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FRESENIUS MEDICAL CARE AG & CO. KGAA

(FME)
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PRESS RELEASE: Fresenius Medical Care AG & Co. -2-

07/30/2021 | 01:05am EDT

Fresenius Medical Care generated EUR 720 million of free cash flow^4 (Q2 2020: EUR 2,103 million) in the second quarter, resulting in a margin of 16.7% (Q2 2020: 46.1%). In the first half, Free cash flow amounted to EUR 749 million (H1 2020: EUR 2,407 million), resulting in a margin of 8.8% (H1 2020: 26.6%).

Regional developments

In North America, revenue decreased by 9% to EUR 2,953 million in the second quarter (stable at constant currency, -1% organic). Besides a sizable negative exchange rate effect, this was mainly due to the adverse COVID-19 impact on both the Health Care Services and Health Care Products businesses along with associated downstream effects and a lower reimbursement for Calcimimetics. In the first half, revenue decreased by 9% to EUR 5,852 million (stable at constant currency, -1% organic).

Operating income in North America decreased by 35% to EUR 398 million in the second quarter (-29% at constant currency), resulting in a margin of 13.5% (Q2 2020: 18.8%). The decline was mainly due to the adverse impact of COVID-19, including a high prior-year base mainly driven by government relief funding, negative exchange rate effects, increased direct costs and an unfavorable impact from Calcimimetics. This was partially offset by an improved Medicare Advantage payor mix. In the first half, operating income declined by 26% to EUR 796 million (-19% at constant currency), resulting in a margin of 13.6% (H1 2020: 16.7%).

Revenue in EMEA increased by 1% and amounted to EUR 693 million in the second quarter (+2% at constant currency, +2% organic). This was mainly driven by an increase in Health Care Product revenue due to higher sales of acute cardiopulmonary products, renal pharmaceuticals and machines for chronic treatment, partially offset by lower sales of products for acute treatments and negative exchange rate effects. In the first half, revenue was stable and amounted to EUR 1,362 million (+2% at constant currency, +2% organic).

Operating income in the EMEA region decreased by 5% to EUR 73 million in the second quarter (-5% at constant currency), resulting in a margin of 10.6% (Q2 2020: 11.3%). The decline was mainly driven by negative foreign currency transaction effects, higher costs of revenue as well as higher Sales, General and Administrative expense. This was partially offset by the lower prior year base due to an impairment recorded in 2020 for a license held by the joint venture with Vifor Pharma. In the first half, operating income decreased by 14% to EUR 153 million (-14% at constant currency), resulting in a margin of 11.2% (H1 2020: 13.1%).

In Asia-Pacific, revenue increased by 8% to EUR 486 million in the second quarter (+11% at constant currency, +10% organic). This was mainly driven by an increase in Health Care Services revenue, primarily due to a recovery in elective procedures, which was partially offset by exchange rate effects. In the first half, revenue grew by 7% to EUR 957 million (+11% at constant currency, +11% organic).

Operating income increased by 33% to EUR 84 million in the second quarter (+38% at constant currency), resulting in a margin of 17.3% (Q2 2020: 14.1%). The increase was mainly driven by favorable business growth and the above-mentioned recovery in elective procedures, partially offset by unfavorable foreign currency transaction effects. In the first half, operating income grew by 21% to EUR 170 million (+25% at constant currency), resulting in a margin of 17.7% (H1 2020: 15.7%).

Despite a very significant headwind from exchange rates and the adverse impact of COVID-19, Latin America revenue increased by 1% to EUR 171 million in the second quarter (+17% at constant currency, +14% organic). This was mainly driven by an increase in Health Care Services revenue. In the first half, revenue decreased by 2% to EUR 330 million (+17% at constant currency, +15% organic).

Operating income in Latin America decreased by 76% to EUR 3 million in the second quarter (-82% at constant currency), resulting in a margin of 1.5% (Q2: 2020: 6.4%). The decline was driven by increased bad debt expense in Colombia. In the first half, operating income declined by 48% to EUR 9 million (-49% at constant currency), resulting in a margin of 2.8% (H1 2020: 5.3%).

Patients, Clinics and Employees

As of June 30, 2021, Fresenius Medical Care treated 345,646 patients in 4,125 dialysis clinics worldwide. At the end of the second quarter, the Company had 123,538 employees (full-time equivalents) worldwide, compared to 124,736 employees as of June 30, 2020.

