Orpea drops as it sees annual profit at lower end of guidance

Emeis SA

12/10/2023 08:11

** Shares in Orpea  ORP.PA  fall 13% after the French care
home group said it expects annual core profit at the lower end
of its 705-750 million euro ($749.5-797.3 million) outlook
already cut in July
    ** The group, which has been in turmoil since the start of
2022 due to allegations of mistreatment in its French care
homes, said an increase in costs had not been fully offset by
price rises
    ** The group posts H1 earnings before interest, tax,
depreciation, amortisation and rent costs (EBITDAR) of 336
million euros, down from 427 million a year earlier, and bigger
net loss of 371 million euros for the same period
    ** Orpea, which in July won court approval for an
accelerated safeguard plan to restructure its debt, has seen its
shares fall 76% YTD

($1 = 0.9406 euros)

 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))