Regulatory News:
ORPEA SA (the "Company") (Paris:ORP) today announces
its consolidated revenue for the 1st half of 2023.
While occupancy rates of retirement homes in France remained
below expectations, the 2nd quarter of 2023 confirmed the trend
observed in the 1st quarter of 2023, with growth of +11.1% vs. the
same period last year. This is the result of an overall increase in
occupancy rates, with the exception of France, an increase in
installed capacity with the contribution of recently opened
facilities, and the effects of price increases, which were
particularly marked in Central Europe.
Overall, sales for the first half of 2023 totaled €2,539
million, corresponding to year-on-year growth of +10.7%, mostly
organic.
As a reminder, and as indicated in the press release
published on July 13th, the Company anticipates lower sales growth
and a substantial lag in EBITDAR generation for the full year 2023,
in the range of -15% to -20% compared with the EBITDAR forecast of
€881 million set out in the November 2022 Updated Business Plan
communicated to the market on May 12th, 2023 (i.e. EBITDAR 2023 of
between €705 million and €750 million).
With regard to the financial restructuring process, the
Company reminds that the Accelerated Safeguard Plan (“Plan de
Sauvegarde Accélérée”), as approved by the Nanterre Specialized
Commercial Court (link) on 24 July through a cross-class
cram down, provides for the implementation of three capital
increases, starting in the last quarter of 2023 and after the
lifting of the last condition precedent1, which will result in a
massive dilution for existing shareholders. After these operations,
and in the absence of reinvestment, they would hold around 0.04% of
the capital, with a theoretical share value of €0.02.
In €m
Quarterly figures
Half-year figures (30
June)
Q2 2022
Q2 2023
Change
o/w organic2
H1 2022
H1 2023
Change
o/w organic2
France Benelux UK Ireland
712
769
+8.0%
+4.6%
1,391
1,489
+7.0%
+5.2%
Central Europe
294
335
+14.0%
+13.3%
577
658
+13.9%
+12.9%
Eastern Europe
109
129
+18.7%
+18.9%
210
250
+19.2%
+19.3%
Iberian Peninsula and Latam
59
69
+18.4%
+17.7%
114
139
+21.4%
+19.7%
Other countries
0,9
1,8
ns
ns
1,9
3,6
ns
ns
Total revenue
1,175
1,305
11.1%
+8.8%
2,295
2,539
+10.7%
+9.1%
1. Q2 2023 revenue
Revenues reached €1,305 million in the 2nd quarter of 2023, a
year-on-year increase of +11.1%, including organic growth of
+8.8%.
Continuing from the 1st quarter of 2023, activity in the 2nd
quarter is up in all geographical areas, thanks to average
occupancy rates that are generally up and the contribution of
facilities opened in the last 12 months.
2. H1 2023 revenue
For the first half of 2023, revenue amounted to €2,539 million,
up +10.7% compared to the 1st half of 2022, of which +9.1%
organically.
The overall level of activity in clinics both in France and
internationally, as well as in retirement homes outside of France,
is increasing. This evolution is illustrated at the global level,
by an average occupancy rate up +136 bps compared to the 1st half
of 2022, at 82.7%.
In the France Benelux UK Ireland area, revenue amounted
to €1,489 million over the 1st semester, up +7.0% (including +5.2%
on an organic basis) compared to the first half of the previous
year.
In France, nursing home activity remains far from historical
levels, with an average occupancy rate of 83.4% over the period as
a whole, down on the same period last year (86.0%). Clinics
(Medical and Rehabilitation Care, Mental Health), on the other
hand, are experiencing an increase in activity levels, illustrating
the diversity of activities and specialties developed within the
facilities, in the various regions where the Group is active.
Elsewhere in the region, Belgium benefited from the inclusion of 19
new facilities in its scope of consolidation, and business grew
despite the closure of seven facilities in Brussels, while the
Netherlands posted sustained growth thanks to the ramp-up of new
facilities.
In Central Europe, sales rose by 13.9% (+12.9% organic)
to €657 million over the half-year. Germany and Switzerland
reported good activity momentum over the half-year, with occupancy
rates up in both the retirement homes and clinics. In Germany, the
good momentum also reflects the premium positioning on this
market.
