FMC specifies 2024 guidance as it tops Q3 core profit forecast
Adds CEO quotes in paragraphs 3, 9, shares in paragraph 6, peer performance in paragraph 7
By Bartosz Dabrowski and Patricia Weiss
Nov 5 (Reuters) -Dialysis specialist Fresenius Medical Care FMEG.DE slightly raised the lower end of its 2024 operating profit forecast range on Tuesady after posting quarterly earnings above expectations, helped by cost savings and as its U.S. business recovers.
The world's largest dialysis specialist now expects full-year operating income to grow by 16% to 18% compared to the prior year. Previously, it had forecast mid- to high-teens percentage growth.
"Clearly in our U.S. business, we're still in a turnaround situation," CEO Helen Giza told Reuters, noting higher sales of its dialysis machines and treatment in the country.
The German company makes about 70% of its sales in the United States.
It said sales in its care delivery unit grew 1%, excluding currency exchange effects, special items and divestitures completed in 2023, largely supported by its value-based care business, an overall increase in treatment volumes and higher reimbursement rates.
The company's Frankfurt-listed shares were up 2.6% by 0855 GMT.
Last week, U.S. dialysis firm DaVita DVA.N reported third-quarter profit below Wall Street estimates due to increased labour costs and other expenses tied to patient care.
Fresenius Medical Care said its transformation programme called FME25 delivered 64 million euros ($70 million) of additional savings in the quarter, while related one-time costs amounted to 39 million euros.
"I think the momentum we've got from FME 25 is terrific and now I want that to trend," Giza said.
The German company said its adjusted operating income grew 42.7% to 463 million euros in the July-September quarter, versus analysts' median estimate of 434 million euros in a company-provided consensus.
The group's quarterly sales were 4.76 billion euros, below the consensus figure of 4.84 billion euros.
($1 = 0.9182 euros)
Reporting by Bartosz Dabrowski and Patricia Weiss; editing by Milla Nissi and Emelia Sithole-Matarise
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