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• EPS Growth: Double-digit growth, with core EPS up 12% in Q1.

• Kabi EBIT Margin: Increased to 16.8%.

• Organic Revenue Growth: 7% for the group.

• EBIT Growth: 4% at constant currency.

• Group EBIT Margin: 11.6%.

• Net Debt to EBITDA: Within the target range of 2.5 to 3.0.

• Biopharma Organic Growth: 40% driven by Tien's success.

• Helios EBIT Margin: 9.8% with strong performance in Spain.

• Free Cash Flow: Increased by nearly 2 billion.

• Interest Expense Reduction: Expected reduction of approximately 20 million for the year.

• Full Year Guidance: Reconfirmed with 7% organic top line growth and 4% EBIT growth at constant currency.

• Warning! GuruFocus has detected 9 Warning Signs with FSNUF.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Fresenius SE & Co KGaA (FSNUF) reported a strong start to 2025 with double-digit EPS growth, reflecting effective capital management and portfolio optimization.

• The company achieved a 12% increase in core EPS in Q1, driven by growth and earnings expansion across its businesses.

• Kabi's EBIT margin increased to 16.8%, supported by strong performance in biopharma, nutrition, and medtech sectors.

• Helios delivered strong top-line growth, with Spain achieving a 13.1% EBIT margin and 23% EBIT growth at constant currency.

• The company successfully reduced its stake in Fresenius Medical Care, using proceeds to enhance returns and lower debt, strengthening its balance sheet.

Negative Points

• The absence of energy relief in Germany affected Helios' EBIT margin, which was down year-on-year.

• Potential impacts from global trade uncertainties and tariff policies could affect future economic activity.

• The weakening of the US dollar against the euro could negatively impact reported revenue and EBIT if it persists.

• The company faces challenges in maintaining momentum amidst a dynamic macroeconomic and geopolitical environment.

• Kabi's Q2 performance may be impacted by the absence of the high-margin product Keto in China, affecting revenue and EBIT.

Q & A Highlights

Q: Can you provide an update on the progress of the biopharma business and its margin expectations? A: Michael Sen, CEO, explained that the biopharma business is progressing well and is approaching the structural EBIT margin range of 16-18%. The business is expected to reach this margin in the midterm, typically within 3 to 5 years, with a potential for earlier achievement if everything aligns well. The focus is on launching new molecules and expanding market share.

Q: What are the plans for further deleveraging and balance sheet management? A: Sara Hennicken, CFO, stated that while significant progress was made last year, the pace of deleveraging will be slower in 2025. The focus remains on cash generation and improving EBITDA. The company aims to reach a leverage target of 2.5 to 3 times net debt over EBITDA.