The German-based dialysis company finished 2019 with revenue growth of 6% year-over-year but struggled in several other major metrics.
Fresenius Medical Care (FMC) saw its quarterly revenue increase by 7% year-over-year, according to its latest earnings report released Wednesday afternoon.
For the quarter, FMC recorded an operating income increase of 1% but suffered significant drops in net income and basic earnings per share (EPS), which dropped 19% and 17%, respectively.
The German-based dialysis company finished 2019 with revenue growth of 6% year-over-year but struggled in several other major metrics.
Related: Fresenius Notches $4.9B in Revenue, $369M Profit
FMC's operating income fell 25% compared to 2018, while both its net income and basic EPS dropped 39% year-over-year.
C-SUITE PERSPECTIVE:
"2019 was a successful year for Fresenius Medical Care. We achieved our revenue and net income targets and are therefore proposing our 23rd consecutive dividend increase," Rice Powell, CEO of Fresenius Medical Care, said in a statement. "Last year we also invested more strongly in our future growth, particularly in the area of home dialysis and in developing economies. In addition, our measures to increase efficiency and optimize our cost base are progressing according to plan. As a consequence, we expect growth to accelerate, and confirm the 2020 outlook that we issued early last year."
One development for FMC to start 2020 was that the company, as part of a coalition with fellow dialysis provider DaVita Inc., dropped a ballot initiative to counter a labor-backed measure in California.
According to Angela Hart from Politico, the initiative supported by the SEIU-United Healthcare Workers West, would "require clinics to staff a licensed physician during operating hours and the state to approve private dialysis clinic closures."
FMC remains opposed to the labor-backed measure but did not gather signatures for their own measure.
Related: Dialysis Patients Panic As Financial 'Life Raft' Becomes Unmoored
FMC's earnings were released just over a week after DaVita produced its year-end financials.
The Denver-based dialysis company recorded total revenues of $11.3 billion, down from $11.4 billion in 2018.
However, DaVita ended Q4 2019 with nearly $2.9 billion in total revenues, eclipsing $2.8 billion in total revenues in Q4 2018
Related: Year-end Revenues Plateau but Net Income Spikes for DaVita
For complete financial information, review Fresenius Medical Care's filing with the Securities and Exchange Commission.
This story has been updated with more information regarding Fresenius' ballot initiative in California.
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
Photo credit: Medic West Africa Exhibition for Adcem Pharmaceuticals at Eko Convention center, Victoria Island, Lagos state 11th - 13th October, 2018 - Image / Editorial credit: LEN234 / Shutterstock.com