French care home group Emeis cuts core profit target for 2024 (updated)
17/04/2024 07:59
(Adds CFO quote in paragraph 3, further context on past trouble
in paragraphs 6-8)
April 17 (Reuters) -
France's Emeis ORP.PA , formerly known as Orpea, cut its
2024 core earnings target on Wednesday, citing a slower than
expected recovery of its French retirement home business.
The care home operator expects earnings before interest,
tax, depreciation, amortisation, and restructuring costs
(EBITDAR) of between 800 million and 835 million euros ($850
million and $887 million) for the financial year, down from the
891 million euros it had forecast in November.
"In a context where the recovery of our activities in France
is taking a little longer than expected - particularly in the
retirement home sector - and is less favourable than
anticipated, we are very strict about controlling our
investments," Chief Financial Officer Laurent Lemaire told
reporters in a call.
In 2023, Emeis' EBITDAR fell more than 10% to 696
million euros due to high inflation and lower-than-expected
occupancy rate at its nursing homes in France, it said in a
statement.
This is the group's first earnings report since it
finalised the restructuring of its debt and rebranded as Emeis
in an apparent effort to move on from the scandals and financial
troubles that plagued it in the past two years.
The group has been in turmoil since the beginning of 2022,
when allegations of mistreatment in its French care homes sent
shockwaves throughout France and caused much soul-searching over
how the elderly are treated in nursing homes.
Emeis has rejected the allegations of widespread abuse.
Last year, it underwent a financial restructuring in
which investors led by France's Caisse des dépôts et
consignations (CDC) took control of it, making France's
government its main shareholder.
($1 = 0.9415 euros)
(Reporting by Stéphanie Hamel in Gdansk; Editing by Milla Nissi
and Louise Heavens)
((stephanie.hamel@thomsonreuters.com))