Group and segment outlook 2024

Fresenius upgrades its outlook for FY/24¹. Based on the excellent first nine months of 2024, Group organic revenue growth^2,4,5 is now expected to grow between 6% to 8% (previous: between 4% to 7%) in 2024 and Group constant currency EBIT^3,4 is anticipated to grow in a 8% to 11% range (previous: between 6% to 10%).

Fresenius Kabi expects organic revenue growth⁵ in a mid-to high-single-digit percentage range in 2024. The EBIT margin⁴ is expected to be in a range of 15% to 16% (structural margin band: 14% to 17%). 

Fresenius Helios expects organic revenue⁴ to grow in mid-single digit percentage range in 2024. The EBIT margin⁴ is expected to be within 10% to 11% (structural margin band: 10% to 12%). 

The Group outlook is given without Fresenius Vamed, i.e. exclusively for the Operating Companies Fresenius Kabi and Fresenius Helios. 

 ¹ For the prior-year basis please see table “Basis for Guidance for 2024"
 ² 2023 base: €20,307 million
 ³ 2023 base: €2,266 million 
 ⁴ Before special items
⁵  Organic growth rate adjusted for accounting effects related to Argentina hyperinflation

Fresenius is a global healthcare group, comprised of the Operating Companies Fresenius Kabi and Fresenius Helios (each with 100% ownership share) and the Investment Company Fresenius Medical Care.  

Our Operating Companies put our focus on system-critical healthcare products and services for leading therapies into effect and are geared towards profitability optimization and growth. In line with the role of Fresenius as significant shareholder, our Investment Company will be focused on financial value management.

At Fresenius, we offer system-critical products and services for therapies of care for critically and chronically ill patients. We continuously improve the quality and efficiency of healthcare, giving a growing number of people access to world-class therapies. We are always looking for even better solutions and thus contribute to medical progress.
 

Megatrends in Healthcare

We take advantage of significant paradigm shifts in the healthcare environment with regards to biologic products and therapies, technological change and new forms of data generation, processing and usage. The healthcare sector is one of the world’s largest industries and we are convinced that it demonstrates excellent growth opportunities. We want to be at the forefront of these trends and have thus charted our course to continued system relevance in our businesses.

Advancing patient care

The health and well-being of patients is Fresenius‘ top priority. We have been saving and improving the lives of critically and chronically ill people for more than 100 years. 

Our goal is to expand Fresenius’ position as a leading global provider of therapies for critically and chronically ill people. At the same time, we want to grow profitably and use our capital efficiently, in order to create value for our stakeholders and enable us to continue investing in better medicine. 

In 2023, we have executed a comprehensive diagnosis of our Group portfolio at sub-segment level, in order to highlight growth opportunities aligned with market trends. As part of this process, we further refined our management approach for each of our businesses and identified areas to strengthen our portfolio focus. Going forward, we want to increasingly orient our portfolio to three platforms: 

• (Bio)Pharma including clinical nutrition
• MedTech 
• Care Provision

With these platforms, we cater to major trends in healthcare and become a more therapy-focused company. The health and quality of life of our patients who we serve with high-quality, affordable products and services is at the core. At the same time, our platforms address attractive value pools in healthcare, which will provide opportunities for future profitable growth.

Our path to #FutureFresenius

In 2022, we launched #FutureFresenius to embark on a transformative journey and provide a clear direction for the next decades. We made great progress over 2023, particularly in the structural progression of the Group. With the deconsolidation of Fresenius Medical Care and targeted divestments, we sharpened the focus of the portfolio and achieved structural simplification. Our new corporate structure places a clear focus on our Operating Companies Fresenius Kabi and Fresenius Helios. Both businesses have attractive market positions and excellent opportunities for profitable growth. Clear structures and responsibilities were also defined with the initiation of a new operating model. Our new Fresenius Financial Framework will enable us to monitor and improve performance in a more targeted manner. 

• RESET: As a first step of this journey, we simplified our group structure, optimized our financial management system, and created change momentum across the organization.
• REVITALIZE: Now we want to gear up for continuous portfolio optimization and the pursuit of growth verticals. 
• REJUVENATE: At this stage we will make use of value-generating growth verticals to reinforce and expand our platforms. 
• REIMAGINE: Our further enhanced capabilities will allow us to actively shape the future of healthcare in the REIMAGINE phase.

 

¹ UN Ageing & Health (2021) ² OECD Health at a Glance (2019)³ Global Burden of Disease, Institute for Health Metrics and Evaluation (2022) ⁴ WHO Health Workforce (2023)

The following charts describe the shareholder structure of Fresenius SE & Co. KGaA (as of June 30, 2024). The Else Kröner-Fresenius-Stiftung is the largest shareholder of Fresenius SE & Co. KGaA, with 27% of the shares. In addition, we received several notifications pursuant to the German Securities Trading Act (WpHG) as listed below.        

  

   

Full text of the publications in accordance with Section 40 German Securities Trading Act (WpHG) (until January 2, 2018, in accordance with Section 26 WpHG) :

With the Fresenius Financial Framework we aim to generate attractive and predictable dividend yields. In line with our progressive dividend policy, we aim to increase the dividend in line with earnings per share growth (before special items, in constant currency) but at least maintain the dividend at the prior-year's level.

Dividend 2023

In 2023, the Fresenius Management Board decided to make use of the compensation and reimbursement payments for German hospitals in the amount of up to €300 million (from the current perspective) provided for by the ‘Energy Relief Package’ (‘Entlastungspaket Energiehilfen’) under the Hospital Financing Act (‘Krankenhausfinanzierungsgesetz’) to cover increased energy costs. This meant that Fresenius was subject to the related restrictions imposed by the legislator, including not being allowed to distribute a dividend for the 2023 fiscal year.

Notwithstanding the legally required suspension of dividend payments for the fiscal year 2023, Fresenius maintains its dividend policy for the future. Further information on the announcement can be found here.