Fresenius SE & Co. KGaA
Investor Relations & Sustainability
+49 (0) 6172 608-2485
ir-fre@fresenius.com
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Detailed chartGroup sales increased by 2% (5% in constant currency) to €36,277 million (2019: €35,409 million).
The impact of the COVID-19 pandemic had a negative effect1 of an estimated 2 to 3 percentage points on currency-adjusted sales growth. In detail, COVID-19 effects on sales of the business segments2 are as follows:
1 An overview of the effect of COVID-19 is provided on page 63
2 The following description of sales relates to the respective external sales of the business segments. Consolidation effects and corporate entities are not taken into account. Therefore, aggregation to total Group sales is not possible.
1In constant currency
€ in millions | 2020 | 2019 | Change | Organic sales growth | Currency translation effects | Acquisitions | Divestitures | % of total sales |
---|---|---|---|---|---|---|---|---|
North America | 14,801 | 14,543 | 2% | 3% | -3% | 2% | 0% | 41% |
Europe | 15,813 | 15,178 | 4% | 4% | -1% | 1% | 0% | 44% |
Asia-Pacific | 3,705 | 3,732 | -1% | 1% | -2% | 1% | -1% | 10% |
Latin America | 1,566 | 1,545 | 1% | 1% | -13% | 13% | 0% | 4% |
Africa | 392 | 411 | -5% | 1% | -6% | 0% | 0% | 1% |
Total | 36,277 | 35,409 | 2% | 3% | -3% | 2% | 0% | 100% |
€ in millions | 2020 | 2019 | Change | Organic sales growth | Currency translation effects | Acquisitions | Divestitures | % of total sales2 |
---|---|---|---|---|---|---|---|---|
Fresenius Medical Care | 17,859 | 17,477 | 2% | 3% | -3% | 3% | -1% | 49% |
Fresenius Kabi | 6,976 | 6,919 | 1% | 4% | -3% | 0% | 0% | 19% |
Fresenius Helios | 9,818 | 9,234 | 6% | 4% | -1% | 3% | 0% | 27% |
Fresenius Vamed | 2,068 | 2,206 | -6% | -8% | 0% | 2% | 0% | 5% |
Total | 36,277 | 35,409 | 2% | 3% | -3% | 2% | 0% | 100% |
2 The following description of sales relates to the respective external sales of the business segments. Consolidation effects and corporate entities are not taken into account. Therefore, aggregation to total Group sales is not possible. |
€ in millions | 2020 | 2019 | 2018 | 2017 | 2016 |
---|---|---|---|---|---|
Order intake | 1,010 | 1,314 | 1,227 | 1,096 | 1,017 |
Order backlog (December 31) | 3,055 | 2,865 | 2,420 | 2,147 | 1,961 |
In 2020, Group net income1 before special items decreased by 4% (- 3% in constant currency) to €1,796 million (2019: €1,879 million). COVID-19 had an estimated effect of - 5 to - 9 percentage points on Group net income growth. In 2020, earnings per share1 before special items decreased by 4% (- 3% in constant currency) to €3.22 (2019: €3.37). The weighted average number of shares was 557.5 million.
Reported Group net income1 decreased by 9% (- 8% in constant currency) to €1,707 million (2019: €1,883 million). An impairment of goodwill and brand names at Fresenius Medical Care Latin America had a negative impact. The impairment was due to the macroeconomic downturn in several countries in the region and the resulting increase in risk premiums. In addition, the change in the valuation of the biosimilarsBiosimilarsA biosimilar is a drug that is “similar” to another biologic drug already approved. contingent purchase price liabilities (appreciation), which was due to the higher prospects of success of individual projects also had a negative impact. Reported earnings per share1 decreased by 9% (- 8% in constant currency) to €3.06 (2019: €3.38). Inflation effects did not have a significant impact on our results of operations.
Group EBITDAEBITDA (Earnings before Interest, Taxes, Depreciation and Amortization)EBITDA is calculated from EBIT by adding depreciations recognized in income and deducting write-ups recognized in income, both on intangible assets as well as property, plant and equipment. before special items remained on the previous year’s level (increased by 2% in constant currency) at €7,132 million (2019: €7,104 million). Group EBITDA reported was €7,100 million (2019: €7,083 million).
