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February 27, 2018 - 10:00 am - 00:00 am
Bad Homburg, Germany
If no timeframe is specified, information refers to Q1-3/2017
Q3/2017:
Q1-3/2017:
Stephan Sturm, CEO of Fresenius, said: “We can report another very good quarter, once again boosted by strong sales and earnings growth. The prospects for our businesses remain excellent. We are therefore confirming our guidance and are heading towards yet another record year. From this position of strength, we intend to swiftly close and integrate our strategically important acquisitions. Thus, we are expanding our range of high-quality, affordable healthcare products and services for the benefit of our patients and our company.“
1 Before acquisition-related expenses2 Net income attributable to shareholders of Fresenius SE & Co. KGaA3 Consistent with scope of original guidance: before acquisition-related expenses; before expenditures for further development of biosimilars business
For a detailed overview of adjustments, please see the reconciliation tables on page 15-16 in the pdf document.
2017 Group guidance confirmed
Fresenius confirms its guidance for 2017. Group sales are expected to increase by 15% to 17% in constant currency. Group net income1,2,3 is expected to grow by 19% to 21% in constant currency.
Including the acquisition of Merck KGaA’s biosimilars business and pro forma the acquisition of Akorn, the net debt/EBITDA4 ratio is expected to be approximately 3.3 at the end of 2017.
16% sales growth in constant currency
Group sales increased by 16% (16% in constant currency) to €25,191 million (Q1-3/2016: €21,651 million). Organic sales growth was 6%5 while acquisitions contributed 10%. In Q3/2017, Group sales increased by 12% (15% in constant currency) to €8,297 million (Q3/2016: €7,433 million). Negative currency translation effects (-3%) were mainly related to the devaluation of the US dollar. Organic sales growth was 6% while acquisitions contributed 9%.
1 Net income attributable to shareholders of Fresenius SE & Co. KGaA2 Before acquisition-related expenses of ~€50 m3 Before expected expenditures for further development of biosimilars business of ~€60 m4 Net debt and EBITDA at FY average exchange rates; before acquisition-related expenses of ~€50 m; excluding further potential acquisitions5 Excluding effects of Fresenius Medical Care’s agreement with the United States Departments of Veterans Affairs and Justice (VA agreement)
For a detailed overview of adjustments, please see the reconciliation tables on page 15-16 in the pdf document.
20% adjusted net income2,3 growth in constant currency
Group EBITDA4 increased by 16% (16% in constant currency) to €4,579 million (Q1-3/2016: €3,959 million). Group EBIT4 increased by 15% (15% in constant currency) to €3,522 million (Q1-3/2016: €3,058 million) with an EBIT margin4 of 14.0% (Q1-3/2016: 14.1%). In Q3/2017, Group EBIT4 increased by 5% (9% in constant currency) to €1,129 million (Q3/2016: €1,071 million) with an EBIT margin4 of 13.6% (Q3/2016: 14.4%).
Group net interest4 reached -€484 million (Q1-3/2016: -€433 million). The increase is mainly driven by the financing of the Quirónsalud acquisition.
1 Including effects of VA agreement2 Net income attributable to shareholders of Fresenius SE & Co. KGaA3 Consistent with scope of original guidance: before acquisition-related expenses; before expenditures for further development of biosimilars business4 Before acquisition-related expenses
For a detailed overview of adjustments, please see the reconciliation tables on page 15-16 in the pdf document.
The Group tax rate1 was 28.1% (Q1-3/2016: 28.2%). In Q3/2017, the Group tax rate1 decreased to 27.4% (Q3/2016: 27.9%), mainly driven by a re-evaluation of estimated future tax payments at Fresenius Medical Care.
Noncontrolling interest increased to €854 million (Q1-3/2016: €768 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.
Adjusted Group net income2,3 increased by 20% (20% in constant currency) to €1,339 million (Q1-3/2016: €1,118 million). Adjusted earnings per share2,3 increased by 19% (19% in constant currency) to €2.42 (Q1-3/2016: €2.04). In Q3/2017, adjusted Group net income2,3 increased by 11% (14% in constant currency) to €423 million (Q3/2016: €382 million). Adjusted earnings per share2,3 increased by 11% (14% in constant currency) to €0.77 (Q3/2016: €0.69).
Group net income before acquisition-related expenses1,2 increased by 19% (19% in constant currency) to €1,329 million (Q1-3/2016: €1,118 million). Earnings per share1,2 increased by 18% (18% in constant currency) to €2.40 (Q1-3/2016: €2.04). In Q3/2017, Group net income1,2 increased by 8% (11% in constant currency) to €413 million (Q3/2016: €382 million). Earnings per share1,2 increased by 8% (11% in constant currency) to €0.75 (Q3/2016: €0.69).
Group net income2 increased by 17% (17% in constant currency) to €1,303 million (Q1-3/2016: €1,118 million). Earnings per share2 increased by 15% (15% in constant currency) to €2.35 (Q1-3/2016: €2.04). In Q3/2017, Group net income2 increased by 4% (7% in constant currency) to €396 million (Q3/2016: €382 million). Earnings per share2 increased by 3% (6% in constant currency) to €0.71 (Q3/2016: €0.69).
1 Before acquisition-related expenses2 Net income attributable to shareholders of Fresenius SE & Co. KGaA3 Consistent with scope of original guidance: before acquisition-related expenses; before expenditures for further development of biosimilars business
For a detailed overview of adjustments, please see the reconciliation tables on page 15-16 in the pdf document.
Continued investment in growth
Spending on property, plant and equipment was €1,137 million (Q1-3/2016: €1,059 million), primarily for the modernization and expansion of dialysis clinics, production facilities as well as hospitals and day clinics. Total acquisition spending of €6,662 million (Q1-3/2016: €592 million) was mainly related to the acquisitions of Quirónsalud and Merck KGaA’s biosimilars business.
Strong operating cash flow
Operating cash flow increased by 24% to €2,821 million (Q1-3/2016: €2,273 million). The cash flow margin increased to 11.2% (Q1-3/2016: 10.5%). In Q3/2017, operating cash flow increased by 21% to €1,138 million (Q3/2016: €940 million), with a margin of 13.7% (Q3/2016: 12.6%).
Free cash flow before acquisitions and dividends increased by 41% to €1,705 million (Q1-3/2016: €1,206 million). Free cash flow after acquisitions and dividends was -€5,233 million (Q1-3/2016: €252 million).
Solid balance sheet structure
The Group’s total assets increased by 14% (20% in constant currency) to €53,097 million (Dec. 31, 2016: €46,697 million), mainly due to the acquisition of Quirónsalud. Current assets grew by 10% (16% in constant currency) to €12,870 million (Dec. 31, 2016: €11,744 million). Non-current assets increased by 15% (22% in constant currency) to €40,227 million (Dec. 31, 2016: € 34,953 million).
Total shareholders’ equity grew by 2% (10% in constant currency) to €21,167 million (Dec. 31, 2016: €20,849 million). The equity ratio was 39.9% (Dec. 31, 2016: 44.6%).
