SUMMARY OF THE FISCAL YEAR
SALES
Consolidated sales increased by 5% to € 11,358 million in 2007. Excellent organic growth of 6% was achieved, while acquisitions contributed 6% to growth. Divestitures reduced sales by 2% and currency translation had a negative impact of 5%.
- In North America sales increased by 10% in constant currency due to a good organic growth of 5% and the full-year Renal Care Group consolidation.
- In Europe sales grew by 7% with organic sales growth contributing 5%.
- Strong organic growth rates were achieved in the emerging markets with 9% in Asia-Pacific, 10% in Latin America and 26% in Africa.
EARNINGS
Operating income (EBIT) grew by 11% and by 17% in constant currency to € 1,609 million (2006: € 1,444 million). All the business segments contributed to this excellent earnings growth with double-digit rates.
| in million € | 2007 | 2006 | Change | Change in constant currency |
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| EBIT | 1,609 | 1,444 | 11% | 17% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest | -368 | -395 | 7% | 2% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income taxes |
-448 | -414 | -8% | -14% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Minority interest |
-383 | -305 | -26% | -32% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | 410 | 330 | 24% | 28% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- The EBIT margin improved by 80 basis points to 14.2%.
- Group net interest was € -368 million (2006: € -395 million, including one-time expenses of € 30 million for the early refinancing of Group debt).
- Net income was € 410 million, an excellent increase of 24%. Earnings per ordinary and preference share rose by 23%.
CASH FLOW
Fresenius generated a high operating cash flow of € 1,296 million in 2007 (2006: € 1,052 million). Key driver was the strong growth in earnings. The cash flow margin rose to 11.4% (2006: 9.8%).
- Cash flow before acquisitions and dividends increased to € 630 million (2006: € 481 million) despite the high investments in property, plant and equipment. It was sufficient to finance all acquisitions and dividends.
- Free cash flow after acquisitions and dividends was € 33 million.
BALANCE SHEET
The balance sheet is solid. Total assets rose by 2% to € 15,324 million. In constant currency, the increase was 8%.
- Shareholders’ equity including minority interest increased by 6% to € 6,059 million.
- The equity ratio including minority interest improved to around 40%.
- Debt decreased by 3% to € 5,699 million (December 31, 2006: € 5,872 million). In constant currency, debt increased by 3%.
- The net debt/EBITDA ratio improved to 2.6 (December 31, 2006: 3.0).