Fresenius Backs 2019 Outlook, Hopeful About Future
February 20 2019 - 2:10AM
Dow Jones News
By Donato Paolo Mancini
Fresenius SE & Co. KGaA (FRE.XE) backed its 2019 guidance on
Wednesday, after revising it last year, and said its sales and net
profit for 2018 grew.
The German health-care company said 2018 net profit totaled 1.87
billion euros ($2.12 billion), up 7% in constant currencies from
the year prior, while sales grew 6% to EUR33.5 billion.
The company backed its 2019 outlook, saying it expects net
profit to stay flat and for sales to grow between 3% and 6% in
constant currencies. It had given revised guidance for the medium
term last year.
It will also increase its dividend for 2019, it said. Between
2020 and 2023, sales are projected to grow at a compounded annual
growth rate of between 4% and 7%, while net income is projected to
grow between 5% and 9%.
Fresenius noted its acquisition of NxStage Medical Inc. (NXTM)
hasn't been yet completed. It said previously that the U.S. federal
government shutdown had affected the acquisition. On Wednesday, it
said this wouldn't affect group metrics.
The company also said its Helios division in Germany was hit by
regulatory changes, while in Spain it showed continuous growth.
At Fresenius Medical Care AG (FME.XE)--a provider of dialysis
products and services--comparable sales for the year increased 4%
in constant currencies to EUR16.55 billion. Adjusted net profit for
the year increased to EUR1.19 billion, up 4%.
For 2019, the company targets net profit growth of between -2%
and +2%, and for adjusted net sales, excluding an agreement in the
U.S., growth of between 3% and 7%. For 2020, it expects the metrics
to grow at a mid to high single-digit rate.
It said separately that it would undertake a share-buyback
program valued at up to EUR1 billion.
Stephan Sturm, chief executive of Fresenius, said that 2018
wasn't an easy year, but that it was still successful. He said 2019
would be a year of investment in growth areas such as home
dialysis, biosimilars, and new hospital services and therapies.
Write to Donato Paolo Mancini at
donatopaolo.mancini@dowjones.com; @donatopmancini
(END) Dow Jones Newswires
February 20, 2019 01:55 ET (06:55 GMT)
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