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Korian — Earnings Release 2023
Apr 25, 2023
1465_10-q_2023-04-25_64d02aec-14fd-44bc-b566-269afb8c9121.pdf
Earnings Release
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Q1 2023 Revenue
Q1 revenues reaching €1.2 billion with a dynamic organic growth of 8.8%, in line with expectations
Paris, 25 th April 2023 – Korian, the leading European care and support services group for fragile people, today announces its 1 st quarter revenue for 2023.
- +11.8% of reported growth, with revenue of €1,218.2m in the first quarter of 2023, driven by a strong organic growth of 8.8%:
- o Increase in occupancy rate in Long-term care activity (+1.7 pt since Q1 2022)
- o A high activity level in Healthcare, benefitting from increased ambulatory activity
- o Greenfield ramp up, notably in the Netherlands and across Community Care
- o Significant increase in tariffs
- Extension of our healthcare footprint and services in Spain and Italy
- o Acquisition in January 2023 of Grupo 5, in the Spanish mental health sector, with c.3,000 employees, set to generate an annual revenue of c.€120m in 2023
- o Integration of medical platforms in Italy, contributing to half of growth in Italy
- Roll out of Asset smart strategy on track
- o Entry into exclusive negotiations for a real estate partnership with Covéa, Crédit Agricole Assurances, Malakoff Humanis, for a portfolio of assets with a value of c.€500m, representing a minority equity investment of c. € 130 million
- o c. € 85 million of additional real estate debt secured over the quarter
Based on the first quarter revenue, the Group confirms its 2023 guidance of more than 8% organic revenue growth, with EBITDAR and EBITDA stable in amount, and a financial leverage below 3.5x.
The Group confirms its decision to submit to its next General Meeting of 15th June 2023 its transformation into a purpose-led company, as detailed in a dedicated press release.
Q1 2023 Revenue
Korian delivered revenue of € 1,218 million in the first quarter of 2023, growing by 11.8%. Reported growth was supported by the acquisition of Grupo 5, but affected by the disposals last year notably in Germany. All regions showed dynamic organic growth:
- France revenue reached € 534.8 million, with a reported growth of 5.7% and an organic growth of 4.5%, driven by tariff adjustments and by dynamic development of Community Care activity.
- Germany achieved € 282.6 million of revenue, with 12.1% organic growth supported by tariff increase following the pass-through of higher salary costs (from September 2022). Reported growth of 4.9% was affected by disposal or closure of facilities during 2022.
- Benelux region is particularly dynamic with 18.0% of organic growth reflecting a positive trend on occupancy rates in Belgium and continued ramp-up of new facilities in the Netherlands. Total revenue was € 180.6 million, showing a total growth of 17.9%.
- Italy continued its dynamic growth with 19.0% reported growth reaching € 152.7 million of revenue reflecting recent acquisitions (notably Italian Hospital Group acquired in H1 2022), as well as a strong organic growth of 8.9% driven by full capacity of recent acquisitions and the continued development of outpatient activity.
- In Spain and the United Kingdom, revenue was up 106.9% mainly reflecting the integration in January 2023 of the mental health operator Grupo 5. Solid organic growth of 7.1% is driven by both countries occupancy recovery and ramp-up of recent facilities.
| Revenue (€m) | Variation (%) | |||
|---|---|---|---|---|
| 1st quarter | 1st quarter | Reported | Organic | |
| 2023 | 2022 | Growth | Growth | |
| France | 534.8 | 506.2 | 5.7% | 4.5% |
| Germany | 282.6 | 269.4 | 4.9% | 12.1% |
| Benelux* | 180.6 | 153.2 | 17.9% | 18.0% |
| Italy | 152.7 | 128.4 | 19.0% | 8.9% |
| Spain, United Kingdom** |
67.4 | 32.6 | 106.9% | 7.1% |
| Total | 1,218.2 | 1,089.7 | 11.8% | 8.8% |
Revenue by geography
* o/w Belgium: €150.0m in Q1 2023 vs €130.5m in Q1 2022, Netherlands: €30.6m in Q1 2023 vs €22.6m in Q1 2022
** o/w Spain: €53.6m in Q1 2023 vs €23.9m in Q1 2022, United Kingdom: €13.8m in Q1 2023 vs €8.7m in Q1 2022
Revenue by activity
| Revenue (€m) | Variation (%) | |||
|---|---|---|---|---|
| 1 st quarter |
1 st quarter |
Reported | Organic | |
| 2023 | 2022 | Growth | Growth | |
| Long-term care | 758.6 | 697.6 | 8.7% | 8.3% |
| Healthcare | 321.9 | 273.2 | 17.8% | 6.2% |
| Community Care | 137.8 | 118.9 | 15.9% | 17.7% |
| Total | 1,218.2 | 1,089.7 | 11.8% | 8.8% |
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
INVESTOR RELATIONS
Sarah Mingham VP Investor Relations & Financing [email protected] Tel: +33 (0)1 55 37 53 55
Charles Rungeard Investor Relations [email protected] Tel: +33 (0)6 86 75 29 51
MEDIA CONTACTS
Matthieu Desplats Head of Press Relations [email protected]om Tel: +33 (0)6 58 09 01 61
Julie Mary Responsible for Press Relations [email protected] Tel: +33 (0)6 59 72 50 69
Florian Bachelet Responsible for Press Relations [email protected] Tel: +33 (0)6 79 86 78 23