Fresenius SE & Co. KGaA: Significantly worsening headwinds at Fresenius Medical Care impact Group net income in FY/22; Fresenius SE & Co. KGaA Group guidance revised 

Fresenius Medical Care’s financial performance in Q2/22 was significantly impacted by worsened labor shortages and related meaningfully increased wage inflation in the U.S. The further deterioration of the macro-economic environment resulted in accelerated non-wage inflation, particularly higher supply chain costs.
Against this backdrop and growing indications for a persistent unfavorable development of these and other factors, Fresenius Medical Care has revised its outlook for FY/22. 
All other Fresenius Group segments confirm their respective outlook for both revenue and EBIT. 
However, as a consequence of the development at Fresenius Medical Care, and despite all other Fresenius Group segments confirming their respective outlook for both revenue and EBIT, Fresenius now also revises its Group outlook for FY/22. At constant currency, the Company now anticipates Group sales¹ to grow in a low-to-mid single-digit percentage range (previously: mid-single digit percentage range) and Group net income^2,3 to decline in a low-to-mid single-digit percentage range (previously: increase in a low-single-digit percentage range).
The acquisition of Ivenix and the announced acquisition of the majority stake in mAbxience as well as any further potential acquisitions remain excluded from guidance. 

Preliminary Q2/22 results 
Preliminary Group sales increased by 8% (3% in constant currency) to €10,018 million in Q2/22 versus prior-year quarter. Preliminary net income^2,4 declined by 5% (-9% in constant currency⁵) to €450 million in Q2/22. 

Group medium-term targets
As a result of the updated expectations for FY/22 Fresenius now believes its medium-term net income⁶ target is no longer achievable. Fresenius had expected Group organic net income⁶ growth to be at the bottom end of the 5% to 9% compounded annual growth rate (CAGR) range for 2020 to 2023. 
At the same time, Fresenius specifies its Group organic sales growth target to reach the low-end of the targeted 4% to 7% compounded annual growth rate (CAGR) range for 2020 to 2023.


¹ FY/21 base: €37,520 million 
² Net income attributable to shareholders of Fresenius SE & Co. KGaA
³ FY/21 base: €1,867 million, before special items; 2022: before special items
⁴ Before special items
⁵ Excluding Ivenix acquisition
⁶ Net income attributable to shareholders of Fresenius SE & Co. KGaA; before special items

For additional information on the performance indicators used please refer to our website at https://www.fresenius.com/alternative-performance-measures. 


Fresenius SE & Co. KGaA, 
represented by Fresenius Management SE, 
The Management Board

Bad Homburg v.d.H., July 27, 2022


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Contact:
Markus Georgi
Senior Vice President Investor Relations & Sustainability
T: +49 (0) 6172 608-2485
markus.georgi@fresenius.com
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