- Revenue: +10.8% to €1,110 million
- Solid organic growth of +5.7%
- Acceleration in facility openings with more than 1,000 new beds
over the quarter
2021 revenue growth guidance increased to +9% vs. 2020, from
+7.5% previously
- 2021 revenue > €4,275 million
- Stronger-than-expected organic growth
Regulatory News:
The ORPEA Group
(Paris:ORP), a world leader in
long-term care (nursing homes, assisted living, post-acute and
rehabilitation hospitals, mental health hospitals, home care
services), today announces its revenue for the third quarter of
2021 to 30 September and increases its 2021 revenue
guidance.
Yves Le Masne, Chief Executive Officer
of ORPEA, commented:
“ORPEA has recorded very
strong third-quarter growth, with revenue increasing by 10.8% and
solid and better-than-expected organic growth of 5.7%. This
performance is the result of excellent momentum in all geographical
regions in terms of occupancy rates in nursing homes,
rehabilitation hospitals and mental health hospitals.
As well as the general
increase in occupancy rates, this performance is also the result of
ORPEA’s operating model:
- quality: a demanding care
and services offer, meeting the expectations of
stakeholders;
- premiumisation of
facilities, notably regarding the most recent openings, with close
to 2,500 new beds since the start of the year;
- geographical diversity:
activity is up across all geographical regions, notably with
double-digit growth rates in France Benelux and Central
Europe;
- the day-to-day commitment of
all its teams.
On the back of these
achievements, ORPEA is in a position to raise its 2021 annual
revenue guidance: growth is now expected to exceed 9% with revenue
of over €4,275 million. This substantial increase of 3 percentage
points compared with the initial target announced in March 2021 is
primarily a result of the ramping up of the Group’s organic growth
throughout the year.”
Further strong growth in activity in Q3
2021
In
€m
Quarterly
Q3 2021
Q3 2020
Total change
Organic growth1
France Benelux
681.7
602.2
+13.2%
+7.9%
Central Europe
282.6
257.0
+10.0%
+1.8%
Eastern Europe
100.8
99.7
+1.0%
+2.5%
Iberian Peninsula and Latam
44.5
41.9
+6.2%
+5.8%
Other countries
0.8
0.9
NS
NS
Total revenue
1,110.4
1,001.7
+10.8%
+5.7%
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), Iberian Peninsula and Latam (Spain, Portugal, Brazil,
Uruguay, Mexico, Colombia, Chile), Other countries
(China).
Continuing the previous
quarter’s trend, Q3 2021 revenue was up strongly, increasing by
10.8% compared with Q3 2020 to €1,110.4 million. The revenue does
not include any State-paid compensation. Quarter-on-quarter,
revenue increased by almost €70 million, +6.6% compared with the
second quarter of 2021. This third quarter’s strong momentum is a
result of a combination of the Group’s two key factors of
success:
- external growth of over 5 percentage points, notably with the
contribution of Swiss nursing home group Sensato, the acquisitions
in Ireland (Brindley Healthcare, FirstCare and Belmont House) and
targeted acquisitions in various geographical regions;
- greater-than-expected organic growth of 5.7%, driven by both
the increase in occupancy rates in every region and a good price
dynamic.
As anticipated, activity is
returning to normal. All geographical regions and activities are
seeing strong growth, notably organic, as in the Iberian Peninsula
and Latam region, which recorded organic growth of 5.8% after five
quarterly decreases due to the impact of the Covid-19
pandemic.
In the third quarter, the
number of new beds opened as a result of construction projects
accelerated with 1,060 new beds opened, versus an average of just
over 600 during the two previous quarters. The Group notably opened
a 94-bed nursing home in the Swiss canton of Bern, the first
rehabilitation clinic in the centre of Warsaw including 168 beds
and the latest technological innovations in physiotherapy, notably
in orthopaedics and neurology, as well as two facilities in Bilbao
and Girona, Spain.
Over the first 9 months of the
year, revenue was up 9.4% at €3,179.4 million, with almost 60% of
this momentum resulting from organic growth (+5.4%).
In
€m
9 months (30.09.21)
2021
2020
Total change
Organic growth
France Benelux
1,959.4
1,738.7
+12.7%
+7.9%
Central Europe
798.8
756.6
+5.6%
+0.8%
Eastern Europe
293.4
270.0
+8.7%
+7.8%
Iberian Peninsula and Latam
125.5
138.4
-9.3%
-6.8%
Other countries
2.3
2.5
NA
NA
Total revenue
3,179.4
2,906.2
+9.4%
+5.4%
This growth in activity over
the first 9 months of 2021 was the result of a number of
factors:
- the further strong pace of new nursing home admissions in June
and July;
- a solid level of activity in rehabilitation and mental health
hospitals;
- a commercial policy to maintain prices, a corollary of a
Quality approach that is fully integrated within ORPEA’s
development model;
- the upscaling, initiated in recent years, of facilities and
openings in the best locations;
- the opening of 2,336 new beds, corresponding to new facilities
and extensions across its four geographical regions. This programme
is in line with the one announced at the start of the year that
forecast the opening of 4,055 beds over the year as a whole.
ORPEA: a partner of the Sommet de
l’Inclusion Economique
Within the framework of its
CSR policy, ORPEA is a partner of the first Sommet de l’Inclusion
Economique (social inclusion summit) organised by the Mozaïk
Foundation at the Ministry of the Economy, Finance and the
Recovery, under the distinguished patronage of Minister of the
Economy, Finance and the Recovery Bruno Le Maire and in the
presence of numerous other Ministers and more than 50 companies and
institutions already mobilised.
Diversity, Integration and
Inclusion are issues that the Group promotes on a daily basis, in
its hiring policy but also its HR development policy, and that
ORPEA strives to make a reality in every region in which it
operates by being an inclusive and responsible economic
player.
Indeed, ORPEA is committed
to:
- developing gender equality at work (65% of positions of
responsibility within the Group are held by women);
- promoting the integration of young people in the workplace
(10% of employees are under 25) whilst keeping senior staff in work
in order to ensure the transfer of skills and knowledge (19% of
employees are over 55);
- fostering internships and apprenticeships (8,500 people were
thus welcomed into the Group in 2020);
- supporting, notably via the ORPEA Foundation, charity
associations that work for equal opportunities in the workplace or
professional insertion (Rêv’Elles, Nos quartiers ont du talent and
La Cravate solidaire, amongst others);
- encouraging the integration and retention of disabled
staff.
2021 revenue guidance raised to over
€4,275 million (+9%)
In view of these excellent
third-quarter performances and the continuing strong momentum seen
in October 2021, the Group is raising its 2021 revenue growth
target to at least +9.0%, versus +7.5% previously. ORPEA is now
expecting 2021 annual revenue to exceed €4,275 million. This
increase primarily reflects the stronger-than-expected rise in
organic growth. ORPEA is also reaffirming its target of an
improvement in the EBITDAR margin in the second half of
2021.
Next press
release: Full-year 2021 revenue 8 February 2022 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/20211103005912/en/
Investor Relations ORPEA
Steve Grobet
EVP Communication and Investor
Relations s.grobet@orpea.net
Benoit Lesieur Investor Relations Director
b.lesieur@orpea.net
Investor Relations NewCap
Dusan Oresansky
Tel.: +33 (0)1 44 71 94 94
orpea@newcap.eu
Media Relations Image 7
Laurence Heilbronn
Tel.: +33 (0)6 89 87 61 37
lheibronn@image7.fr
Charlotte Le Barbier Tel.: +33 (0)6 78 37 27 60
clebarbier@image7.fr
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