Fresenius Medical Care AG
Fresenius Medical Care posts accelerated earnings growth in the 2nd quarter
DGAP-News: Fresenius Medical Care AG & Co. KGaA / Key word(s): Quarter Results/Half Year Results – Group revenue +5% (+7% at constant currency), driven by very good results in health care services
– Considerable net income growth of 22%, supported by lower costs for health care supplies and Global Efficiency Program – Strong operating performance in North America: revenue +8%, operating income (EBIT) +20% – Care Coordination maintains significant revenue growth (+21%) and continues to invest in infrastructure – Fresenius Medical Care on track to achieve full year guidance Key figures – second quarter/first half 2016: Second quarter Growth yoy First half Growth yoy Revenue & earnings Net revenue in the first half of 2016 increased by 6% (health care services revenue +7%/+9% at constant currency; dialysis products revenue +1%/+4% at constant currency). In the second quarter, operating income (EBIT) increased by 17% to $641 million. The operating income margin increased to 14.5%, due to strong operating performance across all segments. The increase in North America was supported by lower costs for health care supplies and a favorable impact from higher volume with commercial payors. This was partially offset by higher personnel expenses related to dialysis services in the North America segment. The increase in the Asia-Pacific segment was driven by favorable exchange rate effects and higher business growth. For the first half of 2016, operating income (EBIT) increased by 12% to $1,181 million. Net interest expense in the second quarter remained at the previous year’s level ($102 million). For the first half of 2016, net interest expense increased by 2% to $208 million. Income tax expense increased to $169 million in the second quarter. This translates into an effective tax rate of 31.3%, an increase of 90 basis points compared to Q2 2015 (30.4%). This increase was mainly driven by a relative to income before taxes lower increase of tax-free income attributable to noncontrolling interests. For the first half of 2016, tax expense increased to $306 million, translating into an effective tax rate of 31.5% (-70 basis points). Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 22% to $294 million in the second quarter, mainly driven by the strong performance of the North America segment. Based on approximately 305.5 million shares (weighted average number of shares outstanding), basic earnings per share (EPS) increased accordingly to $0.96 (+22%), compared to $0.79 in the previous year’s second quarter. For the first half of 2016, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increasead by 16% to $522 million. Segment development For the first half of 2016, North America revenue increased by 9% to $6,212 million. Operating income increased by 24% to $949 million. EMEA revenue increased by 1% to $676 million in the second quarter of 2016 (+3% at constant currency). Health care services revenue for the EMEA segment increased by 7% (+9% at constant curreny) to $331 million. This was the result of contributions from acquisitions (7%) and organic revenue growth (3%), partially offset by the negative effect of exchange rate fluctuations (2%) and the effect of closed or sold clinics (1%). Dialysis treatments increased by 9% in the second quarter. Dialysis products revenue decreased by 4% (-3% at constant currency) to $345 million. The decrease was driven by lower sales of dialyzers, machines, renal pharmaceuticals and bloodlines, partially offset by higher sales of products for acute care treatments and peritoneal dialysis products. Operating income in the EMEA segment increased by 4% to $139 million in the second quarter, due to favorable foreign exchange effects and a positive impact from manufacturing, driven by higher volumes and production efficiencies. The operating income margin increased to 20.6% (+50 basis points). For the first half of 2016, EMEA revenue increased by 1% to $1,307 million and operating income decreased by 2% to $269 million. Asia-Pacific revenue grew by 5% (+6% at constant currency) to $397 million in the second quarter. The region recorded $177 million in health care services revenue, based on an increase of 4% in dialysis treatments. With a 4% growth in revenue to $220 million (+9% at constant currency), the product business showed a very good sales performance across the entire dialysis products range. Operating income showed a strong increase (+12%) to $75 million. The operating income margin increased to 18.9% (+110 basis points). This was driven by favorable foreign currency effects and the positive underlying business performance, in particular in China and India. For the first half of 2016, Asia-Pacific revenue grew by 6% to $771 million (+8% at constant currency) and operating income decreased by 8% to $140 million. Latin America delivered revenue of $175 million, a decrease of 14% and an improvement of 9% at constant currency. Health care services revenue decreased by 17% to $125 million (+9% at constant currency) as a result of negative foreign currency effects and the effect of closed or sold clinics (mainly in Venezuela). Dialysis treatments decreased accordingly by 7% in the second quarter. This was partially offset by the strong organic revenue growth of 19%. Dialysis products revenue decreased by 5% to $50 million (+8% at constant currency). The 8% increase at constant curreny was driven by higher sales of dialyzers, hemodialysis solutions and concentrates, machines and bloodlines, partially offset by lower sales of peritoneal dialysis products. Operating income came in at $16 million (+4%) with the operating margin increasing to 9.3%. The margin increase was primarily driven by favorable foreign exchange effects. For the first half of 2016, Latin America revenue decreased by 18% to $328 million (+7% at constant currency) and operating income decreased by 19% to $27 million. Cash flow In the first half of 2016, the company generated net cash provided by operating activities of $857 million, representing 9.9% of revenue. Employees Recent events: 6008 CAREsystem Outlook 2016 confirmed Conference call Fresenius Medical Care is the world’s largest provider of products and services for individuals with renal diseases, of which around 2.8 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,504 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 301,548 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of additional medical services in the field of care coordination. For more information about Fresenius Medical Care, visit the Company’s website at www.freseniusmedicalcare.com. Disclaimer
2016-08-01 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English | |
Company: | Fresenius Medical Care AG & Co. KGaA | |
Else-Kröner-Straße 1 | ||
61352 Bad Homburg | ||
Germany | ||
Phone: | +49 (0) 6172- 609 2525 | |
Fax: | +49 (0) 6172- 609 2301 | |
E-mail: | ir@fmc-ag.com | |
Internet: | www.freseniusmedicalcare.com | |
ISIN: | DE0005785802, , | |
WKN: | 578580, 578583 | |
Indices: | DAX | |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; NYSE | |
End of News | DGAP News Service |