6% growth in the first nine months,
reflecting the operational resilience of the Group’s
networks across Europe
Regulatory News:
Korian (Paris:KORI), the leading European care services group
for elderly and fragile people, has announced its revenue for the
third quarter and first nine months of 2020.
Third-quarter revenue up 5.6% to €961.1 million, including
organic growth of 1.0%
- In line with guidance announced on 1 October 2020 (between €945
million and €965 million)
- Average occupancy rate up 2 points in Nursing Homes compared to
the low point (-5points) observed mid- June 2020
Revenue for the first nine months of 2020 up 6.0% to €2,837.6
million, including organic growth of 1.0%
- Operational resilience during the period despite lockdown
measures and limitations on business activities affecting 80% of
facilities between March and June 2020
- Good contribution from the various acquisitions carried out in
2019 (20) and 2020 (13)
Acquisition of Inicea and launch of a rights issue to raise
around €400 million
- Creation of France’s third-largest player in mental health
- Capital increase to fund the acquisition and the Group’s future
growth
Recap of the Group’s 2020 forecasts and medium-term
guidance
- Revenue growth of over 5%
- EBITDA margin of at least 13.2% excluding the effect of IFRS
16 (23.0% including IFRS 16)1 and excluding Covid-19 one-off
costs
- Medium-term guidance (2022)
- Revenue of over €4.5 billion
- EBITDA margin of 15.5% excluding the effect of IFRS 16 (24.7%
including IFRS 16 with around €80 million of residual lease
expenses)
Revenue for the third quarter and first nine months of
2020
In the third quarter of 2020, the Group generated revenue
of €961.1 million, up 5.6% year-on-year and representing organic
growth2 of 1.0%.
In the third quarter, activity level was supported by the
rebound in healthcare activities in France and Italy after measures
to reduce activity imposed by the relevant authorities in both
countries were lifted, and by the increase in occupancy rates in
medico-social facilities following the gradual increase in
admissions in the Group’s various countries from June, with an
average occupancy rate rising 2 points after falling by as much as
5 points mid-June.
Overall, in the first nine months of the year, the
Group’s revenue totalled €2,837.6 million, up 6.0% year-on-year,
with organic growth of 1% (+2.2% excluding Italy).
The Group’s various healthcare and medico-social networks are
therefore proving highly resilient to the unprecedented situation
caused by the pandemic. This has been made possible by the
outstanding commitment shown by all staff members to maintaining
continuity of care and services, and to continuing to care for
residents and patients in each facility.
Firm activity levels also reflect the impact of the various
modernisation plans adopted in the Group’s networks and its
successful business diversification with the development of
“outside the walls”, digital and home-care services in recent
years.
In the first nine months of 2020, the network added 4,176
additional beds, taking the total to 86,8513. At the same time, the
Group is continuing to increase its outpatient capacity in France
and Italy, as well as rolling out its home-care activities in
France with a network of 150 Petits-fils agencies as opposed to 50
at the start of 2019.
Acquisition of Inicea and launch of a rights issue to raise
around €400 million
On 1 October 2020, Korian announced that it had entered into
exclusive negotiations for the acquisition of Inicea, the
third-largest private psychiatry player in France, with Antin
Infrastructure Partners, an independent private equity firm focused
on infrastructure investments, for a total consideration of €360
million including €140 million of real estate.
The transaction was unanimously approved by Korian’s Board of
Directors. It remains subject to customary conditions precedent4.
The transaction is expected to complete in the fourth quarter of
2020.
At the same time, the Group has launched a rights issue5, aiming
to raise around €400 million to fund the acquisition and the
Group’s future growth.
Outlook
The Group reiterates the 2020 forecasts and 2022 guidance
announced in its press release of 1 October 2020.
In spite of the significant uncertainty linked to the pandemic,
the Group expects growth in excess of 5% in 2020.
It also expects full-year EBITDA margin of at least 13.2%
excluding the effect of IFRS 16 and Covid-19 one-off costs (12.1%
including Covid-19 one-off costs), equivalent to around 23.0%
including the effect of IFRS 16 (22.1% including Covid-19 one-off
costs).