In Eastern Europe, sales rose by 19.2% to €250 million
over the half-year, benefiting from a marked increase in the
occupancy rate of facilities opened over the past 12 months.
In the Iberian Peninsula and Latin America region, sales
came to €139 million for the first half, up 21.4%, mainly on an
organic basis, reflecting a marked increase in occupancy rates in
Spain, the region's main contributor.
Average occupancy rate
by geographical areas
Average occupancy rate
Quarterly figures
Half-year figures
Q2 2022
Q2 2023
Change
H1 2022
H1 2023
Change
France Benelux UK Ireland
83.4%
82.5%
(91)bps
84.2%
83.1%
(105)bps
Central Europe
79.4%
82.0%
+268bps
78.7%
81.8%
+304bps
Eastern Europe
81.9%
85.8%
+387bps
81.4%
84.6%
+323bps
Iberian Peninsula and Latam
75.3%
81.8%
+647bps
74.8%
82.5%
+766bps
Other countries
ns
ns
ns
ns
ns
ns
Total group
81.2%
82.4%
+118bps
81.3%
82.7%
+136bps
3. Update on the ash and debt position
at June 30th, 2023
The Group's cash position at June 30, 2023 is estimated at €527
million (unaudited figure), in line with expectations, for a net
financial debt of €9,328 million (including accrued interest of
€184 million; unaudited figure and excluding other IFRS
adjustments).
Over the 2nd half of 2023, liquidity requirements until the
completion of the Accelerated Safeguard Plan will be covered by
additional financing arranged by the Group's main banking partners.
In particular, tranche D1B of €200 million should be drawn down by
early August 2023, all conditions precedent having been met.
About ORPEA
ORPEA is a leading global player, expert in providing care for
all types of frailty. The Group operates in 21 countries and covers
three core businesses: care for the elderly (nursing homes,
assisted living facilities, homecare and services), post-acute and
rehabilitation care and mental health care (specialized clinics).
It has more than 76,000 employees and welcomes more than 267,000
patients and residents each year.
https://www.orpea-group.com/en
ORPEA is listed on Euronext Paris (ISIN: FR0000184798) and is a
member of the SBF 120, MSCI Small Cap Europe and CAC Mid 60
indices.
Disclaimer - forward-looking information
This press release contains forward-looking statements that
involve risks and uncertainties, including those included or
incorporated by reference, regarding the Group's future growth and
profitability that could cause actual results to differ materially
from those indicated in the forward-looking statements. These risks
and uncertainties relate to factors that the Company cannot control
or accurately estimate, such as future market conditions. The
forward-looking statements in this press release constitute
expectations of future events and should be treated as such. Actual
events or results may differ from those described in this document
due to a number of risks or uncertainties described in the
Company's 2022 Universal Registration Document, which is available
on the Company's website and on the AMF website
(www.amf-france.org).
---
1 The final condition precedent is the purging of appeals lodged
against the waiver of the Caisse des Dépôts-led consortium's
obligation to launch a takeover bid for ORPEA shares, granted on
May 26, 2023.The decision by the Paris Court of Appeal is expected
in the 4 quarter of 2023.
2 Organic growth of Group revenue reflects the following
factors: 1. The year-on-year change in the revenue of existing
facilities as a result of changes in their occupancy rates and per
diem rates; 2. The year-on-year change in the revenue of
redeveloped facilities or those where capacity has been increased
in the current or year-earlier period; 3. Revenue generated in the
current period by facilities created during the year or
year-earlier period, and 4. the change in revenue of recently
acquired facilities by comparison with the previous equivalent
period
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version on businesswire.com: https://www.businesswire.com/news/home/20230726101372/en/
Investor Relations ORPEA Benoit Lesieur Investor
Relations Director b.lesieur@orpea.net
Toll-free number for shareholders : 0 805 480 480
Investor Relations NewCap Dusan Oresansky Tel: 01
44 71 94 94 ORPEA@newcap.eu
Press Relations ORPEA Isabelle Herrier-Naufle
Press Relations Director Tel: 07 70 29 53 74
i.herrier-naufle@orpea.net
Image7 Charlotte Le Barbier // Laurence Heilbronn 06 78
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