Revenue
Group revenue increased by 4% (6% in constant currency) to €22,299 million (2022: €21,532 million). The reported figures are negatively impacted by currency translation, in particular due to the weaker U.S. dollar, and the hyperinflation in Argentina. Organic growthOrganic growthGrowth that is generated by a company’s existing businesses and not by acquisitions, divestitures, or foreign exchange impact. amounted to 6%. Revenue of the operating companies increased by 4% (7% in constant currency) to €20,255 million (2022: €19,494 million).
In detail, the revenue performance of the business segments1 was as follows:
Revenue by business segment1
Download(XLS, 38 KB)| € in millions | 2023 | 2022 | Growth | Currency translation effects | Constant currency growth | Organic growth | Acquisitions | Divestitures / others | % of total revenue |
|---|---|---|---|---|---|---|---|---|---|
| Fresenius Kabi | 8,009 | 7,850 | 2% | -7% | 9% | 7% | 1% | 1% | 36% |
| Fresenius Helios | 12,320 | 11,716 | 5% | 0% | 5% | 5% | 0% | 0% | 55% |
| Fresenius Vamed | 2,356 | 2,359 | 0% | 0% | 0% | 1% | 1% | -2% | 9% |
| Total | 22,299 | 21,532 | 4% | -2% | 6% | 6% | 0% | 0% | 100% |
| 1 The following description of revenue relates to the respective external revenue of the business segments. Consolidation effects and corporate entities are not taken into account. Therefore, aggregation to total Group revenue is not possible. | |||||||||
Revenue by region
Download(XLS, 35 KB)| € in millions | 2023 | 2022 | Growth | Currency translation effects | Constant currency growth | Organic growth | Acquisitions | Divestitures / others | % of total revenue |
|---|---|---|---|---|---|---|---|---|---|
| North America | 2,737 | 2,656 | 3% | -3% | 6% | 6% | 1% | -1% | 12% |
| Europe | 16,149 | 15,426 | 5% | 0% | 5% | 5% | 0% | 0% | 73% |
| Asia-Pacific | 1,639 | 1,793 | -9% | -6% | -3% | -3% | 1% | -1% | 7% |
| Latin America | 1,418 | 1,308 | 8% | -25% | 33% | 25% | 3% | 5% | 6% |
| Africa | 356 | 349 | 2% | -4% | 6% | 5% | 0% | 1% | 2% |
| Total | 22,299 | 21,532 | 4% | -2% | 6% | 6% | 0% | 0% | 100% |
- Fresenius Kabi increased revenue by 2% (9% in constant currency) to €8,009 million (2022: €7,850 million). Organic growth amounted to 7%. The business performance was driven by the good development in the growth vectors (MedTech, Nutrition, and Biopharma). Currency translation effects had a negative impact of 7%. They mainly resulted from the U.S. dollar and the hyperinflation in Argentina.
Revenue in the MedTech business increased by 5% (in constant currency: 8%) to €1,510 million. Driven by positive development in most regions and in many product groups, organic growth was 8%.
Revenue in the Nutrition business decreased by 3% (increased in constant currency: 9%) to €2,304 million. The strong organic growth of 8% was attributable to the good business performance in the USA and Latin America.
Revenue in the Biopharmaceuticals business increased by 93% in the 2023 fiscal year (in constant currency: 125%) to €363 million (2022: €188 million). This was mainly due to successful product launches in Europe and the United States.
Revenue in the Pharma business (IV Drugs & Fluids) remained roughly stable at €3,832 million (2022: €3,845 million). Adjusted for currency effects, revenue increased by 3%. Organic growth amounted to 3% driven by a positive development in many regions. - Fresenius Helios increased revenue by 5% (5% in constant currency) to €12,320 million (2022: €11,716 million). Organic revenue growth amounted to 5%. Acquisitions and divestments had no impact on revenue growth in 2023.
Helios Germany's revenue increased by 4% to €7,279 million (2022: €7,021 million). Organic growth was 4%, driven by increased case numbers and positive treatment mix effects. Acquisitions and divestments had no impact on revenue growth.
