Fresenius (FRE) Berenberg European Conference presentation summary

Strategic and operational highlights

• Achieved 9% organic revenue growth and high single-digit EBIT and EPS growth in Q3/24, with upgraded FY/24 outlook reflecting strong performance.

• Kabi and Helios segments delivered above structural growth bands, with Kabi posting 11% organic revenue growth and Helios 8%.

• Biopharma segment delivered positive EBIT, with significant product launches and regulatory milestones, including biosimilar approvals and new strategic agreements.

• Cost and productivity savings target for FY/25 already achieved in Q3/24, driven by operational excellence and structural initiatives.

• Balance sheet strengthened through accelerated deleveraging, with net debt/EBITDA at 3.24x and leverage target ratio under review.

Financial performance

• Q3/24 revenue reached €5.3bn (+9% organic), EBIT €552m (+9%), and EPS €0.55 (+7%), with strong cash flow and net income growth.

• Kabi's EBIT margin improved by 160 bps YoY to 15.9%, driven by volume growth, favorable mix, and pricing; Growth Vectors posted 16% organic revenue growth.

• Helios reported 8% organic revenue growth, with Germany and Spain both contributing equally; EBIT margin at 7.9% in Q3/24.

• Free cash flow and operating cash flow showed significant improvement, supported by working capital measures and disciplined capital allocation.

• Interest expense and tax rate remained in line with expectations, with further deleveraging and improved ROIC above 6%.

Segment and product developments

• Kabi's Biopharma, MedTech, and Nutrition segments posted strong double-digit organic growth; Biopharma revenue up 66% YoY.

• Key product launches and regulatory approvals included Ustekinumab and Denosumab biosimilars, and expansion of the Tyenne (tocilizumab) biosimilar in Europe and the US.

• Helios Spain's patient portal surpassed 7 million users, and new hospital construction began in Badajoz.

• Portfolio optimization and divestments, including the exit from Vamed project business and IV manufacturing site in Chile.

• FY/24 outlook upgraded: organic revenue growth now expected at 6-8% and EBIT growth at 8-11%.