BAD HOMBURG VOR DER HOEHE (dpa-AFX) - Fresenius SE (FSNUF.PK, FSNPF.PK) said it cut its outlook for fiscal year 2022, as a consequence of the development at Fresenius Medical Care, and despite all other Fresenius Group segments confirming their respective outlook for both revenue and EBIT.
Fresenius Medical Care's financial performance in the second-quarter was significantly impacted by worsened labor shortages and related meaningfully increased wage inflation in the U.S. The further deterioration of the macro-economic environment resulted in accelerated non-wage inflation, particularly higher supply chain costs.
At constant currency, Fresenius SE now anticipates annual group sales to grow in a low-to-mid single-digit percentage range compared to the prior outlook of mid-single digit percentage range. It projects annual group net income to decline in a low-to-mid single-digit percentage range compared to the prior outlook of increase in a low-single-digit percentage range.
As a result of the updated expectations for fiscal year 2022 Fresenius now believes its medium-term net income target is no longer achievable. Fresenius had expected Group organic net income6 growth to be at the bottom end of the 5% to 9% compounded annual growth rate (CAGR) range for 2020 to 2023.
At the same time, Fresenius specifies its Group organic sales growth target to reach the low-end of the targeted 4% to 7% compounded annual growth rate (CAGR) range for 2020 to 2023.
Fresenius's preliminary group sales increased by 8% or 3% in constant currency to 10.02 billion euros in the second quarter of 2022 versus prior-year quarter. Preliminary net income declined by 5% or 9% in constant currency to 450 million euros in the second quarter of 2022.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
Copyright(c) 2022 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX