Orpea sees its net profit drop by 60% and signs an agreement with the banks to ensure its financing


The financing agreement must enable the group to “respond to the current context of uncertainty”.

The group of private nursing homes Orpea, in turmoil since the release in January of an investigative book, announced on Friday that it had signed an agreement with its banks to ensure its financing in the face of the uncertainties weighing on the company, after a plunge nearly 60% of its annual net profit. This agreement falls within the frameworkan amicable conciliation procedure“, to prevent difficulties, open to the Commercial Court of Nanterre, said the group in a press release. “This agreement with the banks responds to the current context of uncertainty weighing on Orpea, as well as closed access to the financial markets and the slowdown in the asset disposal program initially envisaged“, explained Orpea.

For the current year, Orpea expectsto face exceptional expenses related to the management of the crisis and its consequences“. It also expects its profitability to be affected by the rise in inflation which is impacting “energy costs and wages in some countries“. The group saysconfident about the growth momentumof its 2022 revenue but has not published any forecast figures. In the first quarter, turnover increased by 9% to 1.12 billion euros. Last year, its net profit fell by 59.3% compared to 2020 to 65.2 million euros, due in particular to a provision of 83 million euros “for risks and charges relating to estimated risks for the years 2017-2021 following administrative investigations» which the group was the subject of. In this context, it plans not to pay a dividend.

The group has been under fire from critics since the publication at the end of January of the book-investigation by Victor Castanet, The Gravediggers. The independent journalist denounced in particular the mistreatment of residents and the misuse of public funds. A report commissioned by the government in the process pointed to serious dysfunctions in early April. The State filed a complaint and demanded the restitution of public grants allegedly diverted from their purpose. Since the end of April, the group has been the subject of a judicial investigation, opened in Nanterre, on suspicion of institutional mistreatment or financial offences.



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