Orpea expects FY core earnings of around 710 million euros (updated)
06/11/2023 07:29
(Updates throughout with Q3 revenue, outlook for 2024-26,
background)
Nov 6 (Reuters) - French nursing care provider Orpea
ORP.PA said on Monday it expects full-year core earnings of
around 710 million euros ($760 million), close to the lower end
of its forecast range from earlier this year.
"The negative impact of the weaker-than-projected operating
performance is largely offset by precautionary measures
implemented such as reduced or postponed capital expenditure,
and by the receipt of proceeds from asset disposals," the
company said in a statement.
Orpea last month said it was targeting full-year earnings
before interest, tax, depreciation, amortisation and rent costs
(EBITDAR) at the lower end of the 705 million to 750 million
euros range announced in July.
The group posted third-quarter revenue of 1.31 billion
euros, up 10.2% organically, with an average occupancy rate of
83.8%, up 1.8 percentage points from last year.
Orpea said momentum was positive both internationally and in
the French hospitals segment. It was also helped by price
increases, particularly in Germany, and from the contribution of
facilities opened over the previous 12 months.
The company said it expects full-year revenue of around
5.2 billion euros.
It also said it sees EBITDAR at around 891 million euros in
2024 and around 1.2 billion euros in 2026.
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 the plan implementation is on schedule and it
expects its completion in the coming weeks.
($1 = 0.9315 euros)
(Reporting by Michal Aleksandrowicz in Gdansk; Editing by
Nivedita Bhattacharjee and Varun H K)
((gdansk.newsroom@thomsonreuters.com; +48 58 769 66 00;))