Clariane SE (STU:KO2) (Q2 2024) Earnings Call Highlights: Strong Revenue Growth Amid Strategic ...

In This Article:

  • Revenue Growth: 6.8% organic increase in the first half of 2024.

  • EBITDA Growth: 3.5% increase excluding disposals; 7.5% increase post IFRS 16.

  • EBITDA Margin: 11% post IFRS 16, an increase of 75 basis points.

  • Net Profit Group Share: EUR -28 million, including loss on disposal of serviced residence business in France.

  • Operating Free Cash Flow: EUR 74 million, up from EUR 45 million in the first half of 2023.

  • Net Debt Reduction: Decreased by EUR 500 million.

  • Financial Leverage Ratio: Improved by 50 basis points to 3.6 times.

  • Consolidated Revenue: EUR 2.6 billion, representing a reported growth of 6.1%.

  • Occupancy Rate: Increased to 90.5% at the end of June 2024, up 220 basis points from June 2023.

  • Net Loss from Continuing Operations: EUR -3 million in the first half of 2024.

  • Net Debt: EUR 3.7 billion at the end of June 2024, down EUR 100 million from end 2023.

  • Loan to Value (LTV): 63% at the end of June 2024.

Release Date: August 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Clariane SE (STU:KO2) reported a dynamic revenue growth of 6.8% in organic terms for the first half of 2024, supported by all businesses and regions.

  • EBITDA post IFRS 16 increased by 7.5%, reflecting a solid operational performance.

  • The company made significant progress in reducing its net debt by EUR 500 million, improving the financial leverage ratio from 4.8 times to 3.6 times.

  • Clariane SE achieved the top employer Europe certification, becoming the first care company to receive such recognition.

  • The company secured more than 40% of the gross proceeds expected from its EUR 1 billion asset disposal program, indicating progress in its strategic roadmap.

Negative Points

  • Net profit group share was a loss of EUR 28 million, including a loss on the disposal of the serviced residence business in France.

  • The group result from continuing operations was a loss of EUR 3 million, close to breakeven.

  • EBITDA margin, excluding real estate development activities, showed a reduction due to decreased contributions from these activities.

  • The company faced a EUR 17 million increase in amortization and a EUR 33 million increase in net financial expenses, impacting profitability.

  • The occupancy rate improvement in long-term care was offset by regulatory changes affecting medical care in France.

Q & A Highlights

Q: What is the status of Clariane SE's M&A program to reach the EUR1 billion target? A: Sophie Boissard, CEO, explained that Clariane SE has completed three transactions in the first half of the year, including the sale of their UK platform and a PropCo asset in the Netherlands. They are actively working on several scenarios to secure the remaining 60% of the program to reach the EUR1 billion target by the end of 2025.