(Reuters) -Fresenius reported a 13% jump in fourth-quarter operating profit on Wednesday, above market expectations, citing good earnings development across its businesses and progress in the operational turnaround at its hospital project development unit Vamed.
The diversified healthcare group reported quarterly earnings before interests and taxes, and before special items, of 634 million euros ($685 million), 7% above analysts' expectations of 591 million in a poll compiled by Vara Research.
The company's strong result echoes the performance of its former dialysis unit Fresenius Medical Care, which on Tuesday reported upbeat quarterly results and gave a higher 2024 guidance.
Fresenius CEO Michael Sen, who took the helm a year ago, has been restructuring the group to cut costs and debt, after it was hit by a decline in earnings at FMC.
The group last year ceded control of the kidney dialysis business, and is looking into selling smaller non-core businesses to focus on its generic drugs unit Kabi and hospital operator Helios.
The restructuring plan will bring Fresenius Kabi, a maker of generic hospital drugs, and Helios with its German and Spanish hospital chains to the forefront.
The Hessian-based group reported a slightly lower net debt to core earnings ratio of 3.76 times at the end of 2023, and targets a ratio of between 3.0 and 3.5 by the end of this year.
It also forecast organic revenue growth of between 3% and 6% for 2024, compared with analysts' expectations of 5.1%, and operating profit growth of 4% to 8%.
($1 = 0.9250 euros)