2023 REVENUE: €5.2BN, UP +11.0% VS. FY2022
(ORGANIC: +9.5%)
AVERAGE OCCUPANCY RATE IN 2023: UP +1.5 POINT
VS. 2022
FINANCIAL RESTRUCTURING COMPLETED FOLLOWING THE
THIRD CAPITAL INCREASE
ESTIMATED KEY FINANCIAL INDICATORS FOR 2023:
EBITDAR OF AROUND €690M AND PRE-IFRS 16 EBITDA OF AROUND €200M
Regulatory News:
Along with the publication of its 4th quarter and full-year
2023 revenue, ORPEA (Paris:ORP) confirms the acceleration of its
transformation while maintaining its sales growth momentum for the
year ending 31 December 2023 (unaudited figures), with an average
2023 occupancy rate up +1.5 points on 2022. The Group also provides
an update on its financial restructuring and details of the main
financial information communicated for 2023.
Revenue growth remained solid in the fourth quarter of 2023,
with an increase of +11.7%, of which +9.7% was organic. Over the
full 2023 financial year, revenue rose by +11.0%, of which +9.5% on
an organic basis, giving sales for the period of €5,198 million, in
line with expectations. The Group's activity as a whole is growing,
with an average occupancy rate of 84.0% in the 4th quarter of 2023,
up +1.9 points compared with the 4th quarter of 2022, despite a
0.9-point decrease within the perimeter of retirement homes in
France.
With regard to its consolidated financial statements for the
year ending 2023, which will be published in May 2024 at the
latest, ORPEA ("the Company") wishes to reiterate and clarify the
main estimates published on 18 January when the Third Amendment to
the 2022 Universal Registration Document was made available
(link):
- EBITDAR is expected to be around 690 million euros
(unchanged) ;
- Pre-IFRS 16 EBITDA is expected to be around 200 million
euros (c. -5% below the estimate published on 18 January 2024)
;
- a number of items are likely to have a material non-cash
impact on the consolidated financial statements for the year ending
31 December 2023:
- Revenue growth in Q4 and for the full
year 2023
in €m (unaudited)
Quarterly figures
12 months to December
Q4 2022
Q4 2023
Change
o/w organic1
2022
2023
Change
o/w organic1
France Benelux UK Ireland
715
788
10,2%
7,2%
2 802
3 037
8,4%
6,2%
Central Europe
312
348
11,5%
10,9%
1 197
1 352
12,9%
12,2%
Eastern Europe
113
132
17,4%
16,9%
435
515
18,4%
18,8%
Iber. Peninsula and Latam
63
75
17,9%
18,6%
242
286
18,2%
18,3%
Other countries
1
2
nm
nm
4
7
nm
nm
Total revenue
1 205
1 346
11,7%
9,7%
4 681
5 198
11,0%
9,5%
1 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.
Composition of the geographical areas: Central Europe (Germany,
Italy and Switzerland), Eastern Europe (Austria, Poland, the Czech
Republic, Slovenia, Latvia, Croatia), Iberian Peninsula and Latam
(Spain, Portugal, Brazil, Uruguay, Mexico, Chile), Rest of the
World (China, United Arab Emirates).
Group revenue in Q4 2023 amounted to €1,346 million
(unaudited), up +11.7%, including +9.7% organic growth. The Group's
activity as a whole is on the rise, with an average occupancy rate
of 84.0% in Q4 2023, up +1.9 points on Q4 2022.
In France Benelux UK Ireland, revenue rose by +10.2% (of
which +7.2% organic). Organic growth was primarily due to the
contribution of new openings in the region (Netherlands) and an
increase in the occupancy rate in Ireland. The region also
benefited from the consolidation of facilities in Belgium.
In France, the medical and rehabilitation care and Mental Health
Clinics activity is growing, with an occupancy rate of over 90%,
confirming the diversity of expertise developed within the
facilities. The average occupancy rate for retirement homes was
84.0% in the 4th quarter of 2023, down 0.9 points compared with the
same period in 2022.
Revenue in Central Europe rose by +11.5% (of which +10.9%
organic), benefiting in particular from favorable pricing trends in
Germany and an increase in the average occupancy rate in the
region.
In Eastern Europe, revenue rose by +17.4% (mainly
organic), due to the continuing increase in activity levels at the
facilities opened in the various countries of this zone.
Lastly, revenue in the Iberian Peninsula and Latin
America region rose by +17.9%, essentially on an organic basis.
Activity growth was particularly strong in Spain, the zone's
main contributor, thanks to an increase in occupancy rates, the
number of beds and average prices.
For the full year 2023, consolidated revenue amounted to
€5,198 million (unaudited figure), an increase of +11.0%, of which
+9.5% was organic.
Thus, despite revenue growth in France being impacted by the
situation in retirement homes (average occupancy rate 2023: 83.6%,
down -2 points on 2022), the Group is benefiting from its
geographical diversity, with international activities characterized
by high growth rates, benefiting from both a marked increase in
occupancy rates (nearly +1.5 points at Group level over the full
2023 financial year) and favorable price effects.
Summary of changes in occupancy rates
(for the quarter and the full year)
Average occupancy rate (unaudited)
Quarterly
12 months
Q4 2022
Q4 2023
Var.
