- Sustainable growth momentum confirmed after Q2 2021
rebound
- Q3 Revenue of €1,082m increased by 12.6% of which 6.6% organic,
bringing 9-months growth to 12.4% and organic growth to 6.5%
- Regular increase in occupancy rate in line with improving
health situation
- Largest European network: 91,387 beds in operation, o/w 2,736
opened on the nine first months, and an outpatient capacity of
c.80k sessions per month (c. +30% vs December 2020)
- Secured growth looking forward :
- Greenfield pipeline to 2025 of c.11,500 beds
- Deep M&A pipeline
- Continued roll out of ESG Roadmap and recognition from
Vigeo-Eiris (V.E.) ranking Korian as leader in the Healthcare
sector (#1/47)
- Successful issuance of inaugural social bond for € 300
million diversifying investor base and securing 7 year attractive
rate of 2.25%
Regulatory News:
Korian (Paris:KORI), the leading European care and support
services group for the elderly and fragile, announces its 3rd
quarter and 9-month revenue for 2021.
The 12.6% revenue increase in the third quarter of 2021,
including 6.6% organic, confirms the growth momentum of Korian’s
unique business model. Revenue reached €1,082.3 million compared to
€961.1 million in Q3 2020. In the 9-months to end of September,
revenue reached €3,189.7 million as compared to €2,837.6 million
for the same period in 2020.
Long-term care1 segment grew by 9.9% over the quarter of which
was 7.7% organic on the back of the continuous improvement of
occupancy rates in all countries, maintained pricing and rebasing
of tariffs and public contributions.
Healthcare2 activities grew by 24.5% over the quarter, of which
was 4.4% organic growth, driven by the strong performance of mental
health and improving activity levels in September. Organic growth
of 4.4% is the result of a return to normative level of activity in
August in post-acute clinics.
Community care3 grew by 7.8% of which was 4.5% organic growth
mainly driven by the high level of greenfield deliveries and ramp
up.
Revenue by geography
Revenue (€m)
Variation (%)
3ème quarter 2021
3ème quarter 2020
Reported Growth
Organic Growth
France, Spain, UK*
544.1
455.0
19.6%
10.1%
Germany
270.5
260.3
3.9%
3.6%
Benelux**
150.0
142.4
5.4%
6.5%
Italy
117.6
103.4
13.7%
-0.7%
Total
1,082.3
961.1
12.6%
6.6%
* O/w France: €516,5m in Q3 2021 vs €446.6m in Q3 2020, Spain:
€21.5m in Q3 2021 vs €8.4m in Q3 2020, United-Kingdom: €6.1m in Q3
2021
** O/w Belgium: €130.3m in Q3 2021 vs €127.6m in Q3 2020,
Netherlands: €19.7m in Q3 2021 vs €14.8m in Q3 2020
Revenue (€m)
Variation (%)
9 months 2021
9 months 2020
Reported Growth
Organic Growth
France, Spain, UK*
1,616.0
1,372.1
17.8%
9.0%
Germany
796.2
757.1
5.2%
3.9%
Benelux**
438.3
426.0
2.9%
2.5%
Italy
339.3
282.4
20.1%
6.8%
Total
3,189.7
2,837.6
12.4%
6.5%
* O/w France: €1,560,4m 9-months 2021 vs €1,346.8m 9 months
2020, Spain: €41.8m 9 months 2021 vs €25.3m 9 months 2020,
United-Kingdom: €13.8m 9-months 2021
** O/w Belgium: €380.5m 9 months 2021 vs €386.9m 9 months 2020,
Netherlands: €57.8m 9 months 2021 vs €39.1m 9 months 2020
All geographies contributed to growth with:
- France, Spain and UK exhibited a combined 19.6% growth,
achieving revenue of €544.1 million reflecting successful recent
acquisitions and strong organic growth of 10.1%.
- Germany showed solid growth reaching €270.5 million of
revenue. The 3.9% growth was mainly organic (3.6%).
- Benelux region grew by 5.4%, of which 6.5% was organic, taking
into account two disposals during the summer, reaching €150 million
of revenue driven by a good growth dynamic in the Netherlands.
- Italy continued its dynamic growth with 13.7% growth and
€117.6 million of revenue reflecting the successful integration of
bolt on acquisitions and a slightly negative organic growth of 0.7%
due to the closure of clinics in August, unlike 2020, when activity
was exceptionally maintained during the summer to compensate for
the care not provided during the first pandemic wave.
European network
Over the period the network has grown by 2,736 beds to 91,387
beds from 88,651 at the end of December 2020, of which c.1,200 beds
are from greenfield deliveries.
Over the same period the outpatient capacity of the network has
grown to c.80k sessions per month mainly organic from the increase
in day care capacities in 16 clinics, enabling the Group to meet
the growing needs for specialised outpatient care.
The pipeline continues to represent 14,500 beds to be delivered
by 2025 and the Group is on track to deliver 1,800 greenfield beds
in 2021.
The period has also been marked by the strengthening of
healthcare activities in Italy with different acquisitions
representing 20 facilities for c. 1,200 beds and a capacity of
3,900 outpatient sessions per month. These acquisitions are part of
the bolt on strategy to develop Korian’s ecosystem of care for
patients with chronic diseases around the main Italian cities
(Roma, Firenze and Torino).
The Group plans to have 30% of revenue in healthcare by 2024 and
is aiming to serve health needs in the territories where it is
implanted and to offer diversified care pathways.
