Dynamic revenue growth in Q1 2021: +4.7%
(€1,027.3 m) Organic growth: +1.0% (+2.0 % on an
equal-nb-of-days basis)
Revenue growth target for 2021 reiterated :
> +6%
Regulatory News:
The ORPEA Group (Paris:ORP), a world leader in long-term care
(nursing homes, post-acute and rehabilitation hospitals,
psychiatric hospitals, and homecare services), today announces its
revenue for Q1 2021, (three months ended on 31 March).
Yves Le Masne, Chief Executive Officer
of ORPEA, commented:
“Our nursing homes today are providing a secure sanitary
environment where social interactions have resumed due to the
successful roll-out of the Covid-19 vaccination campaign, even if
the situation is still managed with a high degree of vigilance.
Thanks to this major change from the year 2020 and to the
quality of the ORPEA facilities, Q1 revenue was up nearly 5%,
including 1% in organic growth, even 2 % on an equal-number-of-days
basis, particularly driven by the general recovery of occupancy
rates in March. This performance is all the more remarkable because
the 1st quarter of 2020 was one of the most dynamic in ORPEA’s
history.
As a result, the Group can confidently restate its target of at
least 6% growth in revenue in 2021.
ORPEA has everything it needs to emerge from this crisis
stronger and is therefore actively pursuing growth, both through
new constructions and through targeted acquisitions that meet its
strict financial and quality criteria."
Covid-19 management: proven success of
the vaccination campaign and resumption of social
interactions
The success of the vaccination campaign has been further
confirmed in recent weeks: to date, the vaccination rate is 85% for
residents and 60% for employees in the Group’s nursing homes. As a
result, there has been further significant improvement of sanitary
conditions within facilities in all countries. More than 95% of the
facilities now have no cases of Covid-19, and the rate of residents
tested positive for Covid-19 is 0.2% at 3 May 2021, most of whom
are asymptomatic.
Thus, vaccination was a determining factor in securing the
facilities from a sanitary point of view, allowing each facility,
as soon as sanitary conditions are favourable, to again become a
friendly and warm space where social interactions regained their
importance: meals in the restaurant, events, entertainment and
outside trips, visits with friends and family in bedrooms…. Of
course, all the protective measures and testing procedures remain
in place and a bespoke solution is provided to each facility if the
virus is potentially circulating.
Solid Q1 2021 revenue growth:
+4.7%
In €m
Q1 2021
Q1 2020
Change
France Benelux
635.7
582.3
+9.2%
Central Europe
260.1
253.7
+2.5%
Eastern Europe
90.7
91.1
-0.4%
Iberian Peninsula and Latam
40.1
53.0
-24.3%
Rest of the world
0.7
0.8
-12.5%
Total revenue
1,027.3
980.9
+4.7%
Including organic growth1
+1.0%
Consolidation dates: Clinipsy in
France as from 15 July 2020, Sinoué in France as from 1 April
2020.
Composition of the geographical
zones: France Benelux (France, Belgium, Netherlands, Ireland),
Central Europe (Germany, Italy and Switzerland), Eastern Europe
(Austria, Poland, the Czech Republic, Slovenia, Latvia, Croatia,
Russia), Iberian Peninsula and Latam (Spain, Portugal, Brazil,
Uruguay, Mexico, Colombia, Chile), Rest of the world (China).
Revenue for Q1 2021 recorded solid growth of +4.7% to €1,027.3
million. This was due to the contribution from acquisitions,
especially in France, and organic growth of +1.0%. On an
equal-number-of-days basis, organic growth stands at +2.0 % (2020
was a leap year). This performance is even stronger when
considering the elevated basis for comparison resulting from the
very high levels of activity in January and February 2020,
pre-pandemic. In addition, since March 2021, recovery of occupancy
rates has accelerated due to the effect of the vaccine campaign and
a sustained pace of new admissions. This increase is fairly uniform
across all geographical zones.
ORPEA benefits from a particularly favourable dynamic in all its
geographical regions, thanks to:
- well-managed sanitary conditions within the
Group’s nursing homes (fewer than 0.2% positive cases); - a
specialised offer centred on the quality and safety of care; -
modern buildings and equipment, located in city centres.
Over Q1 2021, the Group opened more than 500 beds in five new
buildings and extensions, in line with its 2021 schedule.
The France Benelux geographical zone, which posted
revenue growth of +9.2%, benefits from the integration of Sinoué
and Clinipsy and an increase in occupancy rates.
In the Central Europe geographical zone, revenue is up
+2.5%, driven by strong trend in the recovery of admissions.
In Eastern Europe, business is generally stable.
Revenue in the Iberian Peninsula and Latam geographical
zone is down -24.3% under the impact of the first wave of the
pandemic, which resulted in a sharper decline in occupancy rates in
Spain, where more than 60% of the facilities are located in
Madrid.
Based on this solid Q1 2021 performance, the Group can
confidently restate its target of at least 6% growth in revenue in
2021.
Next press release: H1 2021 revenue 20 July
2021 after market close
About ORPEA (www.orpea-corp.com)
Founded in 1989, ORPEA is one of the major world leaders in
long-term care, with a network of 1,114 facilities comprising
111,801 beds (25,403 of which are under construction) across 23
countries, which are divided into five geographical regions:
- France Benelux: 572 facilities/47,906 beds
(of which 5,366 are under construction) - Central Europe: 261
facilities/27,976 beds (of which 5,828 are under construction) -
Eastern Europe: 142 facilities/15,255 beds (of which 4,101 are
under construction) - Iberian Peninsula/Latin America: 137
facilities/20,139 beds (of which 9,723 are under construction) -
Rest of the world: 2 facilities/525 beds (of which 285 are under
construction)
ORPEA is listed on Euronext Paris (ISIN code: FR0000184798) and
a constituent 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/20210504006052/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 Rebecca David Tel.: +33
(0)6 04 74 83 69 rdavid@image7.fr
Charlotte Le Barbier Tel.: +33 (0)6 78 37 27 60
clebarbier@image7.fr
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