- Sales
- Earnings structure
- Reconciliation to group net income
- Development of other major items in the statement of income
- Value added
Earnings structure
We again achieved excellent growth rates in earnings in 2010. Group net income1 rose by 28% to €660 million. Currency translation had a pronounced positive effect, leading to growth in constant currency of 23%. Earnings per ordinary share1 and earnings per preference share1 rose to €4.08 (2009: €3.18 per ordinary share, €3.19 per preference share). This represents an increase of 28% at actual rates and of 23% in constant currency for both share classes. Including special items, Group net income2 was €622 million and earnings per share were €3.85 both per ordinary share and per preference share. Inflation had no significant effect on results of operations in 2010.
Group EBITDA rose by 12% in constant currency and by 17% at actual rates to €3,057 million (2009: €2,616 million). Group EBIT increased by 13% in constant currency and by 18% at actual rates to €2,418 million (2009: €2,054 million).
STATEMENT OF INCOME (SUMMARY)
| € in millions | 2010 | 2009 | Change | Change in constant currency |
|---|---|---|---|---|
| 1 Net income attributable to Fresenius SE & Co. KGaA adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) relating to the acquisition of APP Pharmaceuticals, Both are non-cash items 2 Net income attributable to Fresenius SE & Co. KGaA |
||||
| Sales | 15,972 | 14,164 | 13% | 8% |
| Cost of goods sold | -10,646 | -9,528 | -12% | -7% |
| Gross profit | 5,326 | 4,636 | 15% | 10% |
| Operating expenses | -2,908 | -2,582 | -13% | -8% |
| EBIT (operating result) | 2,418 | 2,054 | 18% | 13% |
| Net interest | -566 | -580 | 2% | 6% |
| Other financial result | -66 | -31 | -113% | -116% |
| Income taxes | -581 | -452 | -29% | -23% |
| Noncontrolling interest in profit | -583 | -497 | -17% | -12% |
| Net income1 | 660 | 514 | 28% | 23% |
| Net income2 | 622 | 494 | 26% | 21% |
| Earnings per ordinary share in € 1 | 4.08 | 3.18 | 28% | 23% |
| Earnings per ordinary share in € 2 | 3.85 | 3.06 | 26% | 21% |
| Earnings per preference share in € 1 | 4.08 | 3.19 | 28% | 23% |
| Earnings per preference share in € 2 | 3.85 | 3.07 | 25% | 20% |
| EBITDA | 3,057 | 2,616 | 17% | 12% |
| Depreciation and amortization | 639 | 562 | 14% | 9% |
The development of EBIT by business segment was as follows:
- Fresenius Medical Care increased EBIT by 15% to €1,451 million (2009: €1,259 million). The EBIT margin rose to 16.0% (2009: 15.6%). This was due to higher average revenue per dialysis treatment and economies of scale. These effects were partially offset by the devaluation of the Venezuelan bolivar and related charges and by lower gross profit margins of acquired dialysis clinics in Europe and Asia-Pacific.
- Fresenius Kabi increased EBIT by 21% to €737 million (2009: €607 million). The EBIT growth was due to the strong operating results in all regions; it was mainly driven by the excellent development in North America, where new product launches and high demand due to supply constraints at competitors had a positive effect. The EBIT margin was 20.1% (2009: 19.7%). EBIT includes €20 million for investments in ongoing efficiency improvements outside of North America. Adjusted by that amount, the EBIT margin was 20.6%.
- Fresenius Helios achieved an excellent EBIT performance. In 2010, this business segment reported EBIT of €235 million (2009: €205 million) thanks to the very good business progress at the established clinics and the continued targeted progress at the clinics covered by the restructuring plan. The latter are clinics which have been in the Fresenius Helios portfolio for less than five years. EBIT grew by 15%. The EBIT margin rose to 9.3% (2009: 8.5%).
- Fresenius Vamed improved EBIT by 14% to €41 million (2009: €36 million). The EBIT margin was with 5.8% on the previous year’s level.
Sales
Reconciliation to group net income