Fresenius reported mixed second-quarter results, with revenue rising slightly to €5.57 billion but falling short of analyst expectations. While profitability surprised positively, the healthcare giant faces structural challenges, particularly in its Helios hospital division, which saw a 5% decline in adjusted EBIT to €337 million due to the end of state energy subsidies. Helios Germany was hit hardest, with EBIT dropping 4% to €150 million. Despite these headwinds, organic growth remained solid at 5%, prompting management to raise its full-year revenue forecast to 5–7%.
Efficiency Measures to Offset Declining Margins
The company has launched a performance program to counter margin erosion, with initial improvements expected in late 2024. Fresenius reaffirmed its 2025 targets, including mid-single-digit organic growth and a 10% EBIT margin for Helios. Meanwhile, plans to sell additional stakes in its dialysis subsidiary aim to maintain a stable ownership level. While geopolitical risks persist, the revised outlook reflects cautious optimism as the firm navigates a challenging landscape.
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