- organic growth: +4.0% over the quarter and
+5.5% over 9 months
- Dynamic activity outside of France
Regulatory News:
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The ORPEA Group (Paris:ORP) today announced its revenue for the
third quarter of 2022 and the first nine months of the year, to 30
September 2022.
Evolution of revenue in the third
quarter of 2022 and over the first nine months of the
year
In €m
Quarterly figures
9 months to 30/09
Q3 2021
Q3 2022
Change
o/w organic1
2021
2022
Change
o/w organic1
France Benelux UK Ireland
681.6
695.8
+2.1%
+1.6%
1,959.4
2,086.9
+6.5%
+4.4%
Central Europe
282.5
307.7
+8.9%
+5.3%
798.8
885.0
+10.8%
+5.6%
Eastern Europe
100.6
112.5
+11.9%
+10.1%
293.4
322.6
+9.9%
+7.9%
Iber. Peninsula and Latam
44.4
64.3
+45.0%
+17.7%
125.5
178.5
+42.2%
+16.1%
Rest of the World
0.8
1.0
+19.9%
+8.6%
2.3
2.9
+26.0%
+18.6%
Total revenue
1,109.9
1,181.3
+6.4%
+4.0%
3,179.4
3,475.8
+9.3%
+5.5%
Composition of the geographical areas: Central Europe (Germany,
Italy and Switzerland), Eastern Europe (Austria, Poland, the Czech
Republic, Slovenia, Latvia, Croatia), Iberian Peninsula and Latam
(Spain, Portugal, Brazil, Uruguay, Mexico, Colombia, Chile), Rest
of the World (China).
The Group's revenue in the third quarter of 2022 amounted
to €1,181.3m, up 6.4%, of which 4.0% was organic growth.
In France Benelux UK Ireland, revenue growth was 2.1% and
was mainly organic (+1.6%). The growth observed in both the
Netherlands and Belgium made it possible to offset the slight
decrease observed in France (-0.6%), resulting from a higher basis
of comparison over the same period in 2021, with retirement homes
activity still impacted by the crisis context. Thus, during the 3rd
quarter, after the decline observed between January and April 2022,
the occupancy rate in retirement homes in France has risen slightly
to an average of 85.4%, i.e. an increase of +0.9 point compared to
the 2nd quarter of 2022 (a level nevertheless approximately 1.5
points lower than the average rate observed in the third quarter of
2021). On the other hand, the turnover of the clinics in France
showed a good resilience, remaining almost stable compared to the
3rd quarter of 2021.
The rest of the Group's activity, in line with previous
quarters, showed good momentum in the third quarter thanks to
rising occupancy rates and the contribution of facilities opened in
the last 12 months.
Central Europe thus grew at a sustained rate of +8.9%, of
which +5.3% was organic, benefiting in particular from favorable
price changes in Germany and dynamic activity in Switzerland.
The Group's activities in Eastern Europe grew by +11.9%,
mainly organically (+10.1%), benefiting from the increase in the
number of facilities opened in various countries in the region.
Lastly, growth in activity was sustained in Spain thanks to an
increase in occupancy rates, while the rest of the Iberian
Peninsula and Latam region benefited from the inclusion of
Brazil Senior Living Group within the scope of consolidation as of
1 January 2022. In total, this geographical area posted growth of
+45%, of which +17.7% was organic.
For the first nine months of the year, consolidated
revenue amounted to € 3,475.8 million, an increase of 9.3%, of
which 5.5% was organic. All geographical areas showed good organic
growth momentum, resulting from several factors:
- in France Benelux UK Ireland, higher
occupancy rates than their average level in 2021 despite the impact
of the crisis in France; - an average level of activity that is
increasing in all activities and geographical areas; - the ramp-up
of facilities opened in previous quarters. At the end of September
2022, the Group had thus continued its development with the opening
of around 2,000 beds, corresponding to new facilities and
extensions.
Financial agenda: presentation of the
transformation plan
The presentation of ORPEA's transformation plan by its new
management team will take place on the morning of Tuesday 15
November 2022. Details of how to attend will be communicated
separately.
