Fresenius Medical Care AG(FMS) - 2023 Q4 - Annual Report

Revenue and Income Performance - Revenue growth of 5% in FY 2023, reaching EUR 19,454 million, driven by favorable business development [3] - Operating income increased by 15% in FY 2023, totaling EUR 1,369 million, exceeding the top end of the outlook range [3] - Free cash flow increased by 32% in FY 2023, reaching EUR 1,960 million, resulting in a margin of 10.1% [29] - Net income for FY 2023 declined by 26% to EUR 499 million, but increased by 4% to EUR 756 million when excluding special items [26] - For Q4 2023, revenue was EUR 4,988 million, a decrease of 0.2% year-over-year, but a growth of 7.4% at constant currency [44] - Operating income for Q4 2023 was EUR 428 million, representing a 21.5% increase year-over-year, and EUR 555 million when excluding special items [44] - For the full year 2023, revenue was EUR 19,454 million, a slight increase of 0.3% year-over-year, with a growth of 5.5% at constant currency [48] - The operating income for the full year 2023 was EUR 1,369 million, a decrease of 9.4% year-over-year, while excluding special items, it was EUR 1,741 million, an increase of 13.1% [48] - Basic earnings per share for Q4 2023 increased by 35.4% to €0.64, and for the full year, it decreased by 25.9% to €1.70 [44][48] Cost Management and Savings - FME25 transformation program achieved annual sustainable savings of EUR 346 million, ahead of the initial target of EUR 250 to 300 million [8] - Special items impacting operating income in 2023 included costs related to the FME25 program (€153 million), Legal Form Conversion Costs (€30 million), and Legacy Portfolio Optimization (€204 million) [35] Financial Position and Debt - Net financial debt reduced by 11% to EUR 10.8 billion, with a net leverage ratio of 3.2x at the end of 2023 [10] - Proposed dividend of EUR 1.19 per share, a 6% increase compared to the prior year's dividend [10] Future Outlook - In 2024, revenue is expected to grow by a low- to mid-single digit percent rate compared to the prior year [31] - The Company expects operating income to grow by a mid- to high-teens percent rate compared to the prior year, with a 2023 revenue outlook of EUR 19,049 million and an operating income outlook of EUR 1,540 million [32] - The Company reconfirms its targets to achieve an operating income margin of 10% to 14% by 2025, excluding impacts from portfolio changes [33] Operational Highlights - As of December 31, 2023, Fresenius Medical Care treated 332,548 patients in 3,925 dialysis clinics worldwide [30] - The Company has a network of 3,925 dialysis clinics, providing treatments for approximately 333,000 patients globally [39] Upcoming Events - The Company will host a press conference on February 20, 2024, to discuss the strategic outlook and full year 2023 results [34] Divestments - Key divestments generated EUR 0.5 billion in total proceeds, with EUR 135 million received in 2023 [9]