By Patrick Costello
Fresenius adjusted its mid-term guidance late on Thursday, saying the company no longer expects to meet group targets for 2020 after updating its forecast for next year.
The German health-care company said it expects to see mid-single-digit organic sales growth for 2019, with net income remaining "broadly stable" from 2018.
The company's previously expected group sales to increase at a compounded annual growth rate of 7.1% to 10.3% through 2020, with group net income increasing at a CAGR of 8.3% to 12.6%.
Fresenius said it expects to generate sustainable organic sales growth in the mid-single-digit range from 2020 onward, with group net income expected to grow faster than sales on an organic basis.
Among the group's individual units, Fresenius Medical Care--a provider of dialysis products and services--should generate sales growth and net income in 2019 in line with the levels recorded in 2018, the company said.
It forecasts that the Fresenius Kabi division--an essential drugs and medical device supplier--will deliver mid-single-digit organic sales growth and "low- to mid-single-digit" growth in earnings before interest and taxes next year.
Fresenius Helios, the group's hospital operator unit, expects EBIT to contract at a low- to mid-single digit rate next year, as growth in Spain will be unlikely to offset "headwinds" in Germany resulting from regulatory changes, Fresenius SE said.
The group said it expects to propose a dividend increase for 2018 in line with earnings growth, as well as a further dividend increase in 2019.
The company will release detailed financial guidance for 2019 and on its mid-term targets alongside full-year results for 2018 on Feb. 20.
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