BAD HOMBURG VOR DER HOEHE (dpa-AFX) - Fresenius (FSNUF.PK, FSNPF.PK) said it has delivered a strong final quarter and fully met targets for the year. Fourth quarter EBIT before special items was 1.17 billion euros, down 7%, or a decline of 9% in constant currency. The company said the decline in EBIT before special items is primarily due to COVID-19 related headwinds at Fresenius Medical Care.
In 2022, the company expects continued profitable growth. As the company has made faster than expected progress in its cost and efficiency program, it was able to confirm the medium-term targets set before the pandemic.
Before special items, fourth quarter net income attributable to shareholders of Fresenius SE & Co.KGaA was 521 million euros, up 5% or an increase of 3% in constant currency. The company said the increase is driven by the strong development of Fresenius Kabi's Emerging Market business, a good performance at Helios Germany, an excellent finish to the year by Fresenius Vamed and the favorable net interest development. Excluding estimated COVID-19 effects, Group net income before special items attributable to shareholders of Fresenius SE & Co. KGaA would have grown 3% to 7% in constant currency. Earnings per share before special items increased by 5% or up 2% in constant currency to 0.94 euros from 0.88 euros.
Reported Group net income attributable to shareholders of Fresenius SE & Co. KGaA increased to 499 million euros from 410 million euros, prior year. Reported earnings per share was 0.90 euros compared to 0.73 euros.
Fourth quarter sales were 9.97 billion euros, up 7% or an increase of 5% in constant currency. Organic growth in sales was 4%. Excluding estimated COVID-19 effects, Group sales growth would have been 5% to 6% in constant currency.
In fiscal 2021, Group EBIT before special items decreased by 8%, or down 6% in constant currency to 4.25 billion euros. Group sales increased by 3% or 5% in constant currency to 37.52 billion euros. Organic growth in sales was 4%. Excluding estimated COVID-19 effects, Group sales growth would have been 5% to 6% in constant currency.
For fiscal 2022, Fresenius projects sales growth in a mid-single-digit percentage range in constant currency. Net income to shareholders of Fresenius SE & Co.KGaA before special items is expected to grow in a low-single-digit percentage range in constant currency. Net income to shareholders of Fresenius SE & Co.KGaA for the Group excluding Fresenius Medical Care is expected to grow in a low-single-digit percentage range in constant currency.
Fresenius expects Group earnings growth to meaningfully accelerate until 2023. The company confirmed its medium-term targets set in 2019. Fresenius now anticipates Group organic sales growth to reach the bottom to middle of the targeted 4% to 7% compounded annual growth rate (CAGR) and Group organic net income attributable to shareholders of Fresenius SE& Co. KGaA growth to be at the bottom end of the 5% to 9% CAGR during 2020 to 2023.
The Management Board of Fresenius will propose to the Supervisory Board a dividend increase of 5% to 0.92 euros per share for fiscal 2021. The Management Board will propose a scrip dividend to the Supervisory Board.
Fresenius aims to be climate neutral by 2040 and to reduce 50% of absolute scope 1 and scope 2 emissions by 2030 compared to 2020 levels.
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