- Organic growth up sharply in Q2 2021: +9.8%
Successful issue of a €395-million Schuldschein
- More than three times oversubscribed
Revenue growth target for 2021 confirmed at more than +7.5%
(in excess of €4,215 million)
Regulatory News:
The ORPEA Group
(Paris:ORP), a world leader in
long-term care (nursing homes, post-acute and rehabilitation
hospitals, psychiatric hospitals, and home care services), today
announces its revenue for H1 2021 (six months to 30
June).
Covid-19 management: sanitary situation
under control but constant vigilance in the face of virus
mutations
H1 2021 saw a paradigm shift
in the sanitary outlook as the global vaccination campaign made
facilities safe again, with no virus in circulation and where
social activities resumed. To date, almost 99% of the Group’s
nursing homes are Covid-free and the percentage of residents
testing positive remains well below 0.1%. With almost 90% of
residents vaccinated, the health situation is therefore currently
under control. Almost 70% of nursing home employees are now
vaccinated and the Group is pursuing its efforts to promote
vaccination through education, awareness-raising actions and
facilitate fast access to vaccination for those who still need
it.
Nevertheless, the Group
continues to be extremely vigilant, maintaining protective measures
throughout its facilities in order to provide the best protection
for patients, residents, families and employees, particularly
against the spread of virus variants.
Scientific and medical staff
remain actively involved in the vaccination process and are keeping
a close watch on variants in order to react promptly to any
developments.
In light of the recent
government announcements in France, the Group is confident in the
ability of its staff — who have demonstrated outstanding commitment
and professionalism since the start of the pandemic — to respond
appropriately. The entire Group is united and driven by the same
determination to protect the health of the most vulnerable by
effectively combating this virus.
Rapid acceleration in growth in Q2
2021
In
€m
Quarterly
Half-yearly
Q2 2021
Q2 2020
Change
H1 2021
H1 2020
Change
France Benelux
641.9
554.2
+15.8%
1,277.7
1,136.6
+12.4%
Central Europe
256.1
245.9
+4.2%
516.2
499.6
+3.3%
Eastern Europe
102.0
79.3
+28.6%
192.6
170.3
+13.1%
Iberian Peninsula and Latam
40.9
43.4
-5.9%
81.0
96.4
-16.0%
Rest of the world
0.8
0.7
n/a
1.5
1.5
n/a
Total revenue
1,041.7
923.5
+12.8%
2,069.0
1,904.4
+8.6%
Including organic growth1
+9.8%
+5.2%
Composition of the
geographical regions: France Benelux (France, Belgium, Netherlands,
Ireland), Central Europe (Germany, Italy and Switzerland), Eastern
Europe (Austria, Poland, the Czech Republic, Slovenia, Latvia,
Croatia, Russia), Iberian Peninsula and Latam (Spain, Portugal,
Brazil, Uruguay, Mexico, Colombia, Chile), Rest of the world
(China).
Momentum accelerated sharply
in Q2 2021, with revenue up +12.8% vs. Q2 2020 to €1,041.7 million.
This was largely the result of a strong acceleration in organic
growth, which reached +9.8% in Q2 vs. +2% in Q1. This solid
performance was driven by an overall increase in occupancy rates in
all geographical regions, and in particular a major acceleration in
June in nursing homes, which set a new record in number of
admissions.
In H1 2021, ORPEA posted
revenue of €2,069.0 million, an increase of +8.6%. The Group
therefore returned to organic growth close to its historic levels,
i.e. +5.2%, thanks in large part to:
- a strong momentum in new nursing home admissions across the
entire network;
- record activity level at mental health facilities, mostly due
to the psychological consequences of the various restrictions
imposed over the last 18 months;
- the solid performance of post-acute and rehabilitation
hospitals, despite activity being below normal due to the reduction
in surgical procedures during the pandemic phases;
- an offering that meets the highest standards of care and
services, supporting the Group’s policy to maintain prices.