Helios Spain's revenue increased by 7% (in constant currency: 8%) to €4,770 million (2022: €4,441 million). Organic growth was 8% and was driven by continued high demand for treatments. Furthermore, hospitals in Latin America showed pleasing development. Acquisitions and divestments had no impact on revenue growth.
Helios Fertility, which was sold on January 31, 2024, increased revenue by 8% (in constant currency: 14%) to €269 million (2022: €250 million), in particular due to positive priceand treatment mix effects. Organic growth was 15%. - Fresenius Vamed's revenue remained broadly on the prior years level at €2,356 million (2022: €2,359 million). Organic growth of continued operations was 1%.
Revenue in the services business increased by 7% to €1,798 million (2022: €1,685 million), mainly due to the positive development in the service business, e.g. in european core markets. Organic growth was 7%.
In the project business, revenue decreased by 17% to €558 million (2022: €674 million). The decline was mainly due to discontinued operations as part of the transformation of Fresenis Vamed and the associated adjustments in the project business. Organic growth was -18%.
The unconditional Order intake in the project business was €336 million (2022: €1,241 million). The unconditional order backlog was €1,955 million (December 31, 2022: €3,689 million). The additional conditionally agreed order backlog amounted to €704 million.
Fresenius Vamed is the only business segment within the Fresenius Group whose business is also significantly influenced by order intake and order backlog.
Earnings structure
In 2023, Group net income1 before special items decreased by 13% (-14% in constant currency) to €1,505 million (2022: €1,729 million) due to the higher interest expenses and a higher tax rate. In 2023, earnings per share1 before special items decreased by 13% (-15% in constant currency) to €2.67 (2022: €3.08) due to the higher interest expenses and a higher tax rate. The weighted average number of shares was 563.2 million.
Reported Group net income1 decreased to -€594 million (2022: €1,372 million). The decrease compared to the previous year mainly resulted from valuation effects from the deconsolidation of Fresenius Medical Care in acordance with IFRS 5 in the amount of €1,115 million. These effects are not cash-effective. Furthermore, expenses in connection with the transformation of Fresenius Vamed, legacy portfolio adjustment, including in particular the sale of the Eugin Group and the termination of the activities of Curalie GmbH, as well as expenses for the cost and efficiency program had a negative impact on Group net income. Reported earnings per share1 was -€1.05 (2022: €2.44).
Group EBITDA before special items increased by 3% (3% in constant currency) to €3,422 million (2022: €3,315 million). Group EBITDA reported was €2,621 million (2022: €2,969 million).
Group EBIT before special items increased by 3% (2% in constant currency) to €2,262 million (2022: €2,190 million). Group EBIT reported was €1,143 million (2022: €1,812 million). EBIT before special itemsBefore special itemsIn order to measure the operating performance extending over several periods, key performance measures are adjusted by special items, where applicable. Adjusted measures are labelled with “before special items”. A reconciliation table is available within the respective quarterly or annual report and presents the composition of special items. of the Operating Companies increased by 5% (4% in constant currency) to €2,278 million (2022: €2,170 million).