Background information on the financing
of the Group
In a highly inflationary economic environment that has impacted
financial results, and in the context of the strategic and
financial review conducted by the new management team, the company
reminds that a conciliation procedure was opened on 25 October with
the President of the Nanterre specialized Commercial Court to
enable future discussions with ORPEA SA's financial creditors to
take place within a stable and legally secure framework. The
objective of this procedure is to reach amicable solutions under
the aegis of the appointed conciliator, Maître Hélène Bourbouloux
(FHB), in order to achieve a sustainable financial structure by
drastically reducing its debt and securing the liquidity necessary
to continue its activity.
These discussions are made necessary by the impossibility for
ORPEA SA of implementing, in the current economic environment and,
the asset disposal programme in the proportions and timeframes
originally contemplated in the financing plan agreed with the
Group’s main banking partners in May this year.
At this stage, the solutions considered include the conversion
into equity of all of ORPEA SA's unsecured debt (which represented
approximately €4 billion as at 31 October 2022), amendment of the
"R1" and "R2" financial covenants contained in many of the Group’s
financing agreements not impacted by the conversion of debt into
equity, and certain modifications to existing secured debt to
facilitate the necessary injection of new financing in the form of
secured debt and capital increase.
The first meeting with ORPEA SA's unsecured debt holders will be
held on 15 November under the aegis of Maître Hélène Bourbouloux.
It is reminded that only relevant financial creditors will be
entitled to participate.
At the same time, the Group has continued to implement the
Financing Agreement announced on 13 June 2022. This financing,
amounting €1.729 billion spread over several loans (A1, A2, A3, A4
and B) as mentioned in the recent financial publications2, is to be
made available gradually until 31 December 2022, subject to the
fulfilment of conditions precedent. It is completed by an optional
refinancing line of a maximum amount of €1.5 billion (C1 and C2
loans), intended to refinance any existing financing (excluding any
bond financing, Euro PP and Schuldschein) of the ORPEA Group that
is not secured. The situation of the drawings on the various credit
lines as at 8 November 2022 is summarised in the table below, with
a reminder of the situation detailed in the press release of 28
September 2022:
It should also be noted that after taking into account a
drawdown of approximately €462 million on the C Loan, which is
expected to be irrevocably drawn on 16 November 2022, the amount of
financing available under this facility will be approximately €242
million.
At 30 September 2022, consolidated gross debt was €9,527m, while
cash stood at €854m (€831m as of 2 November 2022).
The maturity schedule of the gross financial debt as at 1
November 2022, pro forma of the drawings made under the Financing
Agreement, is shown below:
About ORPEA ORPEA is a leading global player, expert in
the care of all types of frailty. The Group operates in 22
countries and covers three core businesses: care for the elderly
(nursing homes, assisted living, home care), post-acute and
rehabilitation care and mental health care (specialized clinics).
It has more than 71,000 employees and welcomes more than 255,000
patients and residents each year.
https://www.orpea-group.com/
ORPEA is listed on Euronext Paris (ISIN: FR0000184798) and is a
member of the SBF 120, STOXX 600 Europe, MSCI Small Cap Europe and
CAC Mid 60 indices.
1 Organic growth of Group revenue reflects the following
factors: 1. The year-on-year change in the revenue of existing
facilities as a result of changes in their occupancy rates and per
diem rates; 2. The year-on-year change in the revenue of
redeveloped facilities or those where capacity has been increased
in the current or year-earlier period; 3. Revenue generated in the
current period by facilities created during the year or
year-earlier period, and the change in revenue of recently acquired
facilities by comparison with the previous equivalent period
2 Press releases dated 13 June, 28 September and 26 October
2022
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Investor Relations ORPEA Benoit Lesieur Investor
Relations Director b.lesieur@orpea.net
Toll free tel. nb. for shareholders: +33 (0) 805 480
480
Investor Relations NewCap Dusan Oresansky Tel.:
+33 (0)1 44 71 94 94 ORPEA@newcap.eu
Media Relations ORPEA Isabelle Herrier-Naufle
Media Relations Director Tel.: +33 (0)7 70 29 53 74 i.herrier-naufle@orpea.net
Image 7 Laurence Heilbronn
Tel.: +33 (0)6 89 87 61 37 lheilbronn@image7.fr
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