Group debt increased by 32% (37% in constant currency) to €19,496 million (Dec. 31, 2016: € 14,780 million), mainly driven by the acquisition financing of Quirónsalud. As of September 30, 2017, the net debt/EBITDA ratio was 2.971,2 (Dec. 31, 2016: 2.331; pro forma Quirónsalud 3.091).
1 Net debt and EBITDA at LTM average exchange rates2 Before acquisition-related expenses
For a detailed overview of adjustments, please see the reconciliation tables on page 15-16 in the pdf document.
Business Segments
Fresenius Medical Care
Fresenius Medical Care is the world's largest provider of products and services for individuals with chronic kidney failure. As of September 30, 2017, Fresenius Medical Care was treating 317,792 patients in 3,714 dialysis clinics. Along with its core business, the company seeks to expand the range of medical services in the field of care coordination.
Sales increased by 10% (10% in constant currency, 7% organic) to €13,355 million (Q1-3/2016: €12,153 million). Acquisitions and the agreement with the United States Departments of Veterans Affairs and Justice (VA agreement) contributed 3% in total. In Q3/2017, sales increased by 3% (8% in constant currency, 6% organic) to €4,336 million (Q3/2016: €4,211 million).
Health Care Services sales (dialysis services and care coordination) increased by 11% (10% in constant currency) to €10,950 million (Q1-3/2016: €9,910 million). Product sales increased by 7% (7% in constant currency) to €2,404 million (Q1-3/2016: €2,244 million).
In North America, sales increased by 10% (10% in constant currency) to €9,715 million (Q1-3/2016: €8,828 million). Health Care Services sales grew by 10% (10% in constant currency) to €9,086 million (Q1-3/2016: €8,224 million). Product sales increased by 4% (4% in constant currency) to €629 million (Q1-3/2016: €604 million).
Sales outside North America increased by 9% (10% in constant currency) to €3,628 million (Q1-3/2016: €3,315 million). Health Care Services sales increased by 11% (11% in constant currency) to €1,864 million (Q1-3/2016: €1,686 million). Product sales increased by 8% (8% in constant currency) to €1,764 million (Q1-3/2016: €1,630 million).
1 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA2 Excluding effects of VA agreement and natural disaster costs
EBIT increased by 10% (10% in constant currency) to €1,843 million (Q1-3/2016: €1,679 million). The EBIT margin was 13.8% (Q1-3/2016: 13.8%). In Q3/2017, EBIT was on the prior-year level (increased by 4% in constant currency) at €608 million (Q3/2016: €611 million). Foreign currency effects, lower contributions from the vascular business, higher costs in the pharmacy services business and natural disaster costs in North America negatively impacted EBIT, while organic growth and lower research and development expenses contributed positively. The EBIT margin was 14.0% (Q3/2016: 14.5%).
Net income1 increased by 13% (14% in constant currency) to €886 million (Q1-3/2016: €781 million). Consistent with the original scope of guidance, i.e. excluding the effects of the VA agreement and natural disaster costs, net income1 increased by 8% in constant currency. In Q3/2017, net income1 grew by 2% (6% in constant currency) to €309 million (Q3/2016: €304 million). Excluding the effects of the VA agreement and natural disaster costs, net income1 increased by 5% (8% in constant currency).
Operating cash flow increased by 43% to €1,664 million (Q1-3/2016: €1,160 million). The cash flow margin increased to 12.5% (Q1-3/2016: 9.5%). In Q3/2017, operating cash flow increased by 56% to €612 million (Q3/2016: €393 million) with a cash flow margin of 14.1% (Q3/2016: 9.3%). The increase is primarily attributable to last year’s cash contribution to a pension plan in the United States as well as other working capital items.
Fresenius Medical Care confirms its outlook for 2017. The company expects sales to grow by 8% to 10%2 in constant currency. Net income1,3 is expected to increase by 7% to 9% in constant currency.
For further information, please see Fresenius Medical Care’s Investor News at www.freseniusmedicalcare.com.
1 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA2 Excluding effects of VA agreement3 Excluding effects of VA agreement and natural disaster costs
Fresenius Kabi
Fresenius Kabi offers intravenously administered generic drugs, clinical nutrition and infusion therapies for seriously and chronically ill patients in the hospital and outpatient environments. The company is also a leading supplier of medical devices and transfusion technology products.
Sales increased by 7% (7% in constant currency, 7% organic) to €4,764 million (Q1-3/2016: €4,457 million). Acquisitions/divestitures had no meaningful impact on sales. In Q3/2017, sales increased by 3% (7% in constant currency, 7% organic) to €1,562 million (Q3/2016: €1,511 million). Negative currency translation effects (-4%) were mainly related to the devaluation of the US dollar and the Chinese yuan against the Euro.
Sales in Europe increased by 4% (5% organic) to €1,635 million (Q1-3/2016: €1,569 million). In Q3/2017, sales increased by 3% (4% organic) to €538 million (Q3/2016: €521 million).
Sales in North America increased by 7% (6% organic) to €1,736 million (Q1-3/2016: €1,628 million). In Q3/2017, sales increased by 1% (7% organic) to €549 million (Q3/2016: €542 million).
Sales in Asia-Pacific increased by 9% (11% organic) to €894 million (Q1-3/2016: €821 million). In Q3/2017, sales increased by 8% (12% organic) to €312 million (Q3/2016: €290 million).
Sales in Latin America/Africa increased by 14% (10% organic) to €499 million (Q1-3/2016: €439 million). In Q3/2017, sales increased by 3% (8% organic) to €163 million (Q3/2016: €158 million).
1 Before acquisition-related expenses2 Consistent with scope of original guidance: before acquisition-related expenses; before expenditures for further development of biosimilars business3 Net income attributable to shareholders of Fresenius SE & Co. KGaA
For a detailed overview of adjustments, please see the reconciliation tables on page 15-16 in the pdf document.
Adjusted EBIT1 increased by 6% (7% in constant currency) to €919 million (Q1-3/2016: €863 million). The adjusted EBIT margin1 was 19.3% (Q1-3/2016: 19.4%). In Q3/2017, adjusted EBIT1 increased by 6% (11% in constant currency) to €297 million (Q3/2016: €281 million), despite expenses related to hurricane Maria on Puerto Rico. The adjusted EBIT margin1 increased to 19.0% (Q3/2016: 18.6%).
EBIT2 increased by 5% (6% in constant currency) to €905 million (Q1-3/2016: €863 million). The EBIT margin2 was 19.0% (Q1-3/2016: 19.4%). In Q3/2017, EBIT2 increased by 1% (6% in constant currency) to €283 million (Q3/2016: €281 million). Given the €14 million expenditure for the further development of the biosimilars business, the EBIT margin2 decreased to 18.1% (Q3/2016: 18.6%).
Adjusted net income1,3 increased by 13% (14% in constant currency) to €554 million (Q1-3/2016: €491 million). In Q3/2017, adjusted net income1,3 increased by 13% (19% in constant currency) to €175 million (Q3/2016: €155 million).