1 Net income attributable to the shareholders of Fresenius SE & Co. KGaA
Group return ratios
Download(XLS, 35 KB)| in % | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| EBITDA margin1 | 15.3 | 15.4 | 16.8 | 16.5 | 17.7 |
| EBIT margin1 | 10.1 | 10.2 | 11.7 | 11.4 | 13.0 |
| 1 Before special items; the previous year's figures were adjusted due to the application of IFRS 5 to the deconsolidated activities of Fresenius Medical Care. | |||||
Statement of income (summary)
Download(XLS, 38 KB)| € in millions | 2023 | 2022 restated | 2022 previous | Growth (restated) |
|---|---|---|---|---|
| Revenue | 22,299 | 21,532 | 40,840 | 4% |
| Cost of goods sold | -17,241 | -16,129 | -30,531 | -7% |
| Gross profit | 5,058 | 5,403 | 10,309 | -6% |
| Selling, general, and administrative expenses | -3,155 | -3,094 | -6,176 | -2% |
| Other operating income and expenses | -99 | 142 | 55 | -170% |
| Research and development expenses | -661 | -639 | -867 | -3% |
| Operating income (EBIT) | 1,143 | 1,812 | 3,321 | -37% |
| Income from the Fresenius Medical Care investment accounted for using the equity method | -12 | n.a. | n.a. | n.a. |
| Interest result | -416 | -215 | -507 | -93% |
| Income before income taxes | 715 | 1,597 | 2,814 | -55% |
| Income taxes | -477 | -375 | -697 | -27% |
| Net income from continuing operations | 238 | 1,222 | 2,117 | -81% |
| Noncontrolling interests in continuing operations | -115 | 68 | -745 | -- |
| Net income from continuing operations attributable to shareholders of Fresenius SE & Co. KGaA | 353 | 1,154 | 1,372 | -69% |
| Net income from deconsolidated Fresenius Medical Care operations under IFRS 5 | -1,938 | 895 | n.a. | n.a. |
| Noncontrolling interests in deconsolidated Fresenius Medical Care operations under IFRS 5 | -991 | 677 | n.a. | n.a. |
| Net income from deconsolidated Fresenius Medical Care operations under IFRS 5 attributable to shareholders of Fresenius SE & Co. KGaA | -947 | 218 | n.a. | n.a. |
| - | ||||
| Net income | -1,700 | 2,117 | 2,117 | -- |
| Noncontrolling interests in net income | -1,106 | 745 | 745 | -- |
| Net income attributable to shareholders of Fresenius SE & Co. KGaA | -594 | 1,372 | 1,372 | -- |
| Earnings per share in € (basic and diluted) | -1.05 | 2.44 | 2.44 | -- |
| thereof based on net income from continuing operations | 0.63 | 2.05 | 2.44 | -69% |
| thereof based on net income from deconsolidatedFresenius Medical Care operations under IFRS 5 | -1.68 | 0.39 | n.a. | n.a. |
The presentation of the business segments earnings development is provided before special items. The special items are reported in the Corporate / Other segment. EBIT development by business segment was as follows:
- Fresenius Kabi's EBIT increased by 6% (3% in constant currency) to €1,145 million (20221: €1,080 million). The EBIT marginEBIT marginEBIT margin is calculated as the ratio of EBIT to revenue. was 14.3% (2022: 13.8%) and was thus within the structural EBIT margin band. The EBIT of the growth vectors grew by 15% (in constant currency: 6%) to €390 million (2022: €339 million). The EBIT margin was 9.3% (2022: 8.5%). This was mainly due to the excellent sales performance and the outstanding progress of the cost-cutting program. EBIT in the Pharma segment increased by 3% (in constant currency: 6%) to €792 million (2022: €769 million). The EBIT margin was 20.7% (2022: 20.0%). This was mainly due to the solid revenue growth and the outstanding progress of the cost-cutting program.
- The EBIT of Fresenius Helios increased by 4% (4% in constant currency) to €1,232 million (2022: €1,185 million). The EBIT margin was 10.0% (2022: 10.1%) and was thus within the structural EBIT margin range.
The EBIT of Helios Germany increased by 1% to €630 million (2022: €623 million). The EBIT1 margin was 8.7% (2022: 8.9%). The increase was mainly due to the good revenue performance as well as the progress in the cost-cutting program and government support to compensate for energy costs.
The EBIT of Helios Spain increased by 4% (5% in constant currency) to €580 million (2022: €556 million). The increase in EBIT is attributable to the strong revenue growth and the cost savings program, which is progressing well. The EBIT margin was 12.2% (2022: 12.5%).
The EBIT of Helios Fertility increased to €26 million (2022: €21 million). The EBIT margin was 9.7% (2022: 8.4%). The business unit has been sold as of January 31, 2024. - Fresenius Vamed's EBIT has been back in positive territory since the third quarter of 2023 (on a quarterly basis). Overall, EBIT in the 2023 fiscal year fell to -€16 million (2022: €20 million). The EBIT margin was -0.7% (2022: 0.8%).
As part of the comprehensive transformation process to increase profitability at Fresenius Vamed, negative special effects of €554 million were recognized in fiscal year 2023 -- mainly for the discontinuation of business activities, impairment losses, and restructuring expenses.
