"We are getting the business back on track," explained Fresenius CEO Michael Sen on Wednesday at the presentation of the quarterly balance sheet. "The general goal is to make the individual businesses of Vamed fit for the future." Fresenius recorded negative special effects of 332 million euros in the second quarter for the discontinuation of business activities and the associated value adjustments and provisions. In total, this is likely to amount to more than half a billion euros.

Sen had already acknowledged numerous problems at Vamed in the spring and described the division as a "disappointment". For example, projects and contracts at the Vienna-based company, which is active in the planning, construction and management of healthcare facilities, were not pushed forward. The top management has since been replaced and a restructuring program has been launched. Vamed is now to refocus its project business and withdraw from non-core activities in the service business. The Group is currently expecting an additional 200 to 250 million euros for further potential value adjustments and expenses at Vamed. In the fourth quarter, Fresenius' smallest loss-making subsidiary should then achieve an operational turnaround.

In future, Vamed, like the dialysis subsidiary FMC, will only be managed as a financial investment. Fresenius will examine all options, Sen emphasized. According to a report in the Austrian business magazine "trend", the construction groups Porr and Strabag are examining an investment in Vamed. In future, Fresenius intends to concentrate on the Kabi drugs division and the Helios hospital chain - both of which saw an operational upturn in the second quarter. "Fresenius Kabi and Fresenius Helios increased their sales more than expected," said Sen.

Overall, Fresenius' sales climbed by three percent to 10.36 billion euros in the second quarter, an increase of seven percent in constant currency. Adjusted net income fell by 17 percent to 375 million euros due to the burdens from Vamed and higher costs. At the bottom line, earnings plummeted by 79 percent to 80 million euros.

FRESENIUS MEDICAL CARE MORE CONFIDENT

Sen took over the helm at Fresenius in October and has been driving the realignment of the DAX-listed company ever since. As the dialysis specialist FMC has recently become more and more of a drag, the company is to be converted from a partnership limited by shares (KGaA) into a stock corporation (AG) by the end of the year. Fresenius will then no longer have to fully account for the subsidiary. The Group has already removed FMC from its forecast for 2023 and now expects organic sales growth in the mid-single-digit percentage range. Adjusted operating profit (EBIT) is expected to remain roughly stable or decline by up to a mid-single-digit percentage on a currency-adjusted basis. In the second quarter, earnings stagnated on this basis at 555 million euros.

Meanwhile, confidence for 2023 is growing at FMC. "As expected, the labour market and the inflationary environment have stabilized," said CEO Helen Giza. Targeted closures of dialysis centers also had a positive effect. For this year, the Group now anticipates a stable adjusted operating result or even a decline in the low single-digit percentage range. Previously, a decline in the high single-digit percentage range at worst had been expected after an operating result of EUR 1.54 billion in 2022. FMC continues to expect sales growth in the low to mid single-digit percentage range adjusted for currency effects.

In the second quarter, FMC's sales rose by one percent to just under 4.83 billion euros, an increase of six percent adjusted for currency effects. The operating result adjusted for special effects increased by 44 percent to 401 million. At the bottom line, profit fell by 4.6% to 140 million euros.

(Report by Patricia Weiß, edited by Ralf Bode. If you have any queries, please contact the editorial team on 030 2201 33711 (for politics and the economy) 030 2201 33702 (for companies and markets)