BAD HOMBURG VOR DER HOEHE (dpa-AFX) - Fresenius Medical Care AG & Co. KGaA (FMS) reported that its fourth-quarter net income attributable to shareholders declined 48% to 177 million euros from last year, while it was down 43% at constant currency, hurt by impairment in the Latin America region and accelerated excess mortality due to COVID-19. Basic earnings per share decreased by 47% or 42% at constant currency to 0.61 euros from the previous year.
Excluding the Latin America impairment and on an adjusted 2019 basis, net income for the quarter grew by 1% to 372 million euros from the prior year.
Operating income declined by 25% or 18% at constant currency to 462 million euros from the prior year, due to a macro-economically driven impairment of goodwill and trade names in the Latin America segment, unfavorable COVID-19 effects and a lower reimbursement for calcimimetics.
Quarterly revenue decreased 4% to 4.40 billion euros from last year, while it was up 4% at constant currency. Organic growth of 1% was realized including the expected negative impacts from lower reimbursement for calcimimetics and COVID-19-related slower treatment growth.
The company plans to propose a dividend of 1.34 euros per share to the annual general meeting in May 2021. The proposal would result in the 24th consecutive dividend increase.
Looking ahead for 2021, the company expects revenue to grow at a low- to mid-single digit percentage rate and net income to decline at a high-teens to mid-twenties percentage rate against the higher than expected 2020 base.
The company confirmed its 2025 targets that are based on the company's mid-term strategy. It assumes that FME25 compensates for the anticipated COVID-19-related effects. Until 2025 the company expects compounded annual average increases in the mid-single-digit percentage range for revenue and in the high-single-digit percentage range for net income.
Copyright RTT News/dpa-AFX
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