(Boursier.com) — Orpea is providing the market with information this morning on its operational and financial situation as of June 30 and on its liquidity outlook.
And the company anticipates lower revenue growth in 2023 and a lag deemed “substantial” in terms of EBITDAR generation for 2023, of the order of -15% to -20% compared to the forecast for EBITDAR of EUR881m included in the updated November 2022 business plan communicated to the market on May 12.
Orpea is therefore now aiming for a 2023 EBITDAR of between EUR705m and EUR750m.
“This lag is mainly linked to the Group’s French activities. It is mainly due to a lower turnover due to the occupancy rate of EHPADs in France remaining very much behind forecasts in a reputational context that is still difficult: in the first half of 2023, these occupancy rates averaged nearly 83.4%. and retain employees, but also to increase the management rate and improve the support and care of patients and residents”, explains Orpea.
However, the Group’s liquidity trajectory would remain almost unchanged compared to an anticipated cash position of EUR 803 million at the end of 2023. The negative impact on liquidity of the difference in operating performance will indeed be offset “by non- positive recurring tax consequences and the implementation of precautionary measures, in particular the reduction and postponement of capital expenditure, mainly development”, adds Orpea.
Thus, as of June 30, 2023, the Group’s cash amounted to 527 MEUR, in line with the anticipated level, for net financial debt estimated at 9,328 MEUR (including 184 MEUR of accrued interest not yet due; to be compared with net financial debt of EUR 8,897 million as of December 31, 2022 (including EUR 37 million of accrued interest not due). the Group’s main banking partners, namely the D1B tranche of EUR 200 million that can be mobilized at the beginning of August, the D2 tranche of EUR 100 million that can be mobilized at the beginning of September, and the D3 tranche of EUR 100 million that can be mobilized if necessary during November, will make it possible to meet liquidity needs until the execution of the Accelerated Backup Plan.
The anticipated delay in the recovery of operational performance in France should also have repercussions on the Group’s EBITDAR for the years 2024 and 2025. this horizon the level of EBITDAR margin of around 20% which was initially targeted for 2025 in the Business Plan of November 2022 Updated”, further specifies Orpea.
By the end of 2025, and in line with the levels shown in the projections of the Updated November 2022 Business Plan, the Group’s liquidity should remain above EUR 0.55 billion for net financial debt of around 3 EUR.7 billion, with financial leverage remaining below 6x (to be compared to the target of 5.5x appearing in the November 2022 Updated Business Plan) and the Group’s restored capacity to refinance its residual debt when the time comes.