Emeis falls on EBITDAR outlook downgrade

Emeis SA

29/07/2024 09:18

** Shares in Emeis  EMEIS.PA  fall 9.6% after the French
care home group revised its EBITDAR growth downwards
    ** "The profit warning reveals a harder operational recovery
 in its French activities," says analyst Yi Zhong, adding the
Nursing homes unit is most vulnerable
    ** The company now sees 2024 EBITDAR growth range of 0-5%,
equalling between €700m and €730m, vs €800m to €835m seen
previously
    ** "The breakeven occupancy rate in French nursing homes is
likely to be close to 89% nowadays, marginally higher than
pre-scandal and significantly higher than the current figure of
83.1% in Q2," says Zhong
    ** "The industry-wide difficulties in hiring and retaining
staff under long-term contracts are not helping with the
profitability recovery, and neither is salary inflation." Zhong
adds
    ** Including today's fall, stock has dropped by 27.02% YTD​

 (Reporting by Dimitri Rhodes)
 ((Dimitri.Rhodes@thomsonreuters.com;))