
|
|
|
|
||||||||
Vamed transformation / exit |
|
473 |
|
560 |
|
|
|
|
||||||||
EBIT (before special items) |
|
2,489 |
|
2,266 |
|
10% |
|
10% |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net income reported (after special items)1 |
|
471 |
|
-594 |
|
179% |
|
180% |
||||||||
Divestitures Eugin and clinic Peru |
|
-1 |
|
-9 |
|
|
|
|
||||||||
Revaluations of biosimilars contingent purchase price liabilities |
|
– |
|
-24 |
|
|
|
|
||||||||
Expenses associated with the Fresenius cost and efficiency program |
|
115 |
|
171 |
|
|
|
|
||||||||
Transaction costs of mAbxience, Ivenix |
|
– |
|
34 |
|
|
|
|
||||||||
Legal form conversion costs Fresenius Medical Care |
|
3 |
|
19 |
|
|
|
|
||||||||
Legacy portfolio adjustments |
|
55 |
|
271 |
|
|
|
|
||||||||
IT transformation |
|
28 |
|
– |
|
|
|
|
||||||||
Vamed transformation / exit |
|
398 |
|
428 |
|
|
|
|
||||||||
Discontinued operations Vamed |
|
430 |
|
45 |
|
|
|
|
||||||||
Special Items Fresenius Medical Care |
|
117 |
|
1,197 |
|
|
|
|
||||||||
Impact of PPA equity method Fresenius Medical Care |
|
133 |
|
5 |
|
|
|
|
||||||||
Net income (before special items)1 |
|
1,749 |
|
1,543 |
|
13% |
|
14% |
||||||||
|
||||||||||||||||
1 Before Special items
2 The following description of revenue relates to the respective external revenue of the business segments. Consolidation effects and corporate entities are not taken into account. Therefore, aggregation to total Group revenue is not possible.
3 Net income attributable to the shareholders of Fresenius SE & Co. KGaA
Organic growth rate adjusted for accounting effects related to Argentina hyperinflation.
Growth rates adjusted for Argentina hyperinflation and the divestment of the fertility services group Eugin and the hospital stake in Peru.
For a detailed overview of special items please see the reconciliation table.