Fresenius Medical Care sets record with dividend hike

BAD HOMBURG, Germany - Fresenius Medical Care AG (FME), a leading global provider of kidney care products and services with a market capitalization of $17.5 billion, announced significant financial achievements and strategic advancements during its recent Annual General Meeting. The company, which operates a vast network of dialysis clinics worldwide, reported a 21 percent increase in its annual dividend, reaching 1.44 Euro per share for the 2024 fiscal year, the highest in its history. According to InvestingPro data, the stock has delivered an impressive 38% return over the past year, significantly outperforming broader market indices.

The increase in dividend comes on the back of a strong financial performance in 2024, with organic revenue growth of 4 percent and an 18 percent increase in operating income, placing the results at the upper end of the company’s projections. These figures indicate that Fresenius Medical Care is on track for double-digit earnings growth and an 11-12 percent margin in 2025. InvestingPro analysis shows the company maintains a healthy financial position with a "GOOD" overall health score, supported by strong price momentum and profitability metrics. Get access to 8 additional exclusive ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.

The company’s CEO, Helen Giza, attributed the success to the FME25 transformation program, which aims to save 750 million Euro by year-end, a 50 percent increase over the initial target. With a current EBITDA of $2.6 billion and a gross profit margin of 24.5%, the company’s efficiency initiatives appear to be yielding results. Giza also highlighted the FDA’s 510(k) clearance for the 5008X dialysis machine, a first in the U.S. market for high-volume hemodiafiltration therapy.

Shareholders displayed their support with a clear majority of 96.85 percent approving the dividend proposal. Additionally, the AGM endorsed the compensation report for the Management and Supervisory Boards, renewed authorizations for capital increases, and granted approval for the issuance of bonds, all with substantial majorities.

Fresenius Medical Care emphasized its commitment to maintaining high standards in dialysis treatment and the well-being of millions of patients with kidney diseases. The company’s strategic realignments, including debt reduction and the creation of two global operating segments—Care Delivery and Care Enablement—have been cited as key factors contributing to its strong performance.

The AGM also marked the approval of actions for both the Management Board and the Supervisory Board with majorities of 99.06 percent and 99.80 percent, respectively. Fresenius Medical Care is listed on both the Frankfurt Stock Exchange (FME) and the New York Stock Exchange (FMS).

This article is based on a press release statement from Fresenius Medical Care.

In other recent news, Fresenius Medical Care reported strong financial results for the fourth quarter of 2024, showing a 31% increase in operating income and a 5% rise in revenue. The company achieved the upper end of its earnings outlook for the year, with an improved operating income margin of 9.6%. Fresenius Medical Care also secured FDA approval for its 508x hemodialysis machine, which is expected to enhance its U.S. market presence. Additionally, the FME25 transformation program has increased its savings target to €750 million, reflecting the company’s focus on cost-saving initiatives. The company anticipates positive to low single-digit revenue growth for 2025, with operating income growth expected in the high teens to high 20s. CEO Helen Giese expressed optimism for future growth, particularly with the integration of phosphate binders into the clinic bundle, which is expected to provide a €100 million benefit in 2025. Despite these promising developments, the company faces potential challenges, including elevated mortality rates in the U.S. dialysis market and labor cost inflation.

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