BAD HOMBURG VOR DER HOEHE (dpa-AFX) - German healthcare company Fresenius SE (FSNUF.PK, FSNPF.PK) Tuesday reported increased profit and sales for the third quarter, and reiterated the annual guidance, amid commendable performances in Europe and Asia-Pacific. Meanwhile, its Dialysis services unit Fresenius Medical Care AG & Co. KGAA (FMS) posted a small drop in profit, but sales showed strong momentum.
The parent company said its third-quarter net income attributable to shareholders increased 4 percent to 276 million euros from 265 million euros in the prior year.
Group sales increased 18 percent to 5.978 billion euros from 5.045 billion euros in the prior year, and were up 20 percent in constant currency. Organic sales growth was 6 percent for the quarter.
Segment-wise, Fresenius Kabi, which offers infusion therapies, intravenously administered generic drugs and clinical nutrition, reported a 4 percent drop in net income to 120 million euros, while sales were 6 percent higher at 1.294 billion euros.
In Fresenius Helios, Germany's largest hospital operator, net income before integration costs jumped 43 percent to 107 million euros, and sales increased 62 percent to 1.362 billion euros, with organic sales growth posted at 6 percent.
Geographically, sales grew 9 percent in North America to 2.378 billion euros, and jumped 29 percent in Europe to 2.584 billion euros. In Asia-Pacific, the growth was 25 percent at 602 million euros.
Ulf Mark Schneider, CEO, said, 'Fresenius had a strong third quarter with growth accelerating in all four business segments. Emerging markets stood out with double-digit organic sales growth. We confirm our full year Group guidance and remain optimistic about the fundamental growth trends in our markets.'
For 2014, in constant currency, the company still expects net income growth of 2 to 5 percent, and sales increase of 14 to 16 percent.
The company's unit Fresenius Medical Care, which is traded separately, reported a 1 percent slide in net income to $271 million, while sales climbed 12 percent from last year to $4.113 billion.
The revenue growth was 13 percent at constant currency, and 7 percent organically. Within the business, Dialysis services revenue climbed 14 percent to $3.197 million and dialysis product revenue increased 7 percent to $916 million.
Revenue from North America increased 11 percent $2.710 billion, while International revenues were 13 percent higher at $1.386 billion.
The unit said it is on track to achieve its guidance as well as its cost savings target for the full year.
Net income attributable to shareholders is still expected to be between $1.0 billion and $1.05 billion, and revenue at around $15.2 billion. The revenue forecast represents a growth rate of around 4 percent, and excludes revenue of about $500 million from acquisitions completed during the first nine months of 2014.
Fresenius settled in Frankfurt on Monday at 41.06 euros, while Fresenius Medical Care slipped 0.5 percent to 58.22 euros.
Copyright RTT News/dpa-AFX