While operating cash flow reached a very strong €640 million, it could not match the exceptional prior-year figure (Q1-3/2016: €661 million). The same applied to the strong margin of 13.4% (Q1-3/2016: 14.8%). In Q3/2017, operating cash flow reached a healthy €245 million (Q3/2016: €322 million) despite a cash prepayment for the biosimilars business and adverse currency translation effects. The cash flow margin was 15.7% (Q3/2016: 21.3%). Excluding the prepayment, operating cash flow was €290 with a margin of 18.6%.
Fresenius Kabi confirms its outlook for 2017 and expects 5% to 7% organic sales growth and EBIT growth in constant currency of 6% to 8%4,5.
1 Consistent with scope of original guidance: before acquisition-related expenses; before expenditures for further development of biosimilars business2 Before acquisition-related expenses3 Net income attributable to shareholders of Fresenius SE & Co. KGaA4 Before acquisition-related expenses of ~€50 m5 Before expected expenditures for further development of biosimilars business of ~€60 mFor a detailed overview of adjustments, please see the reconciliation tables on page 15-16 in the pdf document.
Fresenius Helios
Fresenius Helios is Europe's leading private hospital operator. The company comprises Helios Kliniken in Germany and Quirónsalud in Spain. Helios Kliniken operates 111 hospitals, thereof 88 acute care clinics and 23 post-acute care clinics, and treats more than 5.2 million patients annually. Quirónsalud operates 44 hospitals, 44 outpatient centers and around 300 occupational risk prevention centers, and treats approximately 9.7 million patients per year.
Fresenius Helios increased sales by 47% (4% organic) to €6,422 million (Q1-3/2016: €4,382 million). Acquisitions, mainly Quirónsalud, increased sales by 43%. In Q3/2017, sales increased by 47% (4% organic) to €2,166 million (Q3/2016: €1,470 million).
Sales of Helios Kliniken2 increased by 4% (4% organic) to €4,562 million (Q1-3/2016: €4,382 million). In Q3/2017, sales increased by 4% (4% organic) to €1,524 million (Q3/2016: €1,470 million). Quirónsalud has been consolidated since February 1, 2017 and generated sales of €1,860 million (thereof €642 million in Q3/2017).
Fresenius Helios grew EBIT by 52% to €769 million (Q1-3/2016: €507 million). The EBIT margin increased to 12.0% (Q1-3/2016: 11.6%). In Q3/2017, EBIT increased by 33% to €232 million (Q3/2016: €175 million). The EBIT margin decreased to 10.7% (Q3/2016: 11.9%) due to the anticipated lower contribution of Quirónsalud during the summer months.
EBIT of Helios Kliniken2 increased by 8% to €549 million (Q1-3/2016: €507 million) with a margin of 12.0% (Q1-3/2016: 11.6%). In Q3/2017, EBIT of Helios Kliniken2 increased by 9% to €190 million (Q3/2016: €175 million) with a margin of 12.5% (Q3/2016: 11.9%). EBIT of Quirónsalud was €220 million (thereof €42 million in Q3/2017) with a margin of 11.8% (Q3/2017: 6.5%).
Fresenius Helios increased net income1 by 31% to €526 million (Q1-3/2016: €402 million). In Q3/2017, net income1 increased by 9% to €153 million (Q3/2016: €140 million).
Operating cash flow increased by 28% to €560 million (Q1-3/2016: €437 million) driven by the first-time consolidation of Quirónsalud. The margin was 8.7% (Q1-3/2016: 10.0%).
Fresenius Helios confirms its outlook for 2017 and projects organic sales growth of 3% to 5%2 and sales of ~€8.6 billion (thereof Quirónsalud ~€2.5 billion3). EBIT is expected to increase to €1,020 to €1,070 million (thereof Quirónsalud €300 to 320 million3).
1 Net income attributable to shareholders of Fresenius SE & Co. KGaA2 Helios Kliniken Germany, excluding Quirónsalud3 Quirónsalud consolidated for 11 months
Fresenius Vamed
Fresenius Vamed manages projects and provides services for hospitals and other health care facilities worldwide. The portfolio ranges along the entire value chain: from project development, planning, and turnkey construction, via maintenance and technical management, to total operational management.
Sales increased by 1% (1% organic) to €748 million (Q1-3/2016: €740 million). Sales in the project business decreased by 7% to €301 million (Q1-3/2016: €325 million). Sales in the service business grew by 8% to €447 million (Q1-3/2016: €415 million). In Q3/2017, sales remained stable at €267 million (Q3/2016: €268 million).
EBIT increased by 3% to €32 million (Q1-3/2016: €31 million). The EBIT margin increased to 4.3% (Q1-3/2016: 4.2%). In Q3/2017, EBIT of €15 million (margin 5.6%) remained unchanged from previous year’s quarter.
Net income1 remained stable at €21 million (Q1-3/2016: €21 million). In Q3/2017, net income1 remained unchanged at €10 million (Q3/2016: €10 million).
Order intake reached a strong €697 million (Q1-3/2016: €674 million). In Q3/2017 order intake increased by 36% to €285 million. As of September 30, 2017, order backlog grew to an all-time high of €2,345 million (December 31, 2016: €1,961 million).
Fresenius Vamed confirms its outlook for 2017 and expects both organic sales growth and EBIT growth in the range of 5% to 10%.
1 Net income attributable to shareholders of VAMED AG
Conference Call
As part of the publication of the results for the first nine months of 2017, a conference call will be held on November 2, 2017 at 2 p.m. CET (9 a.m. EDT). All investors are cordially invited to follow the conference call in a live broadcast over the Internet at www.fresenius.com/investors. Following the call, a replay will be available on our website.
For additional information on the performance indicators, please refer to our website www.fresenius.com/alternative-performance-measures.
Diese Mitteilung enthält zukunftsbezogene Aussagen, die gewissen Risiken und Unsicherheiten unterliegen. Die zukünftigen Ergebnisse können erheblich von den zur Zeit erwarteten Ergebnissen abweichen, und zwar aufgrund verschiedener Risikofaktoren und Ungewissheiten wie zum Beispiel Veränderungen der Geschäfts-, Wirtschafts- und Wettbewerbssituation, Gesetzesänderungen, Ergebnisse klinischer Studien, Wechselkursschwankungen, Ungewissheiten bezüglich Rechtsstreitigkeiten oder Untersuchungsverfahren und die Verfügbarkeit finanzieller Mittel. Fresenius übernimmt keinerlei Verantwortung, die in dieser Mitteilung enthaltenen zukunftsbezogenen Aussagen zu aktualisieren.
If no timeframe is specified, information refers to Q1-3/2017
Q3/2017:
Q1-3/2017:
Stephan Sturm, CEO of Fresenius, said: “We can report another very good quarter, once again boosted by strong sales and earnings growth. The prospects for our businesses remain excellent. We are therefore confirming our guidance and are heading towards yet another record year. From this position of strength, we intend to swiftly close and integrate our strategically important acquisitions. Thus, we are expanding our range of high-quality, affordable healthcare products and services for the benefit of our patients and our company.“
1 Before acquisition-related expenses
2 Net income attributable to shareholders of Fresenius SE & Co. KGaA
3 Consistent with scope of original guidance: before acquisition-related expenses; before expenditures for further development of biosimilars business
For a detailed overview of adjustments, please see the reconciliation tables on page 15-16 in the pdf document.