1 Before special items
Development of other major itemsin the statement of income
Group gross profit decreased by 6% (-1% in constant currency) to €5,058 million (2022: €5,403 million). The gross margin decreased to 22.7% (2022: 25.1%). This was mainly due to the transformation of Fresenius Vamed, legacy portfolio adjustments, expenses associated with the Fresenius cost and efficiency program and an inflation-related increase in the cost of revenue. The cost of revenue increased by 7% to €17,241 million (2022: €16,129 million). Cost of revenue as a percentage of Group revenue increased to 77.3% (2022: 74.9%).
Selling, general, and administrative expenses consisted primarily of personnel costs, marketing and distribution costs, as well as depreciation and amortization. These expenses, excluding other operating income and expenses, increased by 10% to €3,254 million (2022: €2,952 million), mainly due to the rise in personnel costs.
R & D expenses increased by 3% to €661 million (2022: €639 million). The increase resulted from higher expenses at Fresenius Kabi.
Depreciation and amortization was €1,160 million1 (2022: €1,125 million1). The ratio as a percentage of revenue was 5.2%1 (2022: 5.2%1). Depreciation and amortization reported was €1,478 million (2022: €1,157 million).
Group personnel costs increased to €9.930 million (2022: €9.439 million). The personnel cost ratio was 44.5% (2022: 43.8%).
Income from the Fresenius Medical Care investment accounted for using the equity method was -€12 million in fiscal year 2023. The result represents the development of Fresenius Medical Care since the deconsolidation as of November 30, 2023.
The Group financial result before special items was -€418 million (2022: -€241 million), mainly driven by refinancing activities in an environment of increasing interest rates. The Group financial result reported was -€416 million (2022: -€215 million).
The Group tax rate before special items was 28.3% (2022: 22.4%). The Group tax rate reported was 66.7% (2022: 23.8%). The main reasons for the increase compared to the previous year were the negative result of Fresenius Vamed, for which no deferred tax assets could be recognized, closing of tax audit proceedures as well as valuation adjustments of a deferred tax asset in Germany.
Noncontrolling interests before special items were -€60 million (2022: -€78 million).
Net income from deconsolidated Fresenius Medical Care operations under IFRS 5 attributable to shareholders of Fresenius SE & Co. KGaA before special items was €243 million (2022: €295 million). Net income from deconsolidated Fresenius Medical Care operations under IFRS 5 attributable to shareholders of Fresenius SE & Co. KGaA reported was -€947 million (2022: €218 million). The result mainly reflects the valuation adjustments in accordance with IFRS 5 as part of the deconsolidation of Fresenius Medical Care.
1 Before special items
Reconciliation Fresenius Group
To present the underlying operational business performance and in order to compare the results with the scope of the guidance provided for fiscal year 2023, the respective key figures are presented before special items.
Consolidated results for FY / 23 as well as for FY / 22 include special items. These concern: revaluations of biosimilarsBiosimilarsA biosimilar is a drug that is “similar” to another biologic drug already approved. contingent purchase price liabilities, expenses associated with the Fresenius cost and efficiency program, impacts related to the war in Ukraine, transaction costs for mAbxience and Ivenix, hyperinflation in Türkiye, retroactive duties, costs in relation to the change of legal form of Fresenius Medical Care, the transformation of Fresenius Vamed, legacy portfolio adjustments, including in particular the sale of the Eugin Group and the termination of the activities of Curalie GmbH, effects from the valuation of the investment in Fresenius Medical Care in accordance with IFRS 5, as well as the recognition and amortization from purchase price allocation (PPA) due to the application of the equity method to the Fresenius Medical Care investment. The special items shown within the reconciliation tables are reported in the Corporate / Other segment.
