Operations and Business Environment - Fresenius Medical Care

02. 2
Our Fiscal year
02. 2 Results of Operations,
Financial Situation, Assets and Liabilities
68
On March 31, 2006, Fresenius Medical Care completed
the acquisition of Renal Care Group (RCG). Since April 1,
2006, RCG’s business activities have been included in
our consolidated financial statements and consolidated
statements of cash flows. Additional analyses of this
transaction and information on other acquisitions can
be found in the financial report from page 60 onwards
(note 3).
Results of Operations
Revenue
In 2006, our revenue rose substantially by 26 % to
$ 8.50 billion. Currency-adjusted growth was 25 %.
This increase is primarily due to the acquisition of RCG.
Acquisitions contributed 15 percentage points to the
revenue increase. Organic growth was 10 %.
As a vertically integrated dialysis company, Fresenius
Medical Care offers a full range of dialysis products
as well as dialysis services in the form of high-quality
treatments in dialysis centers around the world. While
dialysis services continued to be the largest revenue
generator in the North American region, dialysis products
dominated in the International region, accounting
for 63 % of revenue.
The dialysis services business in all regions achieved
revenue growth of 31% to $ 6.38 billion, or 75 % of
total revenue, a higher share than in the previous year
(2005: 72 %). At constant currency, dialysis services
revenue also grew by 31%. Organic growth accounted
for 10 percentage points while acquisitions accounted
for 21 percentage points. A same-market increase of
4 % in the number of treatments performed as well as
a 6 % increase in the revenue per treatment accounted
for the organic revenue growth.
Providing high-quality treatments in our dialysis clinics
is the core of our dialysis services. To raise our revenue
from dialysis services, it is essential that we increase the
number of dialysis treatments performed.
At the end of 2006, our company operated more than
2,100 dialysis centers, an increase of 25 % compared
with a year earlier. As at December 31, 2006, we treated
a total of about 163,500 patients in these clinics,
24 % more than in the previous year. The number of
treatments rose by 20 % to about 23.74 million. Thus,
the number of dialysis patients we treated grew significantly.
The acquisition of RCG was a primary reason. As
a result of the increase in the number of patients treated,
the number of treatments carried out by Fresenius
Medical Care also rose.
Revenue Development
$ in millions 2006 2005 Change Organic Currency Trans- Acquisitions / Share in
Growth lation Effects Divestments Total Revenue
North America
International
Total
6,025
2,474
8,499
4,577
2,195
6,772
32 %
13 %
26 %
9 %
12 %
10 %
1%
1%
23 %
15 %
71%
29 %
100 %
Fresenius Medical Care 2006