Fresenius Medical Care (NYSE: FMS) is one of the largest integrated providers of products and services for individuals undergoing dialysis following chronic kidney failure. Through its network of more than 3,600 clinics across the world, the company offers dialysis services and products in more than 120 countries and employs over 109,000 staff in more than 50 countries.
Fresenius Medical reports through two segments — Care Delivery and Care Enablement. The Care Delivery segment consists of the company's Dialysis Services and the Care-Coordination (non-dialysis laboratory services), which accounted for 79.6% of net revenues in the first half of 2024. The Care Enablement segment comprises the company's Dialysis machines, dialyzers, dialysis solutions, hemodialysis concentrates, bloodline systems, water treatment systems, dialysis drugs and other medical products. The segment accounted for 20.4% of net revenues in the same period.
FMS' quarterly results are likely to continue benefiting from improving treatment volumes as well as a stabilizing labor environment in the United States. Overall price improvements also supported growth in the Care Enablement segment. Meanwhile, FMS' newly implemented operating model led to operational improvements. The company's divestment of its noncore and dilutive assets looks promising as they will help it focus on its core and growing categories as well as boost its cash resources.
The company's shares have risen 1.5% year to date compared with the industry's 8.4% growth. The stock was primarily driven by top-line growth in the past couple of quarters. The S&P 500 Index was up 20% in the same time frame.
Image Source: Zacks Investment Research
However, U.S. revenues continued to be hurt by FX impact. The bottom line was hurt by inflationary cost increases in energy, material and personnel.
Diversified ...
