BAD HOMBURG VOR DER HOEHE (dpa-AFX) - Fresenius SE (FSNUF.PK, FSNPF.PK) reported that its 2017 Group net income increased by 16% (18% in constant currency) to 1.8 billion euros from 1.6 billion euros, prior year. Earnings per share increased by 15% (16% in constant currency) to 3.27 euros from 2.85 euros. Adjusted Group net income increased by 19% (21% in constant currency) to 1.9 billion euros from 1.6 billion euros. Adjusted earnings per share increased by 18% (19% in constant currency) to 3.35 euros from 2.85 euros. Group net income before special items increased by 16% (18% in constant currency) to 1.8 billion euros from 1.6 billion euros. Earnings per share before special items increased by 15% (16% in constant currency) to 3.28 euros compared to 2.85 euros.
Full year 2017 Group sales increased by 15% (16% in constant currency) to 33.9 billion euros. Organic sales growth was 6%. Acquisitions contributed 10%, currency translation had a negative impact of 1%.
For 2018, Fresenius projects sales growth of 5% to 8% in constant currency. Net income is expected to grow by 6% to 9% in constant currency. Excluding expenditures for the further development of the biosimilars business, net income is expected to grow by approximately 10% to 13% in constant currency.
Based on the strong financial results 2017, Fresenius confirmed the 2020 mid-term growth targets. Group sales are expected to grow with a compounded annual growth rate (CAGR) in the range of 7.1% to 10.3%. Group net income is projected to increase with a CAGR in the range of 8.3% to 12.6%.
The Management Board will propose to the Supervisory Board a dividend increase of 21% to 0.75 euros per share.
Fresenius said the company is conducting an independent investigation, using external experts, into alleged breaches of FDA data integrity requirements relating to product development at Akorn, Inc. The Management and Supervisory Boards of Fresenius will assess the findings of the investigation. The company said the consummation of the transaction may be affected if the closing conditions under the merger agreement are not met.
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