Conference call

Fresenius Medical Care will host a conference call to discuss the results of the second quarter and first half of 2021 on July 30, 2021 at 3:30 p.m. CEST / 9:30 a.m. EDT. Details will be available on the company's website www.freseniusmedicalcare.com in the "Investors" section. A replay will be available shortly after the call.

Please refer to our statement of earnings included at the end of this news and to the attachments as separate PDF-files for a complete overview of the results of the second quarter and first half of 2021. Our 6-K disclosure provides more details.

Fresenius Medical Care is the world's leading provider of products and services for individuals with renal diseases of which around 3.7 million patients worldwide regularly undergo dialysis treatment. Through its network of more than 4,100 dialysis clinics, Fresenius Medical Care provides dialysis treatments for approximately 346,000 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with its core business, the Renal Care Continuum, the company focuses on expanding in complementary areas and in the field of critical care. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and on the New York Stock Exchange (FMS).

For more information visit the Company's website at www.freseniusmedicalcare.com.

Disclaimer: This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to various factors, including, but not limited to, changes in business, economic and competitive conditions, legal changes, regulatory approvals, impacts related to the COVID-19 pandemic results of clinical studies, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release. ^[1] Costs related to the FME25 program ^[2] Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA ^[3] These targets are based on the 2020 results excluding the impairment of goodwill and trade names in the Latin America Segment of EUR 195 million. They are inclusive of anticipated COVID-19 effects, in constant currency and exclude special items. Special items include costs related to FME25 and other effects that are unusual in nature and have not been foreseeable or not foreseeable in size or impact at the time of giving guidance. ^[4] Net cash provided by / used in operating activities, after capital expenditures, before acquisitions, investments and dividends Contact: Dr. Dominik Heger EVP I Head of Investor Relations, Strategic Development & Communications dominik.heger@fmc-ag.com P. +49 6172 609 2525 -----------------------------------------------------------------------------------------------------------------------

2021-07-30 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de -----------------------------------------------------------------------------------------------------------------------

Language:     English 
Company:      Fresenius Medical Care AG & Co. KGaA 
              Else-Kröner-Straße 1 
              61352 Bad Homburg 
              Germany 
Phone:        +49 (0) 6172- 609 2525 
Fax:          +49 (0) 6172- 609 2301 
E-mail:       ir@fmc-ag.com 
Internet:     www.freseniusmedicalcare.com 
ISIN:         DE0005785802 
WKN:          578580 
Indices:      DAX 
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, 
              Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; NYSE, Luxembourg Stock Exchange 
EQS News ID:  1222889 
 
End of News   DGAP News Service 
=------------ 

1222889 2021-07-30

 
Image link: 
https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1222889&application_name=news 
 

(END) Dow Jones Newswires

July 30, 2021 01:04 ET (05:04 GMT)

Stocks mentioned in the article
ChangeLast1st jan.
DAX -1.03% 15490.17 Delayed Quote.12.91%
DJ INDUSTRIAL -0.48% 34584.88 Delayed Quote.13.54%
FRESENIUS MEDICAL CARE AG & CO. KGAA 0.67% 60.12 Delayed Quote.-11.85%
FRESENIUS SE & CO. KGAA 0.18% 40.9 Delayed Quote.8.09%
THE NASDAQ COLOMBIA INDEXED MARKET 0.01% 354.637499 Real-time Quote.-20.74%
VIFOR PHARMA AG -0.62% 121.2 Delayed Quote.-12.81%
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Financials (USD)
Sales 2021 21 180 M - -
Net income 2021 1 274 M - -
Net Debt 2021 13 395 M - -
P/E ratio 2021 16,0x
Yield 2021 1,99%
Capitalization 20 652 M 20 676 M -
EV / Sales 2021 1,61x
EV / Sales 2022 1,51x
Nbr of Employees 123 538
Free-Float 67,8%
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Fresenius Medical Care AG & Co. KGaA Technical Analysis Chart | FME | DE0005785802 | MarketScreener
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Income Statement Evolution
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Mean consensus HOLD
Number of Analysts 21
Last Close Price 70,49 $
Average target price 80,66 $
Spread / Average Target 14,4%
EPS Revisions
Managers and Directors
Rice Powell Chief Executive Officer
Helen Giza Chief Financial Officer
Dieter Schenk Chairman-Supervisory Board
Olaf Schermeier CEO-Global Research & Development
Franklin W. Maddux Global Chief Medical Officer