The following is a summary of the Fresenius Medical Care AG (FMS) Q1 2024 Earnings Call Transcript:
Financial Performance:
Fresenius reported a Q1 revenue growth of 4%, driven by contributions from both Care Delivery and Care Enablement segments.
Operating income improved by 23%, supported by higher prices, higher value-based care contribution, and strong FME25 savings.
The company's portfolio optimization plan is estimated to generate cash proceeds of around €650 million upon closing.
Same Store Revenue growth was recorded as -0.7%, or -0.3% adjusting to acute clinics, with the company reiterating the 0.5 to 2% volume rate target for 2024.
A healthy revenue per treatment in Q1 was reported, fueled by sturdy reimbursement, pricing, and improved mix.
Business Progress:
Fresenius has made significant improvements in its Care Delivery segment, resulting in increased patient growth.
The company is reducing the number of constrained clinics and optimizing the clinic footprint in growth markets, while also preparing for the rollout of high-volume hemodiafiltration in the U.S.
Notable portfolio optimization steps have been taken with divestments in Brazil, Colombia, Chile, Ecuador, Guatemala, Peru, and Curacao.
Path to accelerating investment in Cloud infrastructure to support growth and demand for their AI platform.
Operational improvements are being made to address labor market challenges and unconstrain clinics.
Expectations of a return to market growth of 2% to 3% by the end of 2025 was reiterated.
Fresenius continues to make improvements in labor efficiencies and management of labor costs amidst labor shortage situations.
The company is reassessing its future contracting strategy under new leadership and remains committed to its 2025 EBIT margin target.
More details: Fresenius Medical Care IR
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