2017 Group guidance confirmed
Fresenius confirms its guidance for 2017. Group sales are expected to increase by 15% to 17% in constant currency. Group net income1,2,3 is expected to grow by 19% to 21% in constant currency.
Including the acquisition of Merck KGaA’s biosimilars business and pro forma the acquisition of Akorn, the net debt/EBITDA4 ratio is expected to be approximately 3.3 at the end of 2017.
16% sales growth in constant currency
Group sales increased by 16% (16% in constant currency) to €25,191 million (Q1-3/2016: €21,651 million). Organic sales growth was 6%5 while acquisitions contributed 10%. In Q3/2017, Group sales increased by 12% (15% in constant currency) to €8,297 million (Q3/2016: €7,433 million). Negative currency translation effects (-3%) were mainly related to the devaluation of the US dollar. Organic sales growth was 6% while acquisitions contributed 9%.
1 Net income attributable to shareholders of Fresenius SE & Co. KGaA
2 Before acquisition-related expenses of ~€50 m
3 Before expected expenditures for further development of biosimilars business of ~€60 m
4 Net debt and EBITDA at FY average exchange rates; before acquisition-related expenses of ~€50 m; excluding further potential acquisitions
5 Excluding effects of Fresenius Medical Care’s agreement with the United States Departments of Veterans Affairs and Justice (VA agreement)
For a detailed overview of adjustments, please see the reconciliation tables on page 15-16 in the pdf document.
Group sales by region:
20% adjusted net income2,3 growth in constant currency
Group EBITDA4 increased by 16% (16% in constant currency) to €4,579 million (Q1-3/2016: €3,959 million). Group EBIT4 increased by 15% (15% in constant currency) to €3,522 million (Q1-3/2016: €3,058 million) with an EBIT margin4 of 14.0% (Q1-3/2016: 14.1%). In Q3/2017, Group EBIT4 increased by 5% (9% in constant currency) to €1,129 million (Q3/2016: €1,071 million) with an EBIT margin4 of 13.6% (Q3/2016: 14.4%).
Group net interest4 reached -€484 million (Q1-3/2016: -€433 million). The increase is mainly driven by the financing of the Quirónsalud acquisition.
1 Including effects of VA agreement
2 Net income attributable to shareholders of Fresenius SE & Co. KGaA
3 Consistent with scope of original guidance: before acquisition-related expenses; before expenditures for further development of biosimilars business
4 Before acquisition-related expenses
For a detailed overview of adjustments, please see the reconciliation tables on page 15-16 in the pdf document.
The Group tax rate1 was 28.1% (Q1-3/2016: 28.2%). In Q3/2017, the Group tax rate1 decreased to 27.4% (Q3/2016: 27.9%), mainly driven by a re-evaluation of estimated future tax payments at Fresenius Medical Care.
Noncontrolling interest increased to €854 million (Q1-3/2016: €768 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.
Adjusted Group net income2,3 increased by 20% (20% in constant currency) to €1,339 million (Q1-3/2016: €1,118 million). Adjusted earnings per share2,3 increased by 19% (19% in constant currency) to €2.42 (Q1-3/2016: €2.04). In Q3/2017, adjusted Group net income2,3 increased by 11% (14% in constant currency) to €423 million (Q3/2016: €382 million). Adjusted earnings per share2,3 increased by 11% (14% in constant currency) to €0.77 (Q3/2016: €0.69).
Group net income before acquisition-related expenses1,2 increased by 19% (19% in constant currency) to €1,329 million (Q1-3/2016: €1,118 million). Earnings per share1,2 increased by 18% (18% in constant currency) to €2.40 (Q1-3/2016: €2.04). In Q3/2017, Group net income1,2 increased by 8% (11% in constant currency) to €413 million (Q3/2016: €382 million). Earnings per share1,2 increased by 8% (11% in constant currency) to €0.75 (Q3/2016: €0.69).
Group net income2 increased by 17% (17% in constant currency) to €1,303 million (Q1-3/2016: €1,118 million). Earnings per share2 increased by 15% (15% in constant currency) to €2.35 (Q1-3/2016: €2.04). In Q3/2017, Group net income2 increased by 4% (7% in constant currency) to €396 million (Q3/2016: €382 million). Earnings per share2 increased by 3% (6% in constant currency) to €0.71 (Q3/2016: €0.69).
1 Before acquisition-related expenses
2 Net income attributable to shareholders of Fresenius SE & Co. KGaA
3 Consistent with scope of original guidance: before acquisition-related expenses; before expenditures for further development of biosimilars business
For a detailed overview of adjustments, please see the reconciliation tables on page 15-16 in the pdf document.
Continued investment in growth
Spending on property, plant and equipment was €1,137 million (Q1-3/2016: €1,059 million), primarily for the modernization and expansion of dialysis clinics, production facilities as well as hospitals and day clinics. Total acquisition spending of €6,662 million (Q1-3/2016: €592 million) was mainly related to the acquisitions of Quirónsalud and Merck KGaA’s biosimilars business.
Strong operating cash flow
Operating cash flow increased by 24% to €2,821 million (Q1-3/2016: €2,273 million). The cash flow margin increased to 11.2% (Q1-3/2016: 10.5%). In Q3/2017, operating cash flow increased by 21% to €1,138 million (Q3/2016: €940 million), with a margin of 13.7% (Q3/2016: 12.6%).
Free cash flow before acquisitions and dividends increased by 41% to €1,705 million (Q1-3/2016: €1,206 million). Free cash flow after acquisitions and dividends was -€5,233 million (Q1-3/2016: €252 million).
Solid balance sheet structure
The Group’s total assets increased by 14% (20% in constant currency) to €53,097 million (Dec. 31, 2016: €46,697 million), mainly due to the acquisition of Quirónsalud. Current assets grew by 10% (16% in constant currency) to €12,870 million (Dec. 31, 2016: €11,744 million). Non-current assets increased by 15% (22% in constant currency) to €40,227 million (Dec. 31, 2016: € 34,953 million).
Total shareholders’ equity grew by 2% (10% in constant currency) to €21,167 million (Dec. 31, 2016: €20,849 million). The equity ratio was 39.9% (Dec. 31, 2016: 44.6%).
Group debt increased by 32% (37% in constant currency) to €19,496 million (Dec. 31, 2016: € 14,780 million), mainly driven by the acquisition financing of Quirónsalud. As of September 30, 2017, the net debt/EBITDA ratio was 2.971,2 (Dec. 31, 2016: 2.331; pro forma Quirónsalud 3.091).
1 Net debt and EBITDA at LTM average exchange rates
2 Before acquisition-related expenses
For a detailed overview of adjustments, please see the reconciliation tables on page 15-16 in the pdf document.
