German healthcare company Fresenius SE & Co. KGaA (FRE.XE) on Tuesday said net profit and revenues rose almost 20% in the second quarter, buoyed by recent acquisitions at two of its business units.
Fresenius, which owns dialysis product maker Fresenius Medical Care, also said it was on track for its full-year targets. Fresenius Medical Care, its biggest revenue driver, also confirmed its full-year guidance.
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Quarterly net profit rose 19% to 450 million euros ($525 million), on group revenues of EUR8.53 billion, an 18% increase. The widely watched adjusted net profit, including one-offs, was EUR459 million.
Adjusted net profit topped a Factset poll forecast of EUR455 million, revenue was slightly below the forecast rise to EUR8.54 billion.
Fresenius's acquisition of Spain's largest hospital chain, Quironsalud, which was announced last September, paid off in boosting both the Helios hospital segment's revenue and profit.
Fresenius Medical Care contributed quarterly net profit of EUR269 million on revenues of EUR4.47 billion. Profits were below analysts' expectations of EUR280 million, revenue matched analysts' expectations.
The Fresenius Kabi business, which focuses on infusion, transfusion and clinical nutrition, also contributed higher revenue and earnings in the quarter.
The unit announced two acquisitions in April worth around $5.52 billion combined.
Fresenius expects an earnings contribution from the Akorn Inc. generics acquisition from 2018 onward and from the biosimilars business acquired from Merck KGaA to start end-2019. Fresenius financed the acquisition by debt and out of its cash flow.
-- Write to Ulrike Dauer at email@example.com
The widely watched adjusted net profit, excluding one-offs, was EUR459 million. "Fresenius Confirms Full-Year Guidance After 2Q," at 0535 GMT, incorrectly stated in the third paragraph that adjusted net profit includes one-offs.
(END) Dow Jones Newswires
August 01, 2017 02:31 ET (06:31 GMT)