Reconciliation Fresenius Group
Download(XLS, 38 KB)| € in millions | 2023 | 2022 | Growth rate | Growth rate in constant currency |
|---|---|---|---|---|
| Revenue reported | 22,299 | 21,532 | 4% | 6% |
| EBIT reported (after special items) | 1,143 | 1,812 | -37% | -38% |
| Revaluations of biosimilars contingent purchase price liabilities | -29 | 23 | ||
| Expenses associated with the Fresenius cost and efficiency program | 221 | 262 | ||
| Impacts related to the war in Ukraine | - | 37 | ||
| Transaction costs of mAbxience, Ivenix | 36 | 40 | ||
| Hyperinflation in Türkiye | - | 7 | ||
| Retroactive duties | - | 9 | ||
| Legal form conversion costs Fresenius Medical Care | 17 | - | ||
| Legacy portfolio adjustments | 320 | - | ||
| Vamed transformation | 554 | - | ||
| EBIT (before special items) | 2,262 | 2,190 | 3% | 2% |
| Net interest reported (after special items) | -416 | -215 | -93% | -99% |
| Revaluations of biosimilars contingent purchase price liabilities | -5 | -26 | ||
| Legacy portfolio adjustments | 3 | - | ||
| Net interest (before special items) | -418 | -241 | -73% | -78% |
| Net income reported (after special items)1 | -594 | 1,372 | -143% | -152% |
| Revaluations of biosimilars contingent purchase price liabilities | -24 | -2 | ||
| Expenses associated with the Fresenius cost and efficiency program | 205 | 260 | ||
| Impacts related to the war in Ukraine | - | 43 | ||
| Transaction costs of mAbxience, Ivenix | 34 | 27 | ||
| Hyperinflation in Türkiye | - | 9 | ||
| Retroactive duties | - | 8 | ||
| Remeasurement of Humacyte investment | -3 | 24 | ||
| Net gain related to InterWell Health | - | -12 | ||
| Legal form conversion costs Fresenius Medical Care | 26 | - | ||
| Legacy portfolio adjustments | 315 | - | ||
| Vamed transformation | 426 | - | ||
| IFRS 5 Valuation | 1,115 | - | ||
| Initial recognition and amortization of PPA equity method Fresenius Medical Care | 5 | - | ||
| Net income (before special items)1 | 1,505 | 1,729 | -13% | -14% |
| 1 Net income attributable to Fresenius SE & Co. KGaA | ||||
Reconciliation business segments
Fresenius Kabi
Download(XLS, 35 KB)| € in millions | 2023 | 2022 | Growth rate | Growth rate in constant currency |
|---|---|---|---|---|
| Revenue reported | 8,009 | 7,850 | 2% | 9% |
| Revaluations of biosimilars contingent purchase price liabilities | -29 | 23 | ||
| Expenses associated with the Fresenius cost and efficiency program | 164 | 195 | ||
| Impacts related to the war in Ukraine | - | 15 | ||
| Transaction costs of mAbxience, Ivenix | 36 | 40 | ||
| Hyperinflation in Türkiye | - | 7 | ||
| Legacy portfolio adjustments | 8 | - | ||
| EBIT (before special items) | 1,145 | 1,080 | 6% | 3% |
Fresenius Helios
Download(XLS, 35 KB)| € in millions | 2023 | 2022 | Growth rate | Growth rate in constant currency |
|---|---|---|---|---|
| Revenue reported | 12,320 | 11,716 | 5% | 5% |
| Expenses associated with the Fresenius cost and efficiency program | 1 | - | ||
| Legacy portfolio adjustments | 294 | - | ||
| EBIT (before special items) | 1,232 | 1,185 | 4% | 4% |
Fresenius Vamed
Download(XLS, 35 KB)| € in millions | 2023 | 2022 | Growth rate | Growth rate in constant currency |
|---|---|---|---|---|
| Revenue reported | 2,356 | 2,359 | 0% | 0% |
| Expenses associated with the Fresenius cost and efficiency program | 1 | 4 | ||
| Impacts related to the war in Ukraine | - | 22 | ||
| Vamed transformation | 554 | - | ||
| EBIT (before special items) | -16 | 20 | -180% | -185% |
Corporate / Other
Download(XLS, 35 KB)| € in millions | 2023 | 2022 | Growth rate | Growth rate in constant currency |
|---|---|---|---|---|
| Expenses associated with the Fresenius cost and efficiency program | 55 | 63 | ||
| Retroactive duties | - | 9 | ||
| Legal form conversion costs Fresenius Medical Care | 17 | - | ||
| Legacy portfolio adjustments | 18 | - | ||
| EBIT (before special items) | -99 | -95 | -4% | -1% |
Contact
Fresenius SE & Co. KGaA
Investor Relations
+49 (0) 6172 608-2485
ir-fre@fresenius.com