Fresenius raises full-year revenue guidance after strong Q2 results

Investing.com -- German healthcare group Fresenius SE (ETR:FREG) on Wednesday raised its full-year revenue guidance following strong second-quarter results driven by growth in its Kabi division and solid performance in its Helios hospital unit.

The company now expects organic revenue growth of 5-7% for fiscal year 2025, up from its previous forecast of 4-6%, while maintaining its adjusted EBIT growth target of 3-7% at constant exchange rates.

Fresenius reported second-quarter revenue of €5,571 million with organic growth of approximately 5%, slightly below consensus estimates of €5,618 million. Adjusted EBIT remained stable at constant exchange rates, with a margin of 11.7%, exceeding analyst expectations of 11.4%.

The Kabi division, which specializes in clinical nutrition, pharmaceuticals and medical technologies, delivered 6% organic revenue growth in the quarter.

Growth vectors within Kabi increased by 7%, with particularly strong performance in Biopharma, which grew 33% organically, benefiting from biosimilar launches including Tyenne and Conexxence.

Kabi’s EBIT margin expanded to 16.4%, driven by cost savings that offset transaction exchange effects and nutrition headwinds in China.

The company maintained Kabi’s full-year organic growth forecast in the mid to high single digits, with an adjusted EBIT margin target of 16-16.5%.

The Helios hospital division posted 5% organic revenue growth, with Germany delivering 6% organic growth while Spain grew at 3%, impacted by the Easter holiday falling in the second quarter this year versus the first quarter last year.

Despite a 5% decline in EBIT due to the phasing out of energy relief funds in Germany, Helios maintained a 10% EBIT margin, supported by strong profitability in Spain.

Fresenius also announced plans to sell shares in Fresenius Medical (TASE:BLWV) Care (ETR:FMEG) on a pro rata basis following FME’s share buyback announcement, while maintaining its current stake of approximately 28.6%.

The company’s net debt to EBITDA ratio stands at 3.1x, slightly above its target corridor of 2.5x-3.0x, which it attributed to the resumption of dividend payments. Strong free cash flow contributed to 8% growth in core earnings per share, supported by lower interest expenses.

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