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

Emeis SA

12/10/2023 09:03

(Adds analyst's comment in paragraphs 4 and 5, updates shares)
    ** Shares in Orpea  ORP.PA  fall around 11% after the French
care home group said it expected 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 EBITDAR of 336 million euros  ($356.80
million), down from 427 million a year earlier, and bigger net
loss of 371 million euros
    ** AlphaValue's analyst Yi Zhong points out that Orpea's
planned capital increases and the massive dilution resulting
from it should also explain the share price drop
        ** "If the market is efficient as it should be, the
share price should already reach 0.02 euros for months", she
says 
  
    ** Orpea, which in July won court approval for an
accelerated safeguard plan to restructure its debt, has seen its
shares fall 79% YTD

($1 = 0.9406 euros)



($1 = 0.9417 euros)

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