(Reuters) -German healthcare group Fresenius raised its revenue guidance for 2025 on Wednesday, citing consistent growth seen in the first half of the year, and said it would sell some shares of its former dialysis unit to maintain the size of its stake.
The Hessian-based company now targets 5-7% organic revenue growth, after previously guiding for a range of 4-6%.
It plans to sell shares it holds in Fresenius Medical Care proportionally to maintain its current stake of around 28.6%, it said, after FMC announced a 1-billion-euro share buyback programme in June.
The diversified healthcare group, which had previously held 32.2% of FMC’s shares, said in March it was to cut its stake in the world’s biggest dialysis provider to 25% plus one share at the lowest.
“Fresenius will use the proceeds to invest in its core business in line with the #FutureFresenius strategy and Fresenius’ stated capital allocation priorities,” it said in a statement.
Since taking the helm in October 2022, CEO Michael Sen has been revamping Fresenius’ organization to reduce costs and liabilities, which included ceding control of FMC in 2023.
The restructuring initiative has prioritised Fresenius Kabi, a producer of generic hospital medications, and hospital operator Helios with a network across Germany and Spain.
For the second quarter of the year, Fresenius reported earnings before interest and taxes of 654 million euros ($757.14 million), excluding special items, beating analysts’ average estimate by 2.6%, according to a poll by Vara Research.
Its shares were up 2.6% in early Frankfurt trade.
($1 = 0.8638 euros)
(Reporting by Tristan Veyet in Gdansk, Patricia Weiss in Frankfurt, editing by Milla Nissi-Prussak)
