Corporate | 3 May 2016 07:21
Fresenius Medical Care AG & Co. KGaA reports strong start to the year 2016
|
DGAP-News: Fresenius Medical Care AG & Co. KGaA / Key word(s): Quarterly / Interim Statement
May 3, 2016
INVESTOR
First quarter 2016 / Fresenius Medical Care reports strong start to the year 2016 – Group revenue increased +6%, strong net income growth of +9% – North America: revenue +10%, significant increase of operating income (EBIT) +28% – Segments outside North America strongly influenced by currency – Care Coordination with strong organic growth of +17% – First quarter performance in line to achieve full year guidance First quarter 2016 key figures:
Net revenue $4,205 million +6%
Rice Powell, Chief Executive Officer of Fresenius Medical Care stated: “We had a strong start to the year. Our core dialysis service and products business showed a very strong underlying growth globally. While our businesses outside the United States were largely influenced by currency, the North American market delivered a very satisfying result. In addition, Care Coordination continues to show strong topline growth. We are investing in our future growth in this area, but also expect the profitability to improve again in the course of the year. We are on track to achieve our full year guidance for 2016.”
Revenue & Earnings
Total operating income (EBIT) increased by 7% to $540 million (margin of 12.8%). This increase was driven by lower costs for Health Care supplies, a favorable impact from higher volume with commercial payors and further efficiency gains partially offset by higher personnel expense related to dialysis services in the North America segment, unfavourable foreign exchange effects in all segments outside North America as well as higher legal and consulting expenses. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first quarter of 2016 was $228 million, a strong increase of 9% compared to $210 million of last year’s first quarter. Based on a number of approximately 305.3 million shares (weighted average number of shares outstanding), basic earnings per share (EPS) for the first three months 2016 amounted to $0.75, compared to $0.69 for the first quarter of 2015.
Segment development
The substantially improved dialysis operating income margin of 16.9% (+300 basis points compared to Q1 2015) was due to lower costs from Health Care supplies, a favourable impact from commercial payors as well as decreased legal expenses. Total operating income (EBIT) for the quarter under review was $436 million, an impressive increase of 28%. Total operating income margin improved to 14.3%. EMEA revenue increased by 5% to $631 million at constant currency. Positive business movements from an increase in dialysis treatments were offset by the negative currency impact, especially due to the strong US Dollar. Also product revenue came in with a 5% plus at constant currency ($330 million) due to increased sales of bloodlines, products for acute care treatments and hemodialysis solutions and concentrates. Operating income of $130 million in Q1 2016 was negatively impacted mainly due to the weakening of various local currencies. Asia Pacific grew by 10% at constant currency to $374 million. The region recorded $168 million in Net Health Care revenue, based on an increase of 6% in dialysis treatments. With a growth of +16% at constant currency to $206 million, the product business showed a very strong sales performance in dialysers, bloodlines, machines and peritoneal dialysis products. Operating income decreased to $65 million (-23%) and was impacted by unfavorable foreign exchange effects, increased costs related to further sales development and costs associated with changes in the Management Board. Latin America delivered revenue of $153 million, an improvement of 5% at constant currency (-23% on a reported basis). In addition to the negative currency impact, the business was mainly influenced by clinics sold in Venezuela in 2015. Dialysis treatments decreased accordingly by 6%. Product revenue decreased by 4% at constant currency to $40 million. Operating income was at $11 million, compared to $18 million in Q1 2015. Operating income margin decreased to 7.1% in Q1 2016 from 9.0% in Q1 2015 mainly due to higher costs related to inflation, unfavorable foreign exchange effects and an unfavorable impact from manufacturing production costs, partially offset by the impact from prior year lower margin dialysis service business in Venezuela which was subsequently divested in the third quarter of 2015. Net interest expense in Q1 2016 was $105 million compared to $102 million in the first quarter of 2015. The slight increase is based on a lower interest income as a result of the repayment of interest bearing notes receivables. Income tax expense was $138 million for the first quarter of 2016, which translates into an effective tax rate of 31.8%, substantially lower than in Q1 2015 (34.3%). This was primarily driven by increased tax-free income attributable to noncontrolling interest in the US and lower tax rates in other jurisdictions.
Cash flow
Employees
Outlook 2016 confirmed
Conference call
Please refer to our statement of earnings included at the end of this news and to the attachments as separate excel- and PDF-files for a complete overview of the results for the first quarter 2016. Fresenius Medical Care is the world’s largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.8 million individuals worldwide. Through its network of 3,432 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 294,043 patients around the globe. Fresenius Medical Care is also the world’s leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. For more information visit the Company’s website at www.freseniusmedicalcare.com .
Disclaimer
Fresenius Medical Care AG & Co. KGaA
Oliver Maier
Published by
Annual reports, interim reports and further
For printed material, please contact Investor Relations.
2016-05-03 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
|
| Language: | English | |
| Company: | Fresenius Medical Care AG & Co. KGaA | |
| Else-Kröner-Straße 1 | ||
| 61352 Bad Homburg | ||
| Germany | ||
| Phone: | +49 (0) 6172- 609 2525 | |
| Fax: | +49 (0) 6172- 609 2301 | |
| E-mail: | ir@fmc-ag.com | |
| Internet: | www.freseniusmedicalcare.com | |
| ISIN: | DE0005785802, , | |
| WKN: | 578580, 578583 | |
| Indices: | DAX | |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart; Terminbörse EUREX; NYSE | |
| End of News | DGAP News Service |