Increased number of employees
As of September 30, 2017, the number of employees increased by 17% to 271,676 (Dec. 31, 2016: 232,873).
Business Segments
Fresenius Medical Care
Fresenius Medical Care is the world's largest provider of products and services for individuals with chronic kidney failure. As of September 30, 2017, Fresenius Medical Care was treating 317,792 patients in 3,714 dialysis clinics. Along with its core business, the company seeks to expand the range of medical services in the field of care coordination.
Sales increased by 10% (10% in constant currency, 7% organic) to €13,355 million (Q1-3/2016: €12,153 million). Acquisitions and the agreement with the United States Departments of Veterans Affairs and Justice (VA agreement) contributed 3% in total. In Q3/2017, sales increased by 3% (8% in constant currency, 6% organic) to €4,336 million (Q3/2016: €4,211 million).
Health Care Services sales (dialysis services and care coordination) increased by 11% (10% in constant currency) to €10,950 million (Q1-3/2016: €9,910 million). Product sales increased by 7% (7% in constant currency) to €2,404 million (Q1-3/2016: €2,244 million).
In North America, sales increased by 10% (10% in constant currency) to €9,715 million (Q1-3/2016: €8,828 million). Health Care Services sales grew by 10% (10% in constant currency) to €9,086 million (Q1-3/2016: €8,224 million). Product sales increased by 4% (4% in constant currency) to €629 million (Q1-3/2016: €604 million).
Sales outside North America increased by 9% (10% in constant currency) to €3,628 million (Q1-3/2016: €3,315 million). Health Care Services sales increased by 11% (11% in constant currency) to €1,864 million (Q1-3/2016: €1,686 million). Product sales increased by 8% (8% in constant currency) to €1,764 million (Q1-3/2016: €1,630 million).
1 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
2 Excluding effects of VA agreement and natural disaster costs
EBIT increased by 10% (10% in constant currency) to €1,843 million (Q1-3/2016: €1,679 million). The EBIT margin was 13.8% (Q1-3/2016: 13.8%). In Q3/2017, EBIT was on the prior-year level (increased by 4% in constant currency) at €608 million (Q3/2016: €611 million). Foreign currency effects, lower contributions from the vascular business, higher costs in the pharmacy services business and natural disaster costs in North America negatively impacted EBIT, while organic growth and lower research and development expenses contributed positively. The EBIT margin was 14.0% (Q3/2016: 14.5%).
Net income1 increased by 13% (14% in constant currency) to €886 million (Q1-3/2016: €781 million). Consistent with the original scope of guidance, i.e. excluding the effects of the VA agreement and natural disaster costs, net income1 increased by 8% in constant currency. In Q3/2017, net income1 grew by 2% (6% in constant currency) to €309 million (Q3/2016: €304 million). Excluding the effects of the VA agreement and natural disaster costs, net income1 increased by 5% (8% in constant currency).
Operating cash flow increased by 43% to €1,664 million (Q1-3/2016: €1,160 million). The cash flow margin increased to 12.5% (Q1-3/2016: 9.5%). In Q3/2017, operating cash flow increased by 56% to €612 million (Q3/2016: €393 million) with a cash flow margin of 14.1% (Q3/2016: 9.3%). The increase is primarily attributable to last year’s cash contribution to a pension plan in the United States as well as other working capital items.
Fresenius Medical Care confirms its outlook for 2017. The company expects sales to grow by 8% to 10%2 in constant currency. Net income1,3 is expected to increase by 7% to 9% in constant currency.
For further information, please see Fresenius Medical Care’s Investor News at www.freseniusmedicalcare.com.
1 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
2 Excluding effects of VA agreement
3 Excluding effects of VA agreement and natural disaster costs
Fresenius Kabi
Fresenius Kabi offers intravenously administered generic drugs, clinical nutrition and infusion therapies for seriously and chronically ill patients in the hospital and outpatient environments. The company is also a leading supplier of medical devices and transfusion technology products.
Sales increased by 7% (7% in constant currency, 7% organic) to €4,764 million (Q1-3/2016: €4,457 million). Acquisitions/divestitures had no meaningful impact on sales. In Q3/2017, sales increased by 3% (7% in constant currency, 7% organic) to €1,562 million (Q3/2016: €1,511 million). Negative currency translation effects (-4%) were mainly related to the devaluation of the US dollar and the Chinese yuan against the Euro.
Sales in Europe increased by 4% (5% organic) to €1,635 million (Q1-3/2016: €1,569 million). In Q3/2017, sales increased by 3% (4% organic) to €538 million (Q3/2016: €521 million).
Sales in North America increased by 7% (6% organic) to €1,736 million (Q1-3/2016: €1,628 million). In Q3/2017, sales increased by 1% (7% organic) to €549 million (Q3/2016: €542 million).
Sales in Asia-Pacific increased by 9% (11% organic) to €894 million (Q1-3/2016: €821 million). In Q3/2017, sales increased by 8% (12% organic) to €312 million (Q3/2016: €290 million).
Sales in Latin America/Africa increased by 14% (10% organic) to €499 million (Q1-3/2016: €439 million). In Q3/2017, sales increased by 3% (8% organic) to €163 million (Q3/2016: €158 million).
1 Before acquisition-related expenses
2 Consistent with scope of original guidance: before acquisition-related expenses; before expenditures for further development of biosimilars business
3 Net income attributable to shareholders of Fresenius SE & Co. KGaA
For a detailed overview of adjustments, please see the reconciliation tables on page 15-16 in the pdf document.
Adjusted EBIT1 increased by 6% (7% in constant currency) to €919 million (Q1-3/2016: €863 million). The adjusted EBIT margin1 was 19.3% (Q1-3/2016: 19.4%). In Q3/2017, adjusted EBIT1 increased by 6% (11% in constant currency) to €297 million (Q3/2016: €281 million), despite expenses related to hurricane Maria on Puerto Rico. The adjusted EBIT margin1 increased to 19.0% (Q3/2016: 18.6%).
EBIT2 increased by 5% (6% in constant currency) to €905 million (Q1-3/2016: €863 million). The EBIT margin2 was 19.0% (Q1-3/2016: 19.4%). In Q3/2017, EBIT2 increased by 1% (6% in constant currency) to €283 million (Q3/2016: €281 million). Given the €14 million expenditure for the further development of the biosimilars business, the EBIT margin2 decreased to 18.1% (Q3/2016: 18.6%).
Adjusted net income1,3 increased by 13% (14% in constant currency) to €554 million (Q1-3/2016: €491 million). In Q3/2017, adjusted net income1,3 increased by 13% (19% in constant currency) to €175 million (Q3/2016: €155 million).
While operating cash flow reached a very strong €640 million, it could not match the exceptional prior-year figure (Q1-3/2016: €661 million). The same applied to the strong margin of 13.4% (Q1-3/2016: 14.8%). In Q3/2017, operating cash flow reached a healthy €245 million (Q3/2016: €322 million) despite a cash prepayment for the biosimilars business and adverse currency translation effects. The cash flow margin was 15.7% (Q3/2016: 21.3%). Excluding the prepayment, operating cash flow was €290 with a margin of 18.6%.
