For Fresenius, the dialysis subsidiary FMC has increasingly become a brake pad. In 2022, the balance sheet of the healthcare group suffered so much that Chef Sen now announced the separation, but without giving up any shares. The drug division Kabi and the clinic chain Helios are to form a new focus.
Fresenius boss Michael Sen is planning the liberation because of the ongoing problems at the dialysis subsidiary FMC. By the end of the year, FMC is to become an AG
The plans became known almost two weeks ago – now the responsible bodies have approved. This would “set the strategic course for the simplification of the group structure,” explained Fresenius. Although the Bad Homburg group only holds 32 percent of FMC, it has sole say in the matter due to its legal form and must therefore take the subsidiary fully into account in its own balance sheet. The conversion is subject to approval at an FMC extraordinary general meeting scheduled for July. This year, the numbers of the dialysis subsidiary should be included in the group’s balance sheet for the last time, from next year Fresenius will only have to post profits and losses proportionately.
For Fresenius, the dialysis specialist had become more and more of a brake pad. FMC is suffering from staff shortages and rising costs, which is why Fresenius has had to lower its targets for 2022 several times. “Both companies gain flexibility (and) can better drive their strategic priorities through the change of legal form from Fresenius Medical Care to a stock corporation,” said Fresenius Supervisory Board Chairman Wolfgang Kirsch. FMC stated that Fresenius will “continue to be an active and supportive shareholder”. Sen said Fresenius wants to remain an FMC shareholder “because we know this market is attractive.” But if the package were to be turned into money at some point, it would be possible in the future without any preconditions.
The new FMC boss Helen Giza hopes that the separation will give her more room for maneuver and faster decisions. “Fresenius Medical Care needs an operational turnaround, it has to improve its performance and concentrate on its core business,” said Sen. FMC wants to save around 650 million euros by 2025, 150 million more than previously planned.
For Fresenius, Sen set the new goal of saving around one billion euros annually in structural costs from 2025 onwards. In the past year, Fresenius’ sales grew currency-adjusted by four percent to 40.8 billion euros. However, earnings before interest and taxes (EBIT) shrank by a tenth to 4.0 billion. The dividend should nevertheless remain stable at 92 cents per share. At FMC alone, EBIT fell by 13 percent to 1.82 billion euros.
For 2023, Fresenius is forecasting organic sales growth of one to five percent. Adjusted for currency effects, EBIT before special items – last year at 3.73 billion euros – should at best remain stable, but in the worst case it should shrink by a high single-digit percentage – without FMC it would only be a mid-single-digit percentage.
