- Q2 2020 revenue almost unchanged
Strengthening of premium psychiatry care
offering in France
- Acquisition of 9 facilities from Clinipsy
group
Rapid recovery of facilities impacted by
Covid-19 in H2 2020
Regulatory News:
The ORPEA Group (Paris:ORP), world leader in long-term care
(nursing homes, post-acute and rehabilitation hospitals,
psychiatric hospitals, and homecare services), today announces its
revenue for the first half of 2020 (six months to 30 June) and the
acquisition of 9 psychiatry facilities from Clinipsy, a key player
in mental healthcare in France.
H1 2020 revenue growth:
+3.5%
In €m
Quarterly
Half-yearly
Q2 2020
Q2 2019
Change
H1 2020
H1 2019
Change
France Benelux
554.2
552.6
+0.3%
1,136.6
1,093.2
+4.0%
Central Europe
245.9
239.7
+2.6%
499.6
473.9
+5.4%
Eastern Europe
79.0
88.7
-11.0%
170.0
175.7
-3.2%
Iberian Peninsula and LATAM
43.5
49.0
-11.3%
96.4
96.5
+0.0%
Rest of the world
0.7
0.6
n/a
1.5
1.4
n/a
Total revenue
923.2
930.7
-0.8%
1,904.1
1,840.6
+3.5%
Including organic growth1
-5.5%
-0.9%
Consolidation
dates: Sinoué in France has been consolidated since 1 April 2020;
TLC in Ireland has been consolidated since 1 January 2020; SIS
Brazil and SIS Portugal have been consolidated since 1 October
2019.
Clusters’
composition: France Benelux (France, Belgium, the Netherlands,
Ireland), Central Europe (Germany, Italy and Switzerland), Eastern
Europe (Austria, Poland, Czech Republic, Slovenia, Latvia), Iberian
Peninsula and LATAM (Spain, Portugal, Brazil, Uruguay, Mexico),
Other countries (China).
The end of the first quarter and the entire second quarter were
affected by the Covid-19 pandemic, which has had a major impact on
the global economy as a whole and on the operation of healthcare
facilities. Faced with these exceptional circumstances, and thanks
to the remarkable commitment of its 65,000 employees to the
protection of its residents and patients, ORPEA has succeeded in
limiting the impact of this crisis, with Q2 2020 revenue almost
stable compared to 2019 (-0.8%). The Group’s health facilities
(post-acute and rehabilitation hospitals and psychiatric hospitals)
were particularly hard hit in the second quarter, with total
closures in Austria, and a marked slowdown in France and Germany
due to the sudden suspension of surgery. Q2 organic growth,
excluding hospital closures in Austria, dropped 4.3%.
ORPEA managed to generate revenue growth of 3.5% over the first
half, driven by the contribution of acquisitions, particularly in
Ireland, Latin America and France, and the limited decline of 0.9%
in organic growth. The France Benelux cluster grew by 4% over the
first half, excluding the Public Health Insurance funding guarantee
to the Group’s French clinics estimated at €10m. The Central Europe
cluster also demonstrated its resilience, with revenue growth of
5.4% over the period. The decline in Eastern Europe was solely due
to the closure of post-acute and rehabilitation hospitals in
Austria. Finally, revenue for the Iberian Peninsula and the LATAM
region was in line with H1 2019, despite Madrid and Barcelona being
hit particularly hard by Covid-19.
Close monitoring of Covid-19
developments and rapid upswing in occupancy rates
All Group employees and resources remain committed to the
management of the Covid-19 pandemic, at a time when lockdown
measures are gradually being eased towards a return to normal
operating conditions. Family visits are now allowed again, subject
to compliance with barrier measures such as the wearing of masks by
visitors. Moreover, the Group has sizeable stocks of personal
protection equipment and tests.
Business across all facilities has picked up significantly since
mid-June:
– the improvement in occupancy rates at
post-acute and rehabilitation hospitals and psychiatric hospitals
has been faster than expected, as they have almost returned to
pre-Covid levels in just two months; – the momentum of new
admissions for nursing homes is also strong, and occupancy rates in
most countries are expected to return to pre-pandemic levels by the
end of 2020.
