Fresenius Backs 2019 Outlook, Hopeful About Future

   By Donato Paolo Mancini 
 

Fresenius SE & Co. KGaA (FRE.XE) backed its 2019 guidance on Wednesday, after revising it last year, and said its sales and net profit for 2018 grew.

The German health-care company said 2018 net profit totaled 1.87 billion euros ($2.12 billion), up 7% in constant currencies from the year prior, while sales grew 6% to EUR33.5 billion.

The company backed its 2019 outlook, saying it expects net profit to stay flat and for sales to grow between 3% and 6% in constant currencies. It had given revised guidance for the medium term last year.

It will also increase its dividend for 2019, it said. Between 2020 and 2023, sales are projected to grow at a compounded annual growth rate of between 4% and 7%, while net income is projected to grow between 5% and 9%.

Fresenius noted its acquisition of NxStage Medical Inc. (NXTM) hasn't been yet completed. It said previously that the U.S. federal government shutdown had affected the acquisition. On Wednesday, it said this wouldn't affect group metrics.

The company also said its Helios division in Germany was hit by regulatory changes, while in Spain it showed continuous growth.

At Fresenius Medical Care AG (FME.XE)--a provider of dialysis products and services--comparable sales for the year increased 4% in constant currencies to EUR16.55 billion. Adjusted net profit for the year increased to EUR1.19 billion, up 4%.

For 2019, the company targets net profit growth of between -2% and +2%, and for adjusted net sales, excluding an agreement in the U.S., growth of between 3% and 7%. For 2020, it expects the metrics to grow at a mid to high single-digit rate.

It said separately that it would undertake a share-buyback program valued at up to EUR1 billion.

Stephan Sturm, chief executive of Fresenius, said that 2018 wasn't an easy year, but that it was still successful. He said 2019 would be a year of investment in growth areas such as home dialysis, biosimilars, and new hospital services and therapies.

Write to Donato Paolo Mancini at [e-mail]; @donatopmancini

(END) Dow Jones Newswires

February 20, 2019 01:55 ET (06:55 GMT)

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