Care home group Orpea sees annual core profit at lower end of guidance
11/10/2023 17:15
Oct 11 (Reuters) - French care home group Orpea ORP.PA
on Wednesday said it expects its annual core profit to come in
at the lower end of a range announced in July, citing an
increase in costs which has not been fully offset by price
rises.
The company, which has been at the centre of allegations of
malpractice at its retirement residences in France, in July cut
guidance for its earnings before interest, taxes, depreciation,
amortisation and rent costs (EBITDAR) to 705 million to 750
million euros.
Orpea posted EBITDAR of 336 million euros in the first half
of 2023, down from 427 million euros in the year earlier period,
mainly due to an increase in staffing costs and persistent
inflation affecting the cost of energy, food and medical
products, among other things.
(Reporting by Diana Mandiá and Federica Mileo; Editing by
Kirsten Donovan)
((diana.mandiaalvarez@thomsonreuters.com,
federica.mileo@thomsonreuters.com))