Fresenius Medical Care third-quarter earnings grow 27%

Fresenius Medical Care AG reported third-quarter earnings grew 27% to $333 million in the third quarter of 2016, compared to $216 million in the same quarter last year. The company reported that dialysis revenue in North America grew, in part, because of higher revenue per treatment and an increase in patients with commercial insurance plans.

“We are very pleased with our performance in the third quarter of 2016, which is the result of a strong execution in all regions, the success of our Global Efficiency Program as well as further expansion of our global footprint,” said Rice Powell, Chief Executive Officer of Fresenius Medical Care. “Care Coordination services maintain excellent growth momentum which will help us to extend our range of health care services even further.”

Net revenue for the quarter increased 9% and reached $4.6 billion (+9% at constant currency), mainly driven by a strong performance in Health Care services. Contributing revenues of $3.7 billion (+10%), Health Care services was largely supported by an improvement in U.S. revenue per treatment (+$3) as well as a strong organic growth, the company said. Dialysis products revenue increased 4% to $864 million in the third quarter, mainly driven by higher sales of machines, dialyzers and products for acute care.

North America revenue increased 10% to $3.3 billion (72% of total revenue). Health Care services revenue grew 10% to $3 billion, of which Care Coordination contributed $618 million (+29%), supported by significant organic revenue growth of 24%. Dialysis care revenue contributed $2.5 billion (+6%), driven by increased revenue per treatment and higher volumes of dialysis treatments with commercial payers. Dialysis products revenue grew 7% to $232 million, due to increased product sales, especially machines and dialyzers.