PARIS (Agefi-Dow Jones)–The operator of retirement homes and clinics Orpea presented Monday preliminary unaudited financial indicators in sharp decline for the first half and warned that the situation could deteriorate further in the second half. .
“For the sake of transparency, we have chosen to communicate our indicators two weeks before the scheduled date because our performance is well below market expectations”, declared Laurent Lemaire, the financial director of Orpea during a conference with journalists.
During the first six months of this year, Orpea’s turnover fell by 10.9% over one year, to 2.3 billion euros. “This amount is down 17 million euros compared to the figure published on July 20, 2022 due to a change in accounting approach for an entity that is no longer taken into account in the scope of consolidation”, added the group said in a statement.
Orpea’s gross operating income before rent (Ebitdar) margin stood at 18.5% between January and June, compared to a rate of 24.9% posted during the corresponding period of 2021. On the first half of 2022, the EBITDA margin contracted by 6.2 percentage points, to 17.9%, while the current operating margin fell by 7.5 percentage points, to 3.6%.
The deterioration of the financial indicators is explained by the inflationary context, the compensation mechanisms linked to the coronavirus pandemic and by the repercussions of various investigations on the management of Orpea’s establishments.
Shaken by the revelations of the book-investigation “Les Fossoyeurs” on the management of its establishments, Orpea has made a series of commitments in order to improve the relationship with the families of residents as well as the working conditions of its employees. It has also largely overhauled its governing bodies with the arrival, on July 1, of Laurent Guillot as managing director and the appointment of Guillaume Pépy, the former boss of the SNCF, as chairman of the board of directors.
“Certain income statement items are still the subject of internal and external work” and, “concerning the determination of non-current items, impairment tests which mainly relate to certain intangible assets are in progress”, warned Orpea. .
Based on the information in its possession, the company estimates that the impairments that could result would be between 170 million and 220 million euros.
Consequently, Orpea estimates that the decline in the financial performance of the activities recorded in the first half will continue into the second half and could, if necessary, be amplified by the additional volatility observed recently on the energy markets.
In this context and depending on the recovery in the occupancy rate, the Ebitdar margin rate in the second half could be lower than its level in the first half. However, Orpea confirmed its confidence in its ability to maintain a solid momentum of revenue growth this year.
The group will publish its consolidated results for the first half of 2022 on September 28, after the close of financial markets.
-Dimitri Delmond, Agefi-Dow Jones; +33 (0)1 41 27 47 31; [email protected] ed: VLV
FINANCIAL RELEASES FROM ORPEA:
orpea-corp.com – Orpea
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September 12, 2022 02:01 ET (06:01 GMT)