Fresenius Medical Care reported mixed second-quarter results, with revenue slightly exceeding expectations at €4.79 billion (versus forecasts of €4.75 billion) but profitability lagging behind investor hopes. The adjusted operating income rose 9% to €476 million, yet the operating margin remained stagnant at 8.9%, disappointing markets. A weak U.S. dollar and flat treatment volumes in the company’s key American market weighed on performance, with currency effects shaving four percentage points off profit growth. While organic revenue growth of 7% signaled underlying strength, higher patient mortality rates and post-flu season treatment disruptions offset gains from new patient inflows.
Outlook Hinges on Recovery
The dialysis giant maintained its full-year guidance, projecting low single-digit currency-adjusted revenue growth and a 10-29% rise in operating income. Leadership expressed optimism for improved operational and financial performance in the latter half of 2024, citing strong patient recruitment trends. An upcoming share buyback program aims to reassure investors, but stagnant margins and external headwinds leave questions about near-term stock momentum.
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