2022
2023
Var.
France Benelux UK Ireland
83.4%
84.3%
+0.9 pt
83.6%
83.4%
-0.2 pt
Central Europe
79.1%
82.5%
+3.4 pts
79.1%
81.9%
+2.7 pts
Eastern Europe
82.9%
86.8%
+3.9 pts
81.9%
85.6%
+3.8 pts
Iber. Peninsula and Latam
82.2%
85.9%
+3.6 pts
78.0%
83.6%
+5.6 pts
Other countries
ns
ns
ns
ns
ns
ns
Group total
82.1%
84.0%
+1.9 pt
81.6%
83.1%
+1.5 pt
- Update on the financial
restructuring
Following the Rights Issue of €390 million, the settlement and
delivery of which took place on February 15th, the Company wishes
to point out that, from 20 February 2024 to 21 March 2024, a
reverse share split on the Shares making up the Company's share
capital will be carried out such that 1,000 existing Shares with a
par value of €0,01 each will be exchanged for one (1) new Share
with a par value of €10 each (the "Reverse Share Split"), which was
the subject of a resolution approved by the Company's annual
general meeting of shareholders held on 22 December 2023. Details
of the Share Consolidation and its expected timetable were set out
in a press release issued by the Company on 5 February 2024
(link).
- Consolidated financial statements at
31 December 2023: estimates of EBITDAR, EBITDA pre-IFRS 16 and main
items likely to have a material impact
To date, the Company estimates that EBITDAR and pre-IFRS 16
EBITDA for the 2023 financial year should be around €690 million
and €200 million respectively, i.e. less than 5% below the estimate
for this management indicator communicated on 18 January.
In addition, the Company reminds below the items likely to have
a material impact on the consolidated income statement for the year
ended 31 December 2023, which is expected to be published no later
than May 2024:
- an accounting entry in respect of the financial restructuring
operations carried out in 2023, and more specifically the
conversion into equity of ORPEA S.A.'s Unsecured Debt: in
accordance with the provisions of IFRS 9 (IFRIC 19 interpretation),
the Group will recognize a positive impact (non-cash) on Group net
income of around 2.7 billion euros, corresponding mainly to the
difference between :
- on the one hand, the book value of ORPEA S.A.'s Unsecured Debt
repaid and/or equitized (i.e. nearly 3.9 billion euros) on the
settlement-delivery date of the Equitisation Capital Increase on 4
December 2023; and
- on the other hand, the value received as consideration in cash
(72 million euros) and in the form of new shares issued as part of
the Equitisation Capital Increase (this consideration representing
a fair value of around 964 million euros based on a closing share
price of 0.0152 euro on 4 December 2023, the settlement-delivery
date of the Equitisation Capital Increase),
net of miscellaneous expenses related to the financial
restructuring incurred during 2023 and/or provisioned at 31
December 2023 (approximately 120 million euros);
- - a negative impact on net income (non-cash) due to additional
impairments on assets (non-cash) carried on the balance sheet at 31
December 2023, amounting to around 0.4 billion euros, mainly as a
result of revised real estate yields (up 0.5% on average), weighted
average costs of capital in certain countries, and business plans
at facility level as part of the impairment tests carried out under
IAS 36.
- Cash and financial debt at 31 December
2023 (unaudited figures)
The cash position at 31 December 2023 is estimated at around
€645 million (unaudited figure), in line with the level forecast in
the Business Plan as updated in the First Amendment to the 2022
Universal Registration Document. Gross financial debt (excluding
IFRS 16 and IFRS 5) at end-December 2023 is estimated at €5.3
billion (unaudited figure).
At 31 January 2024, the Group's liquidity position stood at
around €935 million, including an undrawn credit facility of €400
million under the Additional Financing agreement implemented as
part of the accelerated safeguard procedure with its main banking
partners.
In accordance with the timetable, on 15 February 2024 the
Company received the net proceeds of the third and final capital
increase under the accelerated safeguard plan.
DISCLAIMER
This document contains forward-looking statements that involve
risks and uncertainties, including those included or incorporated
by reference, concerning 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 estimate precisely, such as future market conditions. The
forward-looking statements contained in this document constitute
expectations of future events and should be regarded as such.
Actual events or results may differ from those described in this
document due to a number of risks or uncertainties described in
Chapter 2 of the 2022 Universal Registration Document dated 7 June
2023, as amended in Chapter 2 of the first, second and third
amendments to the Company's 2022 Universal Registration Document
dated 10 November 2023, 5 December 2023 and 17 January 2024, which
are available on the Company's website and that of the AMF
(www.amf-france.org).
About ORPEA
ORPEA is a leading global player, expert in providing care for
all types of frailty. The Group operates in 20 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
Since December 2023, the ORPEA Group is held at 50.2% by Caisse
des Dépots, CNP Assurance, MAIF and MACSF Épargne Retraite.
ORPEA is listed on Euronext Paris (ISIN: FR0000184798) and is a
member of the SBF 120 and CAC Mid 60 indices
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240215994426/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
Investor Relations Director Tel. : 07 70 29 53 74
i.herrier-naufle@orpea.net Image7 Laurence Heilbronn 06 89
87 61 37 lheilbronn@image7.fr
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