Fresenius Kabi confirms its outlook for 2017 and expects 5% to 7% organic sales growth and EBIT growth in constant currency of 6% to 8%4,5.
1 Consistent with scope of original guidance: before acquisition-related expenses; before expenditures for further development of biosimilars business
2 Before acquisition-related expenses
3 Net income attributable to shareholders of Fresenius SE & Co. KGaA
4 Before acquisition-related expenses of ~€50 m
5 Before expected expenditures for further development of biosimilars business of ~€60 m
For a detailed overview of adjustments, please see the reconciliation tables on page 15-16 in the pdf document.
Fresenius Helios
Fresenius Helios is Europe's leading private hospital operator. The company comprises Helios Kliniken in Germany and Quirónsalud in Spain. Helios Kliniken operates 111 hospitals, thereof 88 acute care clinics and 23 post-acute care clinics, and treats more than 5.2 million patients annually. Quirónsalud operates 44 hospitals, 44 outpatient centers and around 300 occupational risk prevention centers, and treats approximately 9.7 million patients per year.
Fresenius Helios increased sales by 47% (4% organic) to €6,422 million (Q1-3/2016: €4,382 million). Acquisitions, mainly Quirónsalud, increased sales by 43%. In Q3/2017, sales increased by 47% (4% organic) to €2,166 million (Q3/2016: €1,470 million).
Sales of Helios Kliniken2 increased by 4% (4% organic) to €4,562 million (Q1-3/2016: €4,382 million). In Q3/2017, sales increased by 4% (4% organic) to €1,524 million (Q3/2016: €1,470 million). Quirónsalud has been consolidated since February 1, 2017 and generated sales of €1,860 million (thereof €642 million in Q3/2017).
Fresenius Helios grew EBIT by 52% to €769 million (Q1-3/2016: €507 million). The EBIT margin increased to 12.0% (Q1-3/2016: 11.6%). In Q3/2017, EBIT increased by 33% to €232 million (Q3/2016: €175 million). The EBIT margin decreased to 10.7% (Q3/2016: 11.9%) due to the anticipated lower contribution of Quirónsalud during the summer months.
EBIT of Helios Kliniken2 increased by 8% to €549 million (Q1-3/2016: €507 million) with a margin of 12.0% (Q1-3/2016: 11.6%). In Q3/2017, EBIT of Helios Kliniken2 increased by 9% to €190 million (Q3/2016: €175 million) with a margin of 12.5% (Q3/2016: 11.9%). EBIT of Quirónsalud was €220 million (thereof €42 million in Q3/2017) with a margin of 11.8% (Q3/2017: 6.5%).
Fresenius Helios increased net income1 by 31% to €526 million (Q1-3/2016: €402 million). In Q3/2017, net income1 increased by 9% to €153 million (Q3/2016: €140 million).
Operating cash flow increased by 28% to €560 million (Q1-3/2016: €437 million) driven by the first-time consolidation of Quirónsalud. The margin was 8.7% (Q1-3/2016: 10.0%).
Fresenius Helios confirms its outlook for 2017 and projects organic sales growth of 3% to 5%2 and sales of ~€8.6 billion (thereof Quirónsalud ~€2.5 billion3). EBIT is expected to increase to €1,020 to €1,070 million (thereof Quirónsalud €300 to 320 million3).
1 Net income attributable to shareholders of Fresenius SE & Co. KGaA
2 Helios Kliniken Germany, excluding Quirónsalud
3 Quirónsalud consolidated for 11 months
Fresenius Vamed
Fresenius Vamed manages projects and provides services for hospitals and other health care facilities worldwide. The portfolio ranges along the entire value chain: from project development, planning, and turnkey construction, via maintenance and technical management, to total operational management.
Sales increased by 1% (1% organic) to €748 million (Q1-3/2016: €740 million). Sales in the project business decreased by 7% to €301 million (Q1-3/2016: €325 million). Sales in the service business grew by 8% to €447 million (Q1-3/2016: €415 million). In Q3/2017, sales remained stable at €267 million (Q3/2016: €268 million).
EBIT increased by 3% to €32 million (Q1-3/2016: €31 million). The EBIT margin increased to 4.3% (Q1-3/2016: 4.2%). In Q3/2017, EBIT of €15 million (margin 5.6%) remained unchanged from previous year’s quarter.
Net income1 remained stable at €21 million (Q1-3/2016: €21 million). In Q3/2017, net income1 remained unchanged at €10 million (Q3/2016: €10 million).
Order intake reached a strong €697 million (Q1-3/2016: €674 million). In Q3/2017 order intake increased by 36% to €285 million. As of September 30, 2017, order backlog grew to an all-time high of €2,345 million (December 31, 2016: €1,961 million).
Fresenius Vamed confirms its outlook for 2017 and expects both organic sales growth and EBIT growth in the range of 5% to 10%.
1 Net income attributable to shareholders of VAMED AG
Conference Call
As part of the publication of the results for the first nine months of 2017, a conference call will be held on November 2, 2017 at 2 p.m. CET (9 a.m. EDT). All investors are cordially invited to follow the conference call in a live broadcast over the Internet at www.fresenius.com/media-calendar. Following the call, a replay will be available on our website.
For additional information on the performance indicators, please refer to our website www.fresenius.com/alternative-performance-measures.
This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.
Key figures (IFRS)
| EUR million | Q3 2017 | Growth yoy | Growth yoy at constant currency |
| Revenue | 4,336 | 3% | 8% |
| Adjusted revenue1 | 4,339 | 3% | 8% |
| Operating income (EBIT) | 609 | 0% | 4% |
| Adjusted operating income (EBIT)1,2 | 624 | 2% | 6% |
| Net income3 | 309 | 2% | 6% |
| Adjusted net income1,2,3 | 319 | 5% | 8% |
| Basic earnings per share (in EUR) | 1.01 | 1% | 6% |
| Adjusted basic earnings per share (in EUR)1,2 | 1.04 | 5% | 8% |
1 Adjusted for the exchange rate impact on the effects of the agreement with the U.S. Departments of Veterans Affairs and Justice on outstanding payments
2 Adjusted for the cost effects, net of anticipated recoveries from natural disasters in North America (natural disaster costs)
3 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
Rice Powell, Chief Executive Officer of Fresenius Medical Care, stated: “This was a very challenging quarter for many of our patients and employees in North America. Thanks to the spirit and commitment of our employees, we were able to provide dialysis to patients under extreme circumstances in the disaster areas. I am very proud of what our team has achieved in helping both patients and employees. We delivered a solid quarter despite the effects from several natural disasters.”
Revenue & Earnings
Revenue for the third quarter improved by 3% to EUR 4,336 million (+8% at constant currency). Health Care Services revenue of EUR 3,532 million (+8% at constant currency) was supported by an increase in organic revenue from Care Coordination, same-market treatment growth in dialysis services and contributions from acquisitions. Health Care Products revenue increased by 4% to EUR 804 million (+8% in constant currency) in the third quarter, mainly driven by higher sales of dialyzers, machines, peritoneal dialysis products, renal pharmaceuticals, bloodlines and products for acute care. Revenue in the first nine months of 2017 increased by 10% to EUR 13,355 million. Health Care Services revenue grew by 11% (+10% at constant currency), while Health Care Products revenue increased by 7% (+7% at constant currency).
