Fresenius beats Q2 view on strong unit performance, cost savings
Adds details on restructuring in paragraphs 5, 6, profit for units in paragraph 7
By Bartosz Dabrowski
July 31 (Reuters) -German healthcare group Fresenius FREG.DE beat second-quarter operating profit expectations on Wednesday, citing strong performance at its Kabi and Helios units, and progress in group-wide cost savings.
It reported earnings before interests and taxes (EBIT) of 660 million euros ($714 million), up 16% from a year ago.
Analysts were expecting an EBIT of 636 million euros, according to a consensus of forecasts from Vara Research.
"Cash came in extremely strong, materially improving our financial profile. We are well ahead of our plans to de-leverage and to take out costs," CEO Michael Sen said in a statement.
Since his appointment in October 2022, Sen has been overhauling the group to cut costs and debt after it was hit by a decline in earnings at its former dialysis unit, Fresenius Medical Care FMEG.DE.
The restructuring plan has brought Fresenius Kabi, a maker of generic hospital drugs, and Helios with its German and Spanish hospital chains to the forefront.
Kabi reported a quarterly EBIT growth of 17%, helped by strong biopharma business, while EBIT at Helios increased by 19% due to strong operating performance in Spain.
Fresenius said in May it had completed its restructuring with a "structured exit" from its loss-making service unit Vamed.
The group reported a quarterly net loss of 373 million euros, compared to a profit of 80 million euros a year ago, due to effects related to the discontinued operations at Vamed.
Fresenius confirmed its full-year EBIT guidance of a 6-10% growth, and said it is now confident of reaching the upper half of this range.
($1 = 0.9239 euros)
Reporting by Bartosz Dabrowski in Gdansk; Editing by Varun H K and Janane Venkatraman
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