Germany-based Fresenius Medical Care (FRA: FMEA) has released its financial report for the third quarter of 2024. The total revenues for the quarter reached EUR 4.76 billion, marking a year-on-year (YOY) decrease of 2% in constant exchange rate terms. The operating income saw a significant rise, increasing by 43% YOY to EUR 463 million. This performance has led the company to adjust its operating income growth outlook to 16-18%, leaning towards the upper end of the previous range for the full year 2024.
Care Delivery Revenue and Regional Performance
Care Delivery revenue experienced a decrease of 5%, amounting to EUR 3,770 million (a 4% decrease at constant currency and a 1% increase organically). In the U.S. Care Delivery segment, revenue decreased by 1% (0% at constant currency and 0% organically), with growth supported by the value-based care business, increased treatment volumes, higher reimbursement rates, and a favorable payor mix shift, partially offset by increased implicit price concessions. In contrast, Care Delivery International saw a revenue decrease of 22% (a 21% decrease at constant currency and a 4% increase organically), primarily due to divestments as part of the portfolio optimization plan, which was partially offset by organic growth.
Care Enablement Revenue Growth
Care Enablement revenue grew by 2% to EUR 1,359 million (a 4% increase at constant currency and a 4% increase organically), with volume growth in all geographical regions. Pricing momentum remained positive outside of China, while in China, pricing was negatively impacted by the rollout of volume-based procurement, as expected.
Portfolio Optimization and Divestments
Fresenius Medical Care continues to execute its portfolio optimization plan, focusing on exiting non-core and dilutive assets. During the third quarter, the company closed divestments that included clinic operations in Curacao, Guatemala, and Peru, demonstrating its commitment to streamlining operations and enhancing core business performance.- Flcube.com