In H1 2021, the Group also
resumed its organic development strategy, opening 1,276 new beds,
corresponding to new facilities and extensions in its four
geographical zones. This programme is fully in line with the one
announced at the beginning of the year, which forecasts the opening
of 4,055 beds over the full year, contributing to organic growth in
2022.
Issue of a €395-million
Schuldschein
As has been the case every
year for almost a decade, on 5 July 2021 ORPEA issued a
Schuldschein (a private placement governed by German law) worth
€395 million, one of the highest amounts recorded in 2021 in this
market. The operation was a huge success, with proceeds more than
three times higher than the amount originally announced.
The Group has thus taken
advantage of highly favourable market conditions on five-, six- and
seven-year maturities at attractive prices.
Sixty percent of the proceeds
from the issue will be used to finance the Group’s further
expansion and the remaining 40% to actively manage its financial
structure, with the refinancing of 2022 maturities.
For ORPEA, which is the
largest French issuer in this market, the success of this operation
— in terms of both volume and conditions — illustrates the
robustness of its expansion model, which is being recognised by a
growing base of international credit investors.
Revenue growth target confirmed for
2021: > +7.5%
As a result of the sharp rise
in occupancy rates in all geographical zones, together with the
contribution of acquisitions completed in 2020 and those announced
on 29 June 2021, the Group confidently confirms its 2021 revenue
growth target of more than +7.5%, i.e. at least €4,215
million.
Yves Le Masne, Chief Executive Officer
of ORPEA, concludes:
“ORPEA’s activity recovered at
a good pace in the first half of 2021, with a notable acceleration
in the second quarter and especially in June. As a result, in the
second quarter, the Group achieved organic growth of +9.8%, a level
not seen for almost a decade. The Group’s revenue for the first
half of the year exceeded €2 billion, equal to the annual revenue
of 2014.
While the vaccination campaign
launched at the beginning of 2021 created the conditions for
achieving such results, credit must also be given to the commitment
of our 68,000 employees who, every day, offer the highest standards
in care, services, wellbeing and living conditions within our
facilities.
Momentum in the first half was
also underpinned by an ongoing, aggressive expansion strategy
featuring a combination of new facilities and targeted
acquisitions. The six transactions recently announced, representing
more than 4,700 beds and over €200 million in future revenue, are a
clear demonstration of the ability of the Group’s teams to identify
the best opportunities to broaden ORPEA’s offering and network in
all its geographical zones.
Lastly, as announced at the
beginning of the year, the Group published its new CSR roadmap in
the first quarter with ambitious 2023 targets for its residents,
patients and families, employees, partners, the environment and
local communities. This CSR policy will continue to be developed
with even more ambitious goals, particularly those relating to the
environment."
Upcoming
press release: H1 2021 results 21 September 2021 after market
close
About ORPEA
(www.orpea-corp.com)
Founded in 1989, ORPEA is one
of the major world leaders in comprehensive long-term care, with a
network of 1,156 facilities comprising 116,514 beds (26,359 of
which are under construction) across 23 countries, which are
divided into five geographical regions:
- France Benelux: 586
facilities/49,207 beds (5,672 of which are under
construction)
- Central Europe: 268
facilities/28,419 beds (5,828 of which are under
construction)
- Eastern Europe: 142
facilities/15,255 beds (4,101 of which are under
construction)
- Iberian Peninsula/Latin
America: 158 facilities/23,108 beds (10,373 of which are under
construction)
- Rest of the world: 2
facilities/525 beds (385 of which are under
construction)
ORPEA is listed on Euronext
Paris (ISIN code: 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210720005995/en/
Investor Relations ORPEA Steve Grobet EVP Communication and Investor
Relations s.grobet@orpea.net
Benoit Lesieur Investor Relations Officer
b.lesieur@orpea.net
Investor Relations NewCap Dusan Oresansky Tel.: +33 (0)1 44 71 94 94
orpea@newcap.eu
Media Relations Image 7 Rebecca David Tel.: 06 04 74 83 69 rdavid@image7.fr
Charlotte Le Barbier Tel.: 06 78 37 27 60 clebarbier@image7.fr
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