Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide some color on your expectations for segment margins in 2025 and the phasing of these improvements? A: We are not guiding to specific segment margins for 2025 but expect both segments to progress along their margin bands. Care Enablement showed a significant step-up in Q4, reaching 7.8%, and we anticipate continued improvement. For same-market treatment growth, we are optimistic about the progress made, moving from 0.2% in Q3 to 0.5% in Q4, and expect further acceleration throughout the year.
Q: How do you expect the US market to exit in 2025 in terms of volume growth, and can you comment on the divestitures mentioned in your presentation? A: We expect volume to ramp up through the year, with a return to 2% growth in 2026 once elevated mortality normalizes. Regarding divestitures, not all assets in the assessed area are slated for divestment; some are strategically valuable. We will provide further updates at our Capital Markets Day in June.
Q: What is the potential impact of the increased ACA insurance subsidies ending, and how will the shift of phosphate binders into clinic reimbursement affect FreseniusRx? A: The end of ACA subsidies could result in a below 2% EBIT impact if patients shift to Medicare. For phosphate binders, the shift into the bundle will negatively impact the pharmacy but positively affect our pharma business, with an estimated net benefit of EUR100 million in 2025.
Q: Does your guidance include contributions from the 5008X launch, and what are your expectations for excess mortality rates? A: The 5008X launch is expected to have minimal impact on 2025 guidance as the full commercial launch is planned for 2026. Excess mortality remains elevated, with a slight improvement in the second half of 2024, but still higher than desired.
Q: Can you elaborate on the additional savings from the FME25 program and the main areas of labor cost inflation? A: The FME25 program has accelerated, with savings driven by efficient functional setups and care enablement improvements. Labor cost inflation is managed through efficiencies and wage management, with a net 3% increase expected as headcount normalizes.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.