The dialysis specialist Fresenius Medical Care (FMC) believes that it is well on the way to getting its transformation and earnings growth underway following its separation from the parent company Fresenius. The self-imposed earnings target was already exceeded in 2023, and momentum is set to increase further in the current cycle. "2024 will be a year of accelerated, profitable growth," explains CEO Helen Giza. FMC will come closer to its "ambitious medium-term margin target", the manager confirmed. The target is an operating margin in the range of 10 to 14% by 2025.

FMC increased revenue by 5% to 19.5 billion euros in 2023 after adjusting for currency effects, while operating profit adjusted for special effects grew disproportionately by 15% to 1.74 billion euros. This resulted in an increase in the margin to 8.9% after 7.9% in the previous year. The company had forecast an increase in earnings of between 12 and 14%. FMC raised its earnings forecast twice in the course of 2023 and exceeded the target range in the end. "I would like to continue this combination of a realistic financial outlook in conjunction with the successful realisation of the targets we have set ourselves," says Giza. The Group puts organic growth for 2023 at just under 4%.

For the current year, FMC continues to forecast sales growth in the low to mid-single-digit percentage range. The operating result is expected to increase in the mid to high teens. The focus in 2024 will remain on continuous improvement, ongoing portfolio optimisation and disciplined capital allocation. The transformation programme is bearing fruit, and savings have been realised earlier than expected, emphasises Giza.

Tight cost management and financial policy have contributed to a significant increase in cash inflow. Free cash flow jumped by 32% to 1.96 billion euros, while the gearing ratio fell from 3.4 to 3.2. Shareholders are to receive a 6% increase in the dividend to 1.19 euros per share for 2023, meaning that FMC will distribute a total of 350 million euros. In the previous year, FMC had lowered the dividend rate from 1.35 euros to 1.12 euros. The largest shareholder with a 32% stake is Fresenius, which is cancelling its dividend this year due to the use of government aid for energy costs.

Last year, FMC changed its legal form from an association limited by shares to a stock corporation. Since then, the dialysis specialist, who was suffering from earnings problems, is no longer fully consolidated in the group of the significant shareholder Fresenius. The unbundling was intended to give both companies more flexibility for their own strategic development. Both groups are in the process of restructuring their portfolios and have so far made moderate acquisitions. However, with Fresenius relinquishing its controlling interest in FMC, there is also the option for significant strategic changes.