Care home group Orpea sees annual profit at lower end of guidance (updated)
11/10/2023 18:19
(Adds details in paragraphs 2 to 3 and 5 to 8)
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 that has not been fully offset by price rises.
"We have an inflationary environment that continues to
impact us, both in terms of staff costs and all other expenses,"
the company said in a call with journalists.
The group said it had limited capacity to lift tariffs to
offset cost increases, saying a highly regulated environment
both in France and internationally had left it little room for
manoeuvre.
The company in July cut guidance for its earnings before
interest, tax, depreciation, amortisation and rent costs
(EBITDAR) to 705 million to 750 million euros ($747.6
million-$795.3 million).
Orpea posted EBITDAR of 336 million euros in the first half
of 2023, down from 427 million euros a year earlier.
Its occupancy rate increased overall over the period, except
at nursing homes in its main market France, where it is still
impacted by reputational concerns, the company said.
The group has been in turmoil since the start of 2022, when
allegations of mistreatment in its French care homes sent
shockwaves through the nation. In July, it won court approval
for an accelerated safeguard plan to restructure its debt.
Orpea said it expected a ruling in the first half of
November on a shareholder appeal against French markets watchdog
AMF's decision that a consortium led by Caisse des Depots (CDC)
could take control of the group without having to file a
takeover bid.
($1 = 0.9430 euros)
(Reporting by Diana Mandiá and Federica Mileo; Editing by
Kirsten Donovan and Jan Harvey)
((diana.mandiaalvarez@thomsonreuters.com,
federica.mileo@thomsonreuters.com))