Earnings structure

We again achieved excellent growth rates in earnings in 2009. Adjusted Group net income 1 rose by 14 % to € 514 million. Currency translation in total had no effect, therefore growth in constant currency was 14 % as well. Adjusted earnings per ordinary share rose to € 3.18 and adjusted earnings per preference share to € 3.19 (2008: € 2.85 per ordinary share, € 2.86 per preference share). This represents an increase of 12 % at actual rates and of 11 % in constant currency for both share classes. Including the effects of the mark-to-market accounting, Group net income2 was € 494 million and earnings per share were € 3.06 per ordinary share and € 3.07 per preference share. Inflation had no significant effect on results of operations in 2009.

Group EBITDA rose by 17 % in constant currency and by 19 % at actual rates to € 2,616 million (2008, adjusted: € 2,203 million). Group EBIT increased by 17 % in constant currency and by 19 % at actual rates to € 2,054 million (2008, adjusted: € 1,727 million). In 2009, there were no special items affecting Group EBITDA and Group EBIT. The figures for 2008 are shown on an adjusted basis for reasons of comparability. They include a number of special items related to the acquisition of APP Pharmaceuticals that are shown in the reconciliation to adjusted earnings.

Statement of Income (Summary )


in million € 2009 2008 Change Change in
constant currency
1 The annual financial statements for 2008 include several special items relating to the acquisition of APP Pharmaceuticals. The adjusted figures reflect the Group's business operations in the reporting period
2 Application of the new accounting rules policies of SFAS 160 (US GAAP) resulted in a reclassification of tax expenses related to minority interests in partnerships to noncontrolling interest. The effect is neutral to net income attributable to Fresenius SE. The prior-year figures have been adjusted.
3 Net income attributable to Fresenius SE; adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) relating to the acquisition of APP Pharmaceuticals.
4 Net income attributable to Fresenius SE.
Sales 14,164 12,336 15 % 13 %
Cost of goods sold - 9,528 - 8,408 - 13 % - 12 %
Gross profit 4,636 3,928 18 % 17 %
Operating expenses - 2,582 - 2,451 - 5 % - 4 %
EBIT, adjusted 1 2,054 1,727 19 % 17 %
EBIT 2,054 1,477 39 % 37 %
Net interest - 580 - 431 - 35 % - 35 %
Other financial result - 31 68 - 146 % - 144 %
Income taxes 2 - 452 - 431 - 5 % - 3 %
Noncontrolling interest in profit 2 - 497 - 413 - 20 % - 16 %
Net income, adjusted 1, 3 514 450 14 % 14 %
Net income 4 494 270 83 % 82 %
Earnings per ordinary share in €, adjusted 3.18 2.85 12 % 11 %
Earnings per ordinary share in € 3.06 1.71 78 % 77 %
Earnings per preference share in €, adjusted 3.19 2.86 12 % 11 %
Earnings per preference share in € 3.07 1.72 78 % 77 %
EBITDA, adjusted 1 2,616 2,203 19 % 17 %
EBITDA 2,616 2,260 16 % 14 %
Depreciation and amortization 562 783 - 28 % - 29 %

in million € 2009 2008 Change Change in
constant currency
1 The annual financial statements for 2008 include several special items relating to the acquisition of APP Pharmaceuticals. The adjusted figures reflect the Group's business operations in the reporting period
2 Application of the new accounting rules policies of SFAS 160 (US GAAP) resulted in a reclassification of tax expenses related to minority interests in partnerships to noncontrolling interest. The effect is neutral to net income attributable to Fresenius SE. The prior-year figures have been adjusted.
3 Net income attributable to Fresenius SE; adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) relating to the acquisition of APP Pharmaceuticals.
4 Net income attributable to Fresenius SE.
Sales 14,164 12,336 15 % 13 %
Cost of goods sold - 9,528 - 8,408 - 13 % - 12 %
Gross profit 4,636 3,928 18 % 17 %
Operating expenses - 2,582 - 2,451 - 5 % - 4 %
EBIT, adjusted 1 2,054 1,727 19 % 17 %
EBIT 2,054 1,477 39 % 37 %
Net interest - 580 - 431 - 35 % - 35 %
Other financial result - 31 68 - 146 % - 144 %
Income taxes 2 - 452 - 431 - 5 % - 3 %
Noncontrolling interest in profit 2 - 497 - 413 - 20 % - 16 %
Net income, adjusted 1, 3 514 450 14 % 14 %
Net income 4 494 270 83 % 82 %
Earnings per ordinary share in €, adjusted 3.18 2.85 12 % 11 %
Earnings per ordinary share in € 3.06 1.71 78 % 77 %
Earnings per preference share in €, adjusted 3.19 2.86 12 % 11 %
Earnings per preference share in € 3.07 1.72 78 % 77 %
EBITDA, adjusted 1 2,616 2,203 19 % 17 %
EBITDA 2,616 2,260 16 % 14 %
Depreciation and amortization 562 783 - 28 % - 29 %

The development of EBIT by business segment was as follows:

  • Fresenius Medical Care increased EBIT by 11 % to € 1,259 million (2008: € 1,137 million). Growth in constant currency was 7 %. The EBIT margin was 15.6 % (2008: 15.8 %). The decline was mainly due to higher personnel expenses, cost increases for pharmaceuticals, and the launch of a generic product for the phosphate binder PhosLo® by a competitor in the United States. These effects were partially offset by an increase in revenue per treatment, the strong development of business in dialysis products, and successful cost control measures.
  • Fresenius Kabi increased EBIT by 37 % to € 607 million (2008: € 443 million). The EBIT margin rose to 19.7 % (2008: 17.8 %). This marked improvement was due to the high-margin business of APP Pharmaceuticals and the good operating results in all regions, cost optimization and efficiency enhancement measures, and changes in product mix.
  • Fresenius Helios achieved an excellent EBIT performance. In 2009, this business segment reported EBIT of € 205 million (2008: € 175 million) thanks to the very good business progress of the established clinics. The newly acquired clinics also performed to Fresenius Helios’ full satisfaction. EBIT grew by 17 %. The EBIT margin improved strongly to 8.5 % (2008: 8.2 %).
  • Fresenius Vamed increased EBIT by 20 % to € 36 million (2008: € 30 million). The EBIT margin was 5.8 %, and slightly ahead of the 2008 level (2008: 5.7 %).

1 Net income attributable to Fresenius SE; adjusted for the effects of the mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) relating to the acquisition of APP Pharmaceuticals. These items are not cash relevant.
2 Net income attributable to Fresenius SE.

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