In the third quarter, operating income (EBIT) was stable at EUR 609 million (+4% at constant currency). Foreign currency effects had a negative impact on the performance worldwide. In addition, lower contributions from the vascular business, higher costs in the pharmacy services business and natural disaster costs in North America negatively impacted EBIT, while organic growth and lower research and development expenses had a positive impact. The EBIT margin fell by 50 basis points to 14.0%. For the year’s first nine months, EBIT increased by 10% to EUR 1,843 million.
Net interest expense in the third quarter was EUR 86 million, compared to EUR 90 million in the third quarter of 2016. The reduction was driven by a favorable foreign currency translation effect. At constant exchange rates, net interest expense remained stable. For the first nine months of 2017, net interest expense decreased by 1% to EUR 274 million.
Income tax expense was stable at EUR 152 million in the third quarter. This translates into an effective tax rate of 29.0%, a decrease of 20 basis points compared with the third quarter of 2016 (29.2%). Income taxes in both periods were favorably impacted by adjustments of tax liabilities which are regularly reviewed to reflect resolved matters or new information. For the first nine months of 2017, income tax expense increased to EUR 484 million, translating into an effective tax rate of 30.8% (+40 basis points).
Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 2% to EUR 309 million in the third quarter (+6% at constant currency). Excluding the 2017 impact from (i) the adjustment for the exchange rate impact on the effects of the agreement with the U.S. Departments of Veterans Affairs and Justice, and (ii) the impact from natural disaster costs in North America, net income increased to EUR 319 million (+5%, +8% at constant currency) in the third quarter. Based on approximately 306.6 million shares (weighted average number of shares outstanding), basic earnings per share (EPS) increased from EUR 0.99 to EUR 1.01 (+1%). EPS excluding the two effects described above increased to EUR 1.04 (+5%).
For the first nine months of 2017, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 13% to EUR 886 million. Adjusted for the impact from the agreement with the U.S. Departments of Veterans Affairs and Justice and the natural disaster costs, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was at EUR 842 million (+8%). Basic EPS improved by the same rate, to EUR 2.89. Adjusted for the two effect described before, EPS was at EUR 2.75 (+8%).
Segment development
In the third quarter, North America revenue increased by 2% to EUR 3,115 million. Health Care Services revenue grew by 2% to EUR 2,904 million (+8% at constant currency), of which Care Coordination contributed EUR 705 million (+20%, 26% at constant currency), supported by significant organic revenue growth. Dialysis care revenue decreased by 2% to EUR 2,199 million (+3% at constant currency). Dialysis treatments increased by 3%. Revenue per treatment in the United States was up by $2 to $352 while cost per treatment increased $6 to $284, largely driven by higher personnel expense, the impact from natural disaster costs and a higher bad debt expense. Health Care Products revenue grew by 1% to EUR 211 million (+6% at constant currency). The growth at constant currency was mainly driven by higher sales of peritoneal dialysis products, machines and renal drugs.
Operating income in North America came in 1% lower at EUR 483 million (+4% at constant currency). The operating income margin of 15.5% (16.0% adjusted for natural disaster costs) was ahead of the second quarter of 2017, but weaker than the previous year’s third quarter (-60 basis points). This decline was attributable to natural disaster costs, higher personnel expense and increased costs for supply, rent and bad debt, as well as lower income from equity method investees, partially offset by lower costs for healthcare supplies and the prior-year cost impact related to the vesting of long-term incentive grants. The EBIT margin in Care Coordination came in at 6.6% (6.7% adjusted for natural disaster costs), a strong increase of 150 basis points over the third quarter of 2016.
For the first nine months of 2017, North America revenue increased by 10% to EUR 9,715 million (+10% at constant currency). Operating income increased in line with revenue growth to EUR 1,478 million (+9% at constant currency).
EMEA revenue increased by 5% to EUR 632 million (+6% at constant currency). Health Care Services revenue for the EMEA segment increased by 4% to EUR 311 million (+5% at constant currency). This was mainly the result of growth in same market treatments and contributions from acquisitions, partially offset by decreases in organic revenue per treatment. Dialysis treatments increased by 4%. Health Care Products revenue increased by 5% (+7% at constant currency) to EUR 321 million. The growth in dialysis products was driven by higher sales of dialyzers and products for peritoneal dialysis and acute care. Non-dialysis products grew by 58% to EUR 19 million principally due to the acquisition of Xenios.
Operating income in the EMEA segment decreased by 5% to EUR 106 million in the third quarter (+6% at constant currency) due to planned investments in Xenios, foreign currency transaction losses and lower income from equity method investees, as well as pressure on reimbursement in some countries partially offset by the favorable impact from a legal settlement and lower bad debt expense. The operating income margin decreased to 16.8% (-180 basis points).
For the first nine months of 2017, EMEA revenue increased by 6% to EUR 1,888 million (+6% at constant currency) and operating income decreased by 6% to EUR 333 million (+6% at constant currency).
Asia-Pacific revenue grew by 7% (+14% at constant currency) to EUR 411 million in the third quarter. With growth of +12% (+21% at constant currency) the region recorded EUR 194 million in Health Care Services revenue, mainly driven by the acquisition impact from Cura Group in Australia. Dialysis treatments increased by 7%. With a 4% growth in revenue to EUR 217 million (+9% at constant currency), the Health Care Product business increased sales of machines, dialyzers, bloodlines and peritoneal dialysis products.
Operating income showed a slight increase (+1%) to EUR 77 million (+7% at constant currency). The operating income margin was at 18.8% (-110 basis points). This was primarily driven by an unfavorable mix effect related to acquisitions with lower margins and the impact from foreign currency transaction effects.
For the first nine months of 2017, Asia-Pacific revenue grew by 12% to EUR 1,206 million (+13% at constant currency) and operating income increased by 17% to EUR 237 million (+18% at constant currency).
Latin America delivered revenue of EUR 175 million, an increase of 2% (+11% at constant currency). Health Care Services revenue decreased by 1% to EUR 123 million. The growth of 11% at constant currency was a result of higher organic revenue per treatment and contributions from acquisitions. Dialysis treatments increased by 1%.
Health Care Products revenue increased by 9% to EUR 52 million (+13% at constant currency), as a result of higher sales of machines and disposables, partially offset by lower sales of renal pharmaceuticals.
Operating income came in at the previous year’s level of EUR 18 million (+6% at constant currency), impacted by unfavorable foreign currency effects and higher costs primarily related to inflation but mainly compensated by higher reimbursement rates. The operating margin was at last year’s level of 10.2% (-20 basis points).
For the first nine months of 2017, Latin America revenue grew by 15% to EUR 535 million (+15% at constant currency) and operating income increased by 6% to EUR 45 million (+10% at constant currency).