Strengthening of the mental healthcare
offering in France with the acquisition of 9
facilities
Clinipsy is a private independent group of psychiatric
hospitals, founded in 2009 by Doctors Frédéric Lefebvre and Laurent
Morasz. In 12 years, the Group has become a key player in mental
healthcare in France and boasts cutting-edge expertise in the
creation of new facilities, innovation, research and committed
public-private partnerships.
ORPEA has thus acquired 9 facilities with a total of 907 beds
and places, 50% of which have been opened recently or are scheduled
to open in the next two years. All the facilities are very recent
(5 years on average), are mainly located in large towns or cities
in the North and East of France, and in regions requiring a
strengthening of the healthcare offering.
This transaction is part of the Clinipsy Group’s repositioning
strategy that aims to refocus on specific, innovative projects.
With this in mind, Dr Morasz has chosen the ORPEA-CLINEA Group to
manage the facilities he founded with Dr Lefebvre.
With this acquisition, ORPEA will be able to consolidate its
mental healthcare network and expertise in France and benefit from
a major growth pipeline with beds and extensions to be opened. In
2019, the 9 Clinipsy facilities, which will be consolidated from 1
July 2020, generated revenue of almost €40 million.
Yves Le Masne, Chief Executive Officer
of ORPEA, commented:
“The first half, which was impacted by the Covid-19 pandemic,
was an unprecedented period. I would like to send my heartfelt
condolences to the families of those who have lost loved ones. I
would also like to thank all stakeholders for their commitment and
support: residents, patients, families, employees, suppliers,
supervisory authorities and financial partners, among others. The
Group has also decided to top up the bonus paid by the various
governments to all employees in its facilities, to thank them for
their commitment during this period.
Despite the major impact of this crisis on the global economy,
ORPEA recorded a 3.5% growth in business in H1 2020 thanks to the
exceptional resources deployed to fight the pandemic, its new
geographical cluster-based organisation, and the substantial
resilience of its business sector.
It goes without saying that our teams remain committed to
applying barrier measures and are continuing to closely monitor the
pandemic.
ORPEA is seeing a stronger-than-expected recovery in the
occupancy rates of its facilities, in particular its hospitals, and
projects a return to a normal level of activity across nearly all
its sites by the end of the year. In addition, the Group is
continuing its development with the resumption of its
constructions, as well as acquisitions including those of mental
healthcare groups Sinoué and Clinipsy, which offer strong embedded
future growth. Lastly, ORPEA is implementing its real-estate
strategy by maintaining its 50% property ownership, as planned,
with the disposal of €145 million in real estate assets to the
European real estate company Icade.
The Group therefore remains confident in its ability to balance
organic and external value-creating development with sustained
profitable growth in the years ahead to strengthen its position as
global leader in long-term care.”
Next press release: H1 2020 results 22
September 2020 after market close
About ORPEA (www.orpea-corp.comS)
Founded in 1989, ORPEA is one of the major world players in
long-term care, with a network of 1,014 facilities comprising
104,234 beds (20,932 of which are under construction) across 22
countries, which are divided into five clusters:
- France Benelux: 509 facilities/45,068 beds
(of which 4,752 are under construction) - Central Europe: 249
facilities/26,491 beds (of which 4,885 are under construction) -
Eastern Europe: 136 facilities/14,621 beds (of which 3,647 are
under construction) - Iberian Peninsula/Latin America: 119
facilities/17,914 beds (of which 7,648 are under construction) -
Rest of the world: 1 facility/140 beds
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/20200721005766/en/
Investor Relations ORPEA Steve Grobet Investor
Relations Director s.grobet@orpea.net
Hélène de Watteville Investor Relations Officer
h.dewatteville@orpea.net
Investor Relations NewCap Dusan Oresansky Tel.:
+33 (0)1 44 71 94 94 orpea@newcap.eu
Media Relations Image 7 Laurence Heilbronn Tel.:
+33 (0)1 53 70 74 64 lheilbronn@image7.fr
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