Earnings Release • Jul 16, 2014
Earnings Release
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ORPEA, a leading European player in Long‐Term Care (nursing homes), Post‐Acute Care and Psychiatric Care, has today announced its sales for the second quarter and the first half of 2014 to 30th June.
| In €m | Quarterly | HalfYear | ||||
|---|---|---|---|---|---|---|
| Q2 2014 |
Q2 2013 | Var. | H1 2014 |
H1 2013 | Var. | |
| France | 373.2 | 331.3 | +12.6% | 733.1 | 651.6 | +12.5% |
| % of total sales | 81% | 83% | 82% | 83% | ||
| International | 89.4 | 66.7 | +34.1% | 157.6 | 130.8 | +20.4% |
| % of total sales | 19% | 17% | 18% | 17% | ||
| Belgium | 41.5 | 39.0 | 82.3 | 78.0 | ||
| Spain* | 12.2 | 12.2 | 24.5 | 24.8 | ||
| Italy | 10.3 | 9.8 | 20.0 | 18.8 | ||
| Switzerland | 25.3 | 5.6 | 30.8 | 9.3 | ||
| Total sales |
462.6 | 398.0 | +16.2% | 890.6 | 782.5 | +13.8% |
| growth1 Organic |
+5.8% | +6.3% |
* For information, 3 facilities were closed in Spain.
Senevita in Switzerland has been consolidated as of 1 April 2014 and Silver Care in Germany will be consolidated as of 1 July 2014.
1/3 1 Organic growth reflects the following factors: 1. the growth in sales (in period n vs. period n‐1) of existing facilities as a result of changes in their occupancy rates and daily rates, 2. the growth in sales (in period n vs. period n‐1) of restructured facilities or those with capacity increased during period n or n‐1, and 3. sales generated in period n by facilities set up in period n or n‐1. Organic growth includes the improvement in sales recorded at recently‐acquired facilities by comparison with the previous equivalent period.
Yves Le Masne, ORPEA's CEO, made the following comments: "Revenue growth picked up momentum in the second quarter, rising to 16.2% versus 11.3% in the first quarter. Growth was driven by international expansion and particularly the consolidation of Swiss group Senevita.
New openings also continued apace in the second quarter, with six new facilities and extensions adding 755 beds, including 60% in the international markets (Belgium and Switzerland).
In the first half, therefore, ORPEA reported revenue of €890.6 million, a sharp yearonyear increase of 13.8% driven by an effective combination of:
In the second half, international momentum will accelerate further with the consolidation of Silver Care in Germany and continued targeted, valuecreating developments in Europe.
After this excellent first half, ORPEA is confidently confirming the target of 20% revenue growth in 2014 to €1,930 million, coupled with robust margins and wellcontrolled debt levels."
As expected, on 1 July 2014, ORPEA finalised the acquisition of the Silver Care group in Germany from private equity company Chequers Capital. The acquisition was paid entirely in cash and will be accretive in terms of earnings per share as of 2014.
Through Silver Care, ORPEA has become a first‐class operator in Germany with a network of almost 6,000 beds and a solid reputation.
It gives ORPEA a ready‐made platform for development, well placed to capitalise on the many highly attractive new opportunities in Germany:
ORPEA will provide Silver Care with its real estate expertise to speed up its value‐creating developments.
In line with schedule, ORPEA has taken delivery of the building for its 180‐bed nursing home in Nanjing. Fitting‐out and decoration work has begun under ORPEA's supervision and the facility is expected to open in the first half of 2015.
Meanwhile, preparatory work continues on recruiting and training the local teams and implementing a highly specific marketing plan.
On 23 June 2014, 12 years after its IPO on the stock market (2002 revenue of €156 million and market capitalisation of €214 million), ORPEA joined the STOXX Europe 600 index. This index comprises the 600 main European listed companies in 18 European countries (euro zone and non‐euro zone) and the selection criteria include market capitalisation (€2,760 million) and liquidity (about €5.1 million in daily trading).
The STOXX Europe 600 is a European benchmark for international fund managers. It will give ORPEA a higher profile among institutional investors and will make it eligible for various large international funds.
ORPEA therefore continues to diversify and internationalise its ownership structure among powerful, long‐term investors.
Listed on Euronext Paris since April 2002 and a member of the Deferred Settlement Service, ORPEA is a European leader in integrated Long‐Term Care and Post‐Acute Care. The Group had a unique network of 521 healthcare facilities, with 51,259 beds (42,630 of them operational), including:
Listed in Euronext Paris Compartment A, a Euronext Group market Member of the CAC Mid 60, MSCI Small Cap Europe and SBF 120 indices ‐ Member of the SRD ISIN: FR0000184798‐ Reuters: ORP.PA ‐ Bloomberg: ORP FP
ORPEA
Yves Le Masne Steve Grobet CEO Investor Relations Tel.: +33 (0)1 47 75 74 66 [email protected]
NewCap. Dusan Oresansky / Emmanuel Huynh Tel.: +33 (0)1 44 71 94 94 [email protected]
NewCap. Dusan Oresansky / Nicolas Merigeau Tel.: +33 (0)1 44 71 94 94 [email protected]
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