German health-care company expects flat earnings and revenue growth

  • Fresenius upgrades earnings targets for 2023
  • Expects earnings before interest and taxes to remain flat compared to last year
  • Revenue expected to grow in mid-single-digit percentage range
  • Maintains target of 10% to 14% operating income margin by 2025
  • Third quarter revenue of 5.52 billion euros, up from 5.39 billion euros last year
  • EBIT of 346 million euros, down from 416 million euros
  • After-tax loss of 406 million euros due to valuation effect of Fresenius Medical Care
  • Deconsolidation process of Fresenius Medical Care on track
  • Fresenius Medical Care revenue of 4.94 billion euros, down from 5.1 billion euros last year
  • Operating income decreased 28% at constant currency to 324 million euros
  • Net profit slumped to 84 million euros from 230 million euros

Fresenius, the German health-care company, has raised its earnings targets for 2023 following a strong performance in the first three quarters of the year. The company now expects earnings before interest and taxes to remain flat compared to last year, a significant improvement from its previous estimate of a mid-single-digit decline. Revenue is expected to grow in a mid-single-digit percentage range, and Fresenius maintains its target of a 10% to 14% operating income margin by 2025. In the third quarter, the company reported revenue of 5.52 billion euros, up from 5.39 billion euros in the same period last year. However, EBIT decreased to 346 million euros from 416 million euros, and the company swung to an after-tax loss of 406 million euros due to the valuation effect of Fresenius Medical Care. The deconsolidation process of Fresenius Medical Care is on track and should be effective by December this year. Fresenius Medical Care, presented as a single item in the financial statements of the Fresenius Group for the first time in the third quarter, posted revenue of 4.94 billion euros, down from 5.1 billion euros last year. Operating income decreased 28% at constant currency to 324 million euros, and net profit slumped to 84 million euros from 230 million euros.

Factuality Level: 8
Factuality Justification: The article provides specific information about Fresenius’ upgraded earnings targets and financial performance in the first three quarters of the year. The information is presented without any obvious bias or opinion. However, it is important to note that the article does not provide any external sources or additional context to verify the accuracy of the information.
Noise Level: 7
Noise Justification: The article provides information on Fresenius’ upgraded earnings targets and performance in the first three quarters of the year. It includes specific figures and mentions the deconsolidation process of Fresenius Medical Care. However, it lacks analysis, evidence, and actionable insights. It mainly focuses on financial data without exploring the consequences or holding powerful people accountable.
Financial Relevance: Yes
Financial Markets Impacted: The financial markets impacted by this news article are the healthcare and medical care sectors.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article does not mention any extreme events or events that would have a significant impact on financial markets or companies.
Public Companies: Fresenius (N/A), Fresenius Medical Care (N/A)
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