Orpea: the decline in profitability is likely to accelerate in the second half

Orpa unveiled its preliminary results for the first half of 2022 this morning. The Ebitdar margin stands at 18.5% compared to 24.9% in the first half of 2021. The manager of Ehpad is penalized by the reduction in compensation mechanisms relating to Covid -19, by a significant amount of specific 2021 products not renewed, by an inflationary context on purchases (notably energy), but also by a more active recruitment policy. The group expects a drop in profitability over the whole of the 2022 financial year.

Turnover, on the other hand, increased by 10.9% to 2.295 billion euros. “The activity of the first half and the summer months remains supported by the rate of opening of new beds and a gradual improvement in the level of activity”, underlined the group.

The average occupancy rate since the start of the 2022 financial year remains higher than the average level observed over the same period in 2021. This trend is confirmed in the months of July-August. Consequently, Orpa confirms its confidence in its ability to maintain a solid dynamic of revenue growth in the 2022 financial year.

The company considers that the decline in the financial performance of the activities observed in the first half of 2022 compared to the first half of 2021 will extend 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 for the second half of 2022 could then be lower than the level of the first half of 2022.