Group EBITEBIT (Earnings before Interest and Taxes)EBIT does include depreciation and write-ups on property, plant and equipment. EBIT is calculated by subtracting cost of sales, selling, general and administrative expenses, and research and development expenses from sales. before special items decreased by 2% (0% in constant currency) to €4,612 million (2019: €4,688). Group EBIT reported decreased by 5% (- 3% in constant currency) to €4,358 million (2019: €4,631 million).
in % | 20201 | 20191 | 20181 | 20171 | 2016 |
---|---|---|---|---|---|
EBITDA margin | 19.7 | 20.1 | 18.1 | 18.5 | 18.7 |
EBIT margin | 12.7 | 13.2 | 13.6 | 14.3 | 14.6 |
Return on sales (before taxes and noncontrolling interests) | 10.9 | 11.2 | 11.9 | 12.3 | 12.6 |
1 Before special items | |||||
For a detailed overview of special items please see the reconciliation tables. |
EBIT development by business segment was as follows:
The presentation of the business segments’ earnings development is provided before special items. The special items are reported in the Group Corporate/Other segment.
1 Before special items
For a detailed overview of special items please see the reconciliation tables.
Group gross profit remained on the prior year’s level at €10,316 million (2019: €10,348 million, increased by 2% in constant currency). The gross margin decreased to 28.4% (2019: 29.2%). The cost of sales increased by 4% to €25,961 million (2019: €25,061 million). Cost of sales as a percentage of Group sales increased to 71.6% (2019: 70.8%).
Selling, general, and administrative expenses consisted primarily of personnel costs, marketing and distribution costs, and depreciation and amortization. These expenses including other operating income and expenses increased by 2% to - €5,211 million (2019: - €5,101 million). The increase is mainly due to the rise in personnel costs as a result of the increased number of employees. Selling, general, and administrative expenses as a percentage of Group sales was 14.4% and remained on the prior year’s level (2019: 14.4%). R & D expenses increased by 16% to €751 million (2019: €645 million). The increase resulted from higher expenses at Fresenius Medical Care and Fresenius Kabi. Depreciation and amortization was €2,520 million1 (2019: €2,416 million1). The ratio as a percentage of sales was 6.9%1 (2019: 6.8%1). Group personnel costs increased to €15,128 million (2019: €14,355 million). The personnel cost ratio was 41.7% (2019: 40.5%).
1 Before special items
For a detailed overview of special items please see the reconciliation tables.
Group financial result before special items was - €654 million (2019: - €714 million), mainly due to refinancing activities as well as lower interest rates. Group financial result reported was - €659 million (2019: - €719 million).
The Group tax rate before special items was 23.1% (2019: 23.3%) and thus in line with expectations. Group tax rate reported was 24.2% (2019: 22.6%).
Noncontrolling interests before special items was - €1,248 million (2019: - €1,170 million), of which 96% was attributable to the noncontrolling interests in Fresenius Medical Care.
€ in millions | 2020 | 2019 | Change |
---|---|---|---|
Sales | 36,277 | 35,409 | 2% |
Cost of goods sold | -25,961 | -25,061 | -4% |
Gross profit | 10,316 | 10,348 | 0% |
Selling, general, and administrative expenses | -5,211 | -5,101 | -2% |
Gain related to divestitures of Care Coordination activities | 31 | 29 | 7% |
Research and development expenses | -751 | -645 | -16% |
Operating income (EBIT) | 4,385 | 4,631 | -5% |
Financial result | -659 | -719 | 8% |
Income before income taxes | 3,726 | 3,912 | -5% |
Income taxes | -903 | -883 | -2% |
Net income | 2,823 | 3,029 | -7% |
Noncontrolling interests in profit | -1,116 | -1,146 | 3% |
Net income1, 2 | 1,796 | 1,879 | -4% |
Net income1 | 1,707 | 1,883 | -9% |
Earnings per ordinary share in €1, 2 | 3.22 | 3.37 | -4% |
Earnings per ordinary share in €1 | 3.06 | 3.38 | -9% |
EBITDA2 | 7,132 | 7,104 | 0% |
Depreciation and amortization2 | -2,520 | -2,416 | 4% |
1 Net income attributable to the shareholders of Fresenius SE & Co. KGaA | |||
2 Before special items |
To present the underlying operational business performance and in order to compare the results with the scope of the guidance provided for fiscal year 2020, key figures are presented before special items.
