Fresenius Reports Net Loss for Fourth Quarter
Fresenius, a German health-care company, has reported a swing to a net loss for the fourth quarter of 614 million euros. The loss is mainly attributed to the deconsolidation of Fresenius Medical Care from its accounts, although it had no cash impact. However, the company remains optimistic about its future growth, forecasting increased earnings and sales for 2024.
Revenue and Outlook:
Despite the net loss, Fresenius saw a 5% increase in revenue on an organic basis, driven by its Fresenius Kabi pharmaceutical business. Analysts had estimated an adjusted operating profit of EUR590.7 million and revenue of EUR5.80 billion for the fourth quarter according to consensus estimates compiled by Vara Research.
Cost-saving Measures:
The company also announced that it has raised its cost-savings target for 2025 to EUR400 million from EUR350 million. This comes after Fresenius exceeded its goal for 2023. The company’s operating profit before special items increased by 13% to EUR634 million.
Future Growth Goals:
Looking ahead, Fresenius has set a target for organic revenue growth between 3% and 6% for 2024. It expects EBIT to grow between 4% and 8% at constant currency. With these goals in mind, the company remains focused on its expansion and development in the health-care sector.
Conclusion:
Despite the challenges faced in the fourth quarter, Fresenius is confident in its ability to rebound and continue its growth trajectory. By adapting its cost-savings target and capitalizing on the strong performance of its pharmaceutical business, the company aims to deliver positive results in the coming years.
Analyst comment
Positive news: Despite a net loss, Fresenius saw a 5% increase in revenue and exceeded operating profit goals. The company raised its cost-savings target and remains optimistic about future growth, aiming for increased earnings and sales in 2024. The company is confident in its ability to rebound and capitalize on its strong performance in the pharmaceutical business. Market: Fresenius is expected to rebound and continue its growth trajectory with increased revenue, earnings, and cost-saving measures.