In the medium term, as a result of the various projects the
Group has undertaken, regarding medicalising and diversifying the
services it offers to meet the growing needs of elderly and fragile
people, it is targeting total revenue of over €4.5 billion by 2022.
The EBITDA margin target is 15.5% excluding the impact of IFRS 16
in 2022 (around 24.7 % including IFRS 16 with around €80 million of
residual lease expenses) and the Group expects to keep its
financial leverage ratio below 3.5x.
Important information
This press release includes “forward-looking statements”. All
statements other than statements of historical facts included in
this press release, including, without limitation, those regarding
Korian’s financial position, business strategy, plans and
objectives of management for future operations, are forward-looking
statements. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of Korian, or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements are
based on numerous assumptions regarding Korian’s present and future
business strategies and the environment in which Korian will
operate in the future. Additional factors could cause actual
results, performance or achievements to differ materially.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of
ordinary shares in any state or jurisdiction in which such an
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction.
The distribution of this document may, in certain jurisdictions,
be restricted by local legislations. Persons into whose possession
this document comes are required to inform themselves about and to
observe any such potential local restrictions.
This press release is not an advertisement or a prospectus
within the meaning of Regulation (EU) 2017/1129 of the European
Parliament and of the Council of 14 June 2017.
This press release does not constitute or form part of any offer
of securities for sale or a solicitation of an offer to purchase or
to subscribe securities in the United States. The securities
referred to herein have not been and will not be registered under
the U.S. Securities Act of 1933 as amended (the “Securities Act”)
or any regulation relating to securities applicable in any state or
any other jurisdiction in the United States, and may not be offered
or sold in the United States absent registration under the
Securities Act or pursuant to an exemption from such registration.
Korian does not intend to register all or any portion of the
Securities in the United States under the Securities Act or to
conduct a public offering of the Securities in the United
States.
Next publication
24 February 2021: 2020 annual results (after
the market close)
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
Tables
Third-quarter revenue
€m
Revenue by country
Reported growth
Organic growth
Country
Q3 2020
Q3 2019
Variation %
France*
455.0
442.2
2.9%
-0.2%
Germany
260.3
243.2
7.0%
4.3%
Benelux**
142.4
133.1
7.0%
2.0%
Italy
103.4
91.9
12.5%
-3.2%
TOTAL
961.1
910.3
5.6%
1.0%
* Including Spain €m 8.4 on Q3 2020 vs €m
8.2 on Q3 2019
** Including Belgium €m 127,6 and
Netherlands €m14.8 on Q3 2020, vs Belgium €m 126.2 and Netherlands
€m 6.9 on Q3 2019
Revenue for the first nine
months
€m
Revenue by country
Reported growth
Organic growth
Country
9-m 2020
9-m 2019
Variation %
France*
1 372.1
1 307.0
5.0%
1.1%
Germany
757.1
716.2
5.7%
3.8%
Benelux**
426.0
381.3
11.7%
4.4%
Italy
282.4
273.1
3.4%
-11.7%
TOTAL
2 837.6
2 677.6
6.0%
1.0%
* Including Spain €m 25.3 on 9 months 2020
vs €m 16.3 on 9 months 2019
** Including Belgium €m 386.9 and
Netherlands €m 39.1 on 9 months 2020 vs Belgium €m 374.4 and
Netherlands €m 6.9 on 9 months 2019
1 12.1% excluding IFRS 16 and including Covid-19 one-off costs,
or 22.1% including IFRS 16
2 Organic revenue growth reflects: a) the year-on-year change in
revenue from existing facilities; b) revenue generated in the
current period by facilities established in the current or
year-earlier period; c) the year-on-year change in revenue at
redeveloped facilities or those where capacity has been increased
in the current or year-earlier period; d) the year-on-year change
in revenue at recently acquired facilities
3 Nursing homes, specialist clinics and alternative housing
4Including obtaining the necessary regulatory and antitrust
approvals
5 See press releases of 1 and 8 October 2020
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201018005069/en/
INVESTORS Sarah Mingham VP Investor Relations and
Financing sarah.mingham@korian.com Tél. : +33 (0)1 55 37 53 55
Carole Alexandre Deputy Head of Investor Relations
