Fresenius SE & Co KGaA (FSNUF) Q1 2025 Earnings Call Highlights: Strong EPS Growth and ...
Kabi EBIT Margin: Increased to 16.8%.
Organic Revenue Growth: 7% for the group.
EBIT Growth: 4% at constant currency.
Group EBIT Margin: 11.6%.
Net Debt to EBITDA: Within the target range of 2.5 to 3.0.
Biopharma Organic Growth: 40% driven by Tien's success.
Helios EBIT Margin: 9.8% with strong performance in Spain.
Free Cash Flow: Increased by nearly 2 billion.
Interest Expense Reduction: Expected reduction of approximately 20 million for the year.
Full Year Guidance: Reconfirmed with 7% organic top line growth and 4% EBIT growth at constant currency.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Fresenius SE & Co KGaA (FSNUF) reported a strong start to 2025 with double-digit EPS growth, reflecting effective capital management and portfolio optimization.
The company achieved a 12% increase in core EPS in Q1, driven by growth and earnings expansion across its businesses.
Kabi's EBIT margin increased to 16.8%, supported by strong performance in biopharma, nutrition, and medtech sectors.
Helios delivered strong top-line growth, with Spain achieving a 13.1% EBIT margin and 23% EBIT growth at constant currency.
The company successfully reduced its stake in Fresenius Medical Care, using proceeds to enhance returns and lower debt, strengthening its balance sheet.
Negative Points
The absence of energy relief in Germany affected Helios' EBIT margin, which was down year-on-year.
Potential impacts from global trade uncertainties and tariff policies could affect future economic activity.
The weakening of the US dollar against the euro could negatively impact reported revenue and EBIT if it persists.
The company faces challenges in maintaining momentum amidst a dynamic macroeconomic and geopolitical environment.
Kabi's Q2 performance may be impacted by the absence of the high-margin product Keto in China, affecting revenue and EBIT.
Q & A Highlights
Q: Can you provide an update on the progress of the biopharma business and its margin expectations? A: Michael Sen, CEO, explained that the biopharma business is progressing well and is approaching the structural EBIT margin range of 16-18%. The business is expected to reach this margin in the midterm, typically within 3 to 5 years, with a potential for earlier achievement if everything aligns well. The focus is on launching new molecules and expanding market share.
Q: What are the plans for further deleveraging and balance sheet management? A: Sara Hennicken, CFO, stated that while significant progress was made last year, the pace of deleveraging will be slower in 2025. The focus remains on cash generation and improving EBITDA. The company aims to reach a leverage target of 2.5 to 3 times net debt over EBITDA.
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LUXEMBOURG--(BUSINESS WIRE)--Jul 25, 2025-- Cullinan Holdco SCSp (the ' Issuer ', and together with its subsidiaries, ' Graanul ' or the ' Group ') is pleased to announce that it has entered into a transaction support agreement (the ' Transaction Support Agreement ') with noteholders (the ' Participating Holders ') collectively representing 50% of the aggregate principal amount of its (i) 4.625% Sustainability-Linked Senior Secured Notes due 2026 (the ' Existing Fixed Rate Notes ') and (ii) Sustainability-Linked Senior Secured Floating Rate Notes due 2026 (the ' Existing Floating Rate Notes ' and, together with the Existing Fixed Rate Notes, the ' Existing Notes '), to proactively address the Group's capital structure and create a clear maturity runway until 2029 while the Group negotiates new commercial contracts (the ' A&E Transaction '). The key terms of the A&E Transaction include a 3-year extension of the maturity of the Existing Notes to October 15, 2029, in return for enhanced economics and fees as well as certain other amendments to the indenture governing the Existing Notes (the ' Existing Indenture '). Pursuant to the Transaction Support Agreement, the Issuer and the Participating Holders have agreed to implement the A&E Transaction either by amending the Existing Indenture with the consent of noteholders representing at least 90% of the aggregate outstanding principal amount of the Existing Notes, or through a scheme of arrangement under Part 26 of the Companies Act 2006 (the ' Scheme '). Accordingly, the Issuer has launched a solicitation for consents (the ' Consent Solicitation ') to amend the Existing Indenture to implement the A&E Transaction and to support commencement of the Scheme (the ' Scheme Solicitation '). Any Eligible Holders (as defined below) that elect to participate will thereafter become Participating Holders and will also be required to accede to the Transaction Support Agreement. The Transaction Support Agreement obliges each of the parties thereto (including those that subsequently accede to it) to provide approvals and take actions as required to implement the A&E Transaction, subject to the terms of the Transaction Support Agreement. The obligations of the parties under the Transaction Support Agreement will automatically terminate on the earliest of: Parties to the Transaction Support Agreement also have the ability to terminate the Transaction Support Agreement in other circumstances including where the A&E Transaction is not capable of implementation prior to the 'Long-Stop Date'. The full details of the A&E Transaction, the Scheme, the Consent Solicitation and Scheme Solicitation are provided in the consent solicitation statement dated July 25, 2025 (the ' Consent Solicitation Statement ') issued by the Issuer. This announcement is a summary of the Consent Solicitation Statement only. It highlights selected information contained in the Consent Solicitation