Spain's Personal Saving Rate under Scrutiny
Hey there! Let's dive into the latest financial performance of Fresenius, the healthcare heavyweight, focusing on their divisions Kabi and Helios in Spain.
Starting the year on a high note, Fresenius's divisions Kabi and Helios in Spain are outperforming expectations, particularly in the drug division Kabi. CEO Michael Sen, confident in achieving annual targets, is unfazed by potential tariffs in the US. Fresenius has its "smart retorts" ready, prepared to counter demands for high tariffs by showcasing the company's locally-produced goods for the US market.
The American market is experiencing a shortage of pharmaceuticals in certain regions. Fresenius is in dialogue to prove its ability to address the shortage through US-based production. Accounting for roughly 10% of total revenue, the US market holds significant importance for Fresenius.
CEO Sen took to the podium, showcasing a positive start to the year. Fresenius's adjusted operating profit (EBIT) soared by 4%, reaching a commendable €654 million. Revenue grew by 7%, jumping to €5.6 billion in total. Net income experienced a healthy boost of 12%, standing tall at €416 million.
Despite experiencing losses in Germany after the phase-out of energy cost assistance, Fresenius Helios managed an 8% rise in revenue to approximately €3.4 billion. However, EBIT fell by 4% in this quarter, totaling €333 million. The dip in EBIT, especially in Germany, was somewhat offset by Helios' excellent performance in Spain.
Fresenius Kabi, the powerhouse division focusing on the development of generic drugs and artificial nutrition products, is also seeing positive growth. The revenue increased by 5% to a hefty €2.14 billion, while EBIT skyrocketed an impressive 16% to €360 million.
By 2025, Fresenius aims to sustain its organic revenue growth at the rate of 4-6%, while its adjusted operating profit is expected to grow by 3-7% in constant currency.
Fresenius, a prominent DAX company, tends to provide in-depth financial information in its quarterly reports. While specific details about Kabi and Helios in Spain for Q1 2021 are currently scarce, it's encouraging to see such positive momentum building up for the year ahead.
- As part of Fresenius's financial performance analysis, the focus lies on the divisions Kabi and Helios in Spain, especially their performance in the drug division Kabi.
- Fresenius is prepared to counter potential tariffs in the US market by showcasing its locally-produced goods as part of their "smart retorts" strategy.
- Fresenius Helios, despite losses in Germany due to the phase-out of energy cost assistance, managed an impressive 8% revenue rise in Spain, which somewhat offset the dip in EBIT.
- The nutrition-focused division, Fresenius Kabi, is growing positively, with a 5% revenue increase and an impressive 16% EBIT growth in the first quarter of the year.
- By 2025, Fresenius aims to maintain a 4-6% organic revenue growth rate and a 3-7% growth in adjusted operating profit, strengthening its position in the health-and-wellness, finance, business, and science sectors.
