By Helena Smolak

Fresenius Medical Care narrowed its operating profit margin target for this year after its fourth-quarter profit slumped.

The German dialysis company said Tuesday that it forecasts its operating profit to grow in the high teens to high twenties percentage in 2025, translating into an operating profit margin of 11% to 12%, previously seen between 10% to 14%. The company expects 2025 revenue to grow by a low-single digit percent rate. The expected growth rates for 2025 are at constant currency, excluding special items.

Its 2025 guidance anticipates U.S. treatment volume growth above 0.5%, previously forecast around 2%. "U.S. volume growth remains subdued with guidance on this also relatively modest and unlikely to reassure investors on the long term recovery," UBS analysts said in a note. Fresenius Medical Care expects to return to 2% U.S. volume growth, its Chief Executive Officer Helen Giza said in a media call.

The company made a net profit of 67 million euros ($70.1 million) for the quarter, down from 188 million euros in the same period a year before. The previous year's quarter included a positive impact of the Tricare settlement of 110 million euros, it said.

Revenue grew 2% to 5.085 billion euros.

Its operating profit--the company's key profitability metric- fell 39% to 259 million euros, it said.

Analysts expected Fresenius Medical Care to report revenue of 4.96 billion euros, adjusted operating profit of 439 million euros and net profit of 192 million euros, according to consensus estimates provided by the company.

Care enablement revenue grew by 11%, offset by a 1% revenue decline in the care-delivery segment. Its care-delivery business in the U.S.--the company's biggest market-- rose by 1% due to higher treatment volumes and reimbursement rates, it said.

The board raised its dividend for 2024 by 21% to 1.44 euros a share.

The company raised its 2025 savings target to 750 million euros from 650 million euros as it is undergoing the final year of its transformation plan, which it launched in 2023.

Write to Helena Smolak at helena.smolak@wsj.com

(END) Dow Jones Newswires

February 25, 2025 06:06 ET (11:06 GMT)

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