In This Article:
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Revenue Growth: 9.2% increase, 8.9% on an organic basis.
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EBITDAR Growth: 0.8% increase.
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Debt Reduction: Net debt reduced by almost 50% to EUR 4.4 billion.
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Real Estate Assets: Valued at approximately EUR 6.3 billion.
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Occupancy Rate: Increased by 4 points over two years, now above 86%.
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Financial Expenses: Reduced by 24%.
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Free Cash Flow Improvement: Improved by EUR 111 million, though still negative.
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Real Estate Disposals: EUR 451 million since mid-2022, with an average capitalization rate of 5.65%.
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Average Cost of Debt: 5.44%.
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Net Income: Improved by EUR 114 million, but remains negative at EUR 257 million.
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Price Effect: 5.5% increase contributing to revenue growth.
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Occupancy Ratio Effect: Contributed 1.8% to revenue growth.
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New Facilities Ramp-Up: Contributed 1.6% to revenue growth.
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Nursery Homes Revenue Growth: 11.6% increase.
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Clinics Revenue Growth: 5.1% increase.
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Development CapEx Reduction: Reduced by 53% year-on-year.
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Liquidity Position: Slightly above EUR 1 billion.
Release Date: October 04, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Emeis (WBO:ORP2) reported a revenue increase of 9.2%, outperforming the sector, driven by higher occupancy rates and favorable pricing.
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The company's debt has been significantly reduced by nearly 50% from the previous year, standing at EUR4.4 billion, supported by real estate disposals.
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Occupancy rates have improved across all markets, with a notable recovery in France, contributing to overall business growth.
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Emeis (WBO:ORP2) has implemented a new governance structure and identity, enhancing the perception of the group among residents and their families.
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The company has achieved a significant reduction in financial expenses by 24%, reflecting successful recapitalization efforts.
Negative Points
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EBITDAR growth was modest at 0.8%, impacted by increased personnel costs and a time lag in sales growth.
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Free cash flow remains negative, although it has improved by EUR111 million compared to the previous year.
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The company's net income is still very negative at EUR257 million, despite improvements.
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France's operations are underperforming due to the time lag between rising operating expenses and their impact on sales.
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The average cost of debt increased to 5.44% from 4.71% in the first half of 2023, affecting financial performance.
Q & A Highlights
Q: Can you explain the discrepancy between the debt reduction and cash flow improvement? A: Laurent Guillot, CEO, explained that while cash flow has improved, it remains negative due to gradual investment debt reduction. This accounts for the difference between debt reduction and cash flow figures.