Statement and does not contain all of the information that you should consider before making a determination with respect to the Scheme, the Consent Solicitation or Scheme Solicitation. Capitalized terms used but not otherwise defined in this press release have the meaning given to them in the Consent Solicitation Statement. The key terms of the Consent Solicitation and Scheme Solicitation are as follows: Eligibility to Participate The Consent Solicitation and the Scheme Solicitation are directed only to those holders of the Existing Notes (the ' Noteholders ') who are either (i) 'qualified institutional buyers' (as that term is defined in Rule 144A under the U.S. Securities Act of 1933, as amended (the ' U.S. Securities Act ')), transacting in a private transaction in reliance upon an exemption from the registration requirements of the U.S. Securities Act, (ii) institutional 'accredited investors' (within the meaning of Rule 501(a)(1), (2), (3), (7), (8), (9), (12) or (13) under the U.S. Securities Act) or (iii) holders who are not U.S. persons (as defined in Regulation S (' Regulation S ') under the Securities Act) transacting outside of the United States in an offshore transaction, as defined in, and in reliance on, Regulation S (provided that, if such persons are resident in (i) a member state of the European Economic Area, they must be 'qualified investors' (within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (the ' Prospectus Regulation ')) or (ii) the United Kingdom, they must be 'qualified investors' (within the meaning of Article 2(e) of the Prospectus Regulation as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018) (each such Noteholder, an ' Eligible Holder '), unless the Issuer in any instance otherwise agrees. Consent Solicitation to make amendments to the Existing Indenture and the Existing Notes The Issuer proposes to amend the Existing Indenture as follows, depending on the level of consents received in the Consent Solicitation: Scheme Solicitation If the Issuer obtains through the Transaction Support Agreement or the Consent Solicitation the consent of Noteholders representing: If the A&E Transaction is implemented by a Scheme, it will result in (i) Participating Holders receiving, on the Settlement Date, (x) the same Early Consent Consideration that such Participating Holders would have been eligible to receive in this Consent Solicitation, subject to certain conditions and, (y) as further detailed below and in the Consent Solicitation Statement, Participation Consideration paid at par and on a pro rata basis to all Noteholders in respect of all Existing Notes; and (ii) Noteholders receiving notes with terms substantially the same as the terms of the New Notes. Timing. The Consent Solicitation and Scheme Solicitation will have an Early Consent Deadline of 5:00 p.m. New York time on August 7, 2025, and will expire at 11:59 p.m. New York time on August 21, 2025, in each case, unless extended, re-opened, amended or earlier terminated by the Issuer in accordance with the Consent Solicitation Statement. Eligible Holders may submit their instructions in respect of the Consent Solicitation and Scheme Solicitation at any time prior to the Expiration Time, but Noteholders will receive the Early Consent Consideration (as defined below) only if they validly submit (and do not withdraw) their consent (or Abstention Instruction, as applicable) and become a party to the Transaction Support Agreement prior to the Early Consent Deadline (or otherwise as set forth below). Consideration. Eligible Holders who (w) validly submit and do not withdraw an Electronic Consent Instruction (or an Abstention Instruction, as applicable) with respect to all of the Existing Notes held or beneficially owned by them (except for any Existing Notes held by it in its capacity as a Qualified Market-maker and after taking into account any pending transfers), (x) (in the case of Participating Holders that are not Original Consenting Noteholders) accede to the Transaction Support Agreement by validly executing and delivering to the Information and Tabulation Agent an Accession Letter and Supporting Notes Confirmation Letter (including Evidence of Beneficial Ownership, as set out in the Transaction Support Agreement), (y) if the A&E Transaction is to be implemented by a Scheme, vote in favor or (in the case of an Abstaining Holder) abstain from voting in respect of the Scheme at the Scheme Meeting and (z) have not breached the Transaction Support Agreement on or prior to the Settlement Date, subject to satisfaction of the Settlement Conditions, will receive the New Notes, accrued and unpaid interest in respect of the Amended Notes that will be replaced by the New Notes (at the rate specified in the Existing Notes) to (and excluding) the Settlement Date and the following Consideration: provided that, if the A&E Transaction is implemented by way of a Scheme, the Participation Consideration will be paid to all Noteholders, rather than to only the Eligible Holders of Supporting Notes who take the actions described above; and provided further that, (A) to be eligible to receive the Early Consent Consideration, Eligible Holders will be required to take the actions described under (w) and (x) above prior to the Early Consent Deadline and (B) in the case a Specific CLO Holder has submitted an Abstention Instruction prior to the Early Consent Deadline, such Abstention Instruction may be withdrawn (solely for the purpose of submitting an Electronic Consent Instruction in favor of the A&E Transaction in lieu of such Abstention Instruction that is withdrawn) and any Specific CLO Holder will continue to be eligible to receive the Early Consent Consideration. 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