Health situation
Regarding Covid-19 Korian’s network reports only 11 facilities
have 4 or more cases at European level4, notably given the high
vaccination coverage (average rate5 of 94% for residents and 92%
for all staff) and maintained strict prevention measures.
The campaign for the 3rd injection6 is progressing well in
France, Germany and Spain, and will begin notably in other
countries in line with local health protocols. As of 25 October,
34% of the Group’s residents had already received their third
dose.
Regarding the seasonal influenza, vaccination campaign has
started in France and will be launched before the end of the month
in most countries where the Group is present.
ESG commitments
Korian is delivering ahead of expectations on its ESG roadmap in
its 5 pillars, with notably:
- On Care excellence:
- 20% of the network is ISO 90017 certified, ahead of our 2021
objective;
- Appointment of Claude Czech, honorary magistrate, as
independent mediator, to facilitate relationships with residents,
patients and their families and to prevent any disputes.
- On Quality at work and employee commitment:
- The signature in May 2021 of a company agreement on
Occupational Health & Safety with all trade unions
representative, the first to be signed by a private operator in the
sector in France;
- Recruitment of 2,600 apprentices in its European network at the
end of September 2021, a 23% increase vs end of December 2020, in
particular confirming the success of its first training centre for
care professionals (CFA soins) in France with more than 600
apprentices.
- On societal commitment:
- Korian foundation in Germany presented in October for the first
time, the award for diversity and respect in care. This award was
granted to the Immanuel Seniorenzentrum Sch�neberg facility located
in Berlin, for its commitment to respectful and culturally
appropriate care for LGBTI people;
- The Group has drawn up a new Ethics charter, on the basis of
numerous contributions from its employees throughout Europe and in
discussion with the employees’ representative bodies. With this
text, Korian and its employees from all countries of the Group
reinforce their commitment to act with ethic, caring and integrity
in their mission of caring for and supporting the elderly and
fragile people.
- On environmental commitment:
- Korian signed in France the 1st ESG commitment charter with 12
suppliers involved in renovation projects;
- In the continuity of its commitment to reduce by 40% its carbon
emission in 2030, the Group is continuing draw its trajectory with
action plans in the main sources of CO2 emissions.
The Group’s commitment to its ESG commitments has recently been
recognised by Vigeo-Eiris (V.E) as the leader in the Healthcare
sector. The very significant increase in the rating of Vigeo-Eiris
linked to our ESG performance (+20 points vs 2020 at 57/100),
reflects the progress made in terms of quality, ethics, social
commitments and environmental impacts. It also reflects a
recognized transparency in Korian’s dialogue with its various
stakeholders, as well as the quality of its governance in terms of
independence and diversity.
Korian also ranks 13th in the “feminization ranking8” for the
representation of women in its governance bodies: 50% in its Board
of Directors, 21% in its Management Committee and 46% in the Top
100 of the Group's senior executives. This longstanding commitment
to gender diversity and parity is an integral part of Korian,
reflected in the implementation of concrete measures and the
objective of having 50% of women in the Top 100 of the Group’s
senior executives by 2023.
Marking a new step in the Group’s ESG strategy, and after the
successes of its €230m sustainability-linked private placement
launched in 2020 and its £200m hybrid green bond priced earlier
this year, Korian successfully priced a social bond for a total
nominal amount of €300m with a maturity of 7 years and a fixed
coupon of 2.25%. This inaugural transaction marks Korian’s
successful entry on the euro public bond market, with a strong
quality and well-diversified orderbook coming from over 70
institutional investors.
Next events: 23 February 2022 – Annual
revenue and Results 2021
About Korian
Korian, the leading European care services group for elderly and
fragile people. www.korian.com
Korian has been listed on Euronext Paris
Section A since November 2006 and is included in the following
indices: SBF 120, CAC Health Care, CAC Mid 60, CAC Mid & Small
and MSCI Global Small Cap
Euronext ticker: KORI - ISIN: FR0010386334 –
Reuters: KORI.PA – Bloomberg: KORI.FP
1 Long-term care: Nursing Homes 2 Healthcare activities:
Post-acute, rehabilitation, mental health 3 Community care:
Assisted living, co-living for seniors, home care 4 As of 25
October 2021 5 Average vaccination rate for all countries in the
network (second injection) 6 As a reminder, this campaign concerns
only people over 65 or 80 years of age, depending on the country,
and not staff. 7 ISO 9001 defined as the international standard
that specifies requirements for a quality management system (QMS).
Organizations use the standard to demonstrate the ability to
consistently provide products and services that meet customer and
regulatory requirements. 8 Set up in 2013 in France, as part of the
follow-up to the Copé-Zimmermann law, the “feminization ranking”
makes it possible to establish an annual ranking of the 120 largest
French companies (SBF120) by highlighting their commitment to the
representation of women in their governance bodies and more
generally in favour of professional equality between women and
men.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211028005878/en/
INVESTOR RELATIONS
Sarah Mingham VP Investor Relations & Financing
sarah.mingham@korian.com Tel: +33 (0)1 55 37
53 55
Carole Alexandre Deputy Head of Investor Relations
carole.alexandre@korian.com Tel: +33 (0)7 64
65 22 44
MEDIA CONTACTS
Jean-Marc Plantade Director of Communications
jean-marc.plantade@korian.fr Tel: +33 (0)7 62
90 32 58
Cyrille Lachèvre Deputy Head of Press Relations
cyrille.lachevre@korian.fr Tel: +33 (0)7 61
53 54 86
Marjorie Castoriadis Head of Media Relations
marjorie.castoriadis@korian.fr Tel: +33 (0)7
63 59 88 81
Korian Medica (EU:KORI)
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