Orpea warns that its margin could continue to deteriorate in H2, the stock falls | Photo credit: Shutterstock
PARIS, Sept 12 (Reuters) – Orpea said on Monday its financial performance is expected to continue to deteriorate in the second half, with the potential impact of soaring energy costs.
Following this warning, the title of the group showed a drop of nearly 19% around 10:10 a.m. on the Paris Stock Exchange, the lowest since 2005.
The retirement home group, which is at the heart of investigations into resident abuse charges, said its operating margin on earnings before interest, taxes, depreciation, amortization and restructuring or leasing costs (Ebitdar ) in the first half fell to 18.5% from 24.9% a year earlier.
“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 1st half of 2022”, announced the company in a press release.
Operating profitability is affected by the reduction in compensation mechanisms relating to COVID-19 and by the increase in food, energy and salary prices, she said.
The group’s refinancing plan, on the other hand, is proceeding as planned, its financial director Laurent Lemaire told the press, without giving further details.
Orpea announced last June that a report had confirmed malfunctions and faulty behavior in some of its establishments. (Report Dominique Vidalon, French version Federica Mileo, edited by Jean-Michel Bélot)