Cash flow
In the third quarter of 2017, the company generated EUR 612 million (Q3 2016: EUR 393 million) in net cash provided by operating activities, representing a strong improvement to 14.1% of revenue (Q3 2016: 9.3%). The increase is primarily attributable to last year’s cash contribution to a pension plan in the United States, as well as other working capital items. Free cash flow was also very strong at EUR 386 million, compared to EUR 182 million for the third quarter of 2016.
In the first nine months of 2017, the company generated net cash provided by operating activities of EUR 1,664 million, representing 12.5% of revenue.
Employees
As of September 30, 2017, Fresenius Medical Care had 113,648 employees (full-time equivalents) worldwide, compared with 108,851 employees at the end of September 2016. This increase of 4% was primarily attributable to our continued organic growth and acquisitions.
Recent events
In August 2017, Fresenius Medical Care signed a merger agreement to acquire NxStage Medical, Inc., a U.S.-based medical technology and services company. The planned acquisition has a total transaction volume of approximately EUR 1.7 billion (USD 2.0 billion). On October 27, shareholders of NxStage approved the acquisition by Fresenius Medical Care. The completion of the acquisition is subject to regulatory approvals and other customary closing conditions. Closing is currently expected to occur in 2018.
In September 2017, Fresenius Medical Care announced the divestment of Shiel Medical Laboratory, which provides non-renal lab services. Closing of the transaction is subject to regulatory approvals and anticipated in the fourth quarter of 2017.
Outlook 2017 confirmed
Excluding the effects from natural disaster costs and the effects of the agreement with the U.S. Departments of Veterans Affairs and Justice, Fresenius Medical Care confirms its full-year outlook 2017. The company expects revenue growth between +8% and +10% at constant currency. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by +7% to +9% at constant currency over the previous year
Conference call
Fresenius Medical Care will hold a conference call to discuss the results of the third quarter & first nine months of 2017 on Thursday, November 2, 2017 at 3:30 p.m. CET/ 10:30 a.m. EDT. The company invites investors to follow the live webcast of the call on the company’s website www.freseniusmedicalcare.com in the “Investors/Events” section. A replay will be available shortly after the call.
Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,714 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 317,792 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).
For more information visit the Company’s website at www.freseniusmedicalcare.com.
Disclaimers
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release. The statements contained in this document are solely those of Fresenius Medical Care and do not necessarily reflect the views or policies of CMS. Fresenius Medical Care assumes responsibility for the accuracy and completeness of the information contained in this document.
Fresenius Medical Care, the world's largest provider of dialysis products and services, today announced that company researchers and clinical experts from across the globe present 77 research abstracts at the 2017 American Society of Nephrology’s (ASN) Kidney Week Symposium, the largest and most influential meeting of kidney professionals in the world.
Scheduled from October 31 to November 5, 2017, in New Orleans, Louisiana, USA, the annual symposium draws more than 13,000 physicians, scientists and healthcare professionals from over 100 countries.
“Our ability to harness the power of research across our global enterprise is one of our many competitive advantages,” said Rice Powell, Chairman and Chief Executive Officer of Fresenius Medical Care. “Staying at the forefront of science drives our innovation and is central to better clinical outcomes in our core dialysis as well as in care coordination activities.”
The scope of the company’s research and quality improvement endeavours builds on Fresenius Medical Care’s strength as the world’s largest, vertically integrated healthcare company. With a focus on chronic kidney disease (CKD), end-stage renal disease (ESRD) and adjacent medical conditions, the company’s research crosses seven general categories:
“The breadth and depth of our leadership in advancing science into clinical practice underscores our mission to improve the lives of people with kidney and chronic diseases,” said Franklin W. Maddux, MD, Chief Medical Officer and Executive Vice President of Clinical and Scientific Affairs for Fresenius Medical Care North America. “In blending patient perspectives with real world evidence and traditional research, we are able to translate science into clinical practice that ultimately improves the lives of the patients who entrust us with their care.”
Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,690 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 315,305 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).
For more information visit the Company’s website at www.freseniusmedicalcare.com.
Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.
Operation at a Helios hospital.
At today’s Special Meeting, the stockholders of NxStage Medical, Inc. approved the adoption of the previously announced merger agreement with Fresenius Medical Care, with approximately 72% of outstanding shares having voted in favor of the transaction. This corresponds to approximately 94% of the votes cast at the Special Meeting. The approval of the merger agreement fulfills an important condition for the full acquisition of NxStage Medical, Inc. The transaction remains subject to additional customary closing conditions, including regulatory review under the Hart-Scott-Rodino Antitrust Improvements Act in the United States.
Through the acquisition of NxStage, Fresenius Medical Care aims at further growth in home dialysis and in the critical care area. On August 7, 2017, Fresenius Medical Care announced it would acquire NxStage (NASDAQ: NXTM), a U.S.-based medical technology company focused on advancing renal care, for USD 30.00 per share, equivalent to a total transaction value of approximately EUR* 1.7 billion (USD 2.0 billion).
*Based on an exchange rate of 0.849 USD/EUR as per 5 August 2017.
Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 3 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,690 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 315,305 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of related medical services in the field of Care Coordination. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).
For more information visit the Company’s website at www.freseniusmedicalcare.com.
Disclaimer
This release contains forward-looking statements, including statements regarding Fresenius Medical Care’s planned acquisition of NxStage Medical, Inc. and the expected timing of the closing of the transaction. Actual results could differ materially from those expressed or implied in these forward-looking statements due to certain factors, including, among others: the failure or inability of either Fresenius Medical Care or NxStage Medical, Inc. to satisfy closing conditions or obtain approvals necessary to close the transaction; unexpected costs or delays associated with efforts to obtain the regulatory or other approvals necessary to close the transaction; risks associated with litigation or regulatory actions related to the transaction; changes in business, economic and competitive conditions; regulatory reforms; foreign exchange rate fluctuations; risks and uncertainties in litigation or investigative proceedings, whether or not related to the transaction; and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA’s reports filed with the United States Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.
November 02, 2017 - 03:30 pm - 00:00 am
Bad Homburg, Germany
Fresenius Vamed has opened the Institute for Gender Medicine in cooperation with the Medical University of Vienna. This new research institute, in the Lower Austria town of Gars am Kamp, will focus on the different needs of female and male patients, for example in the interpretation of disease symptoms. Fresenius Vamed will be able to use the institute’s research findings to develop tailored treatment offerings in areas such as prevention and rehabilitation. The Institute for Gender Medicine complements initiatives for individualized medical care already being carried out by the VAMED International Medical Board and its approximately 650 physicians.
Fresenius Vamed has opened the Institute for Gender Medicine in cooperation with the Medical University of Vienna. This new research institute, in the Lower Austria town of Gars am Kamp, will focus on the different needs of female and male patients, for example in the interpretation of disease symptoms. Fresenius Vamed will be able to use the institute’s research findings to develop tailored treatment offerings in areas such as prevention and rehabilitation. The Institute for Gender Medicine complements initiatives for individualized medical care already being carried out by the VAMED International Medical Board and its approximately 650 physicians.
