UPDATE 2-Fresenius raises outlook on strong quarterly results, exits Vamed

(Adds Vamed divestment in paragraph 3, context in paragraph 4, peer comparison in paragraph 9)

By Tristan Veyet

May 8 (Reuters) - German healthcare group Fresenius first-quarter results beat expectations, the company said on Wednesday, citing strong performance at its Kabi and Helios businesses, prompting it to raise its full-year outlook.

First-quarter earnings before interest and tax (EBIT) were 633 million euros ($680 million), above analysts' expectations of 606 million euros, according to a consensus of forecasts from Vara Research.

In a bid to get leaner, Fresenius also said that it would sell its investment unit, Fresenius Vamed, completing its portfolio restructuring. The business accounted for 10% of its revenue last year.

Since his appointment in October 2022, CEO Michael Sen has been overhauling the group to cut costs and debt after it was hit by a decline in earnings at its former dialysis unit, Fresenius Medical Care.

The Hessian-based firm raised its full-year outlook after the strong first quarter and due to improved business prospects for its maker of generic hospital drugs, Fresenius Kabi.

It now expects its organic group revenue to grow by 4%-7% this year, up from the 3%-6% it had expected earlier.

Fresenius also hiked its EBIT margin expectations to 15% to 16% compared with a previous forecast of around 15%.

Fresenius' results echo those of Fresenius Medical Care which beat first-quarter operating earnings expectations on Tuesday amid higher pricing and cost cuts.

($1 = 0.9312 euros) (Reporting by Tristan Veyet in Gdansk; Editing by Tom Hogue and Louise Heavens)