Fresenius SE Stock: Shares Soar to 2021 Highs

Fresenius SE experienced a remarkable trading day Wednesday as its stock climbed to its highest level since November 2021, surging more than 6 percent to €39 and outperforming the positive DAX trend. This impressive rally followed the healthcare giant's strong 2024 financial results, which met self-imposed targets with organic revenue growth of 8 percent to €21.5 billion and a currency-adjusted EBIT increase of 10 percent to €2.5 billion. Particularly encouraging for shareholders was the resumption of dividend payments at €1.00 per share after the previous year's suspension. Looking ahead, management projects 4-6 percent organic revenue growth and 3-7 percent EBIT growth for the current fiscal year, demonstrating continued confidence despite certain operational challenges.

Kabi Division Drives Future Growth Expectations

The Kabi division has emerged as a particular bright spot in Fresenius's portfolio, prompting management to raise its structural margin target to 16-18 percent, up from the previous 14-17 percent range. In the fourth quarter of 2024, Kabi delivered impressive results with an 8 percent revenue increase to €2.15 billion, with its MedTech, Nutrition and Biopharma growth vectors achieving outstanding 18 percent organic growth. Meanwhile, the company has implemented an efficiency program for its Helios hospital division to offset the elimination of government energy cost subsidies in Germany, expected to contribute approximately €100 million to EBIT in the current year.