2020 net income includes special items from goodwill impairment at Fresenius Medical Care in Latin America and revaluations of contingent biosimilars purchase price liabilities. Consolidated results for 2019 include special items from transaction-related expenses (e.g., NxStage), revaluations of biosimilars contingent purchase price liabilities, gains/losses related to divestitures of Care Coordination activities at Fresenius Medical Care (FMC), and expenses associated with the cost optimization program at FMC.
The special items shown within the reconciliation tables are reported in the Group Corporate/Other segment.
€ in millions | 2020 | 2019 | Growth rate | Growth rate in constant currency |
---|---|---|---|---|
Sales reported | 36,277 | 35,409 | 2% | 5% |
EBIT reported (after special items) | 4,385 | 4,631 | -5% | -3% |
Transaction costs Akorn | - | 3 | ||
Revaluations of biosimilars contingent purchase price liabilities | 32 | -32 | ||
Gain related to divestitures of Care Coordination activities | - | -29 | ||
Transaction costs NxStage | - | 24 | ||
Expenses associated with the cost optimization program at FMC | - | 91 | ||
Impairment of goodwill at FMC Latin America | 195 | - | ||
EBIT (before special items) | 4,612 | 4,688 | -2% | 0% |
Financial result reported (after special items) | -659 | -719 | 8% | 7% |
Revaluations of biosimilars contingent purchase price liabilities | 5 | 5 | ||
Financial result (before special items) | -654 | -714 | 8% | 7% |
Income taxes reported (after special items) | -903 | -883 | -2% | -5% |
Transaction costs Akorn | - | 0 | ||
Revaluations of biosimilars contingent purchase price liabilities | -11 | 8 | ||
Gain related to divestitures of Care Coordination activities | - | -20 | ||
Transaction costs NxStage | - | - 6 | ||
Expenses associated with the cost optimization program at FMC | - | -24 | ||
Income taxes (before special items) | -914 | -925 | 1% | -1% |
€ in millions | 2020 | 2019 | Growth rate | Growth rate in constant currency |
---|---|---|---|---|
Noncontrolling interests reported (after special items) | -1,116 | -1,146 | 3% | 1% |
Gain related to divestitures of Care Coordination activities | - | 34 | ||
Transaction costs NxStage | - | -12 | ||
Expenses associated with the cost optimization program at FMC | - | -46 | ||
Impairment of goodwill at FMC Latin America | -132 | - | ||
Noncontrolling interests (before special items) | -1,248 | -1,170 | -7% | -8% |
Net income reported (after special items)1 | 1,707 | 1,883 | -9% | -8% |
Transaction costs Akorn | - | 3 | ||
Revaluations of biosimilars contingent purchase price liabilities | 26 | -19 | ||
Gain related to divestitures of Care Coordination activities | - | -15 | ||
Transaction costs NxStage | - | 6 | ||
Expenses associated with the cost optimization program at FMC | - | 21 | ||
Impairment of goodwill at FMC Latin America | 63 | - | ||
Net income (before special items)1 | 1,796 | 1,879 | -4% | -3% |
1 Net income attributable to shareholders of Fresenius SE & Co. KGaA |
€ in millions | 2020 | 2019 | Growth rate | Growth rate in constant currency |
---|---|---|---|---|
Sales reported | 17,859 | 17,477 | 2% | 5% |
EBIT reported | 2,304 | 2,270 | 2% | 4% |
Gain related to divestitures of Care Coordination activities | - | -29 | ||
Transaction costs NxStage | - | 24 | ||
Expenses associated with the cost optimization program | - | 91 | ||
Impairment of goodwill at FMC Latin America | 195 | - | ||
EBIT before special items | 2,499 | 2,356 | 6% | 8% |
Net income reported1 | 1,164 | 1,200 | -3% | -1% |
Gain related to divestitures of Care Coordination activities | - | -49 | ||
Transaction costs NxStage | - | 18 | ||
Expenses associated with the cost optimization program | - | 67 | ||
Impairment of goodwill at FMC Latin America | 195 | - | ||
Net income before special items1 | 1,359 | 1,236 | 10% | 12% |
1 Net income attributable to Fresenius Medical Care AG & Co. KGaA |
€ in millions | 2020 | 2019 | Growth rate | Growth rate in constant currency |
---|---|---|---|---|
Sales reported | 6,976 | 6,919 | 1% | 4% |
Transaction costs Akorn | - | 3 | ||
Revaluations of biosimilars contingent purchase price liabilities | 32 | - 32 | ||
EBIT (before special items) | 1,095 | 1,205 | - 9% | - 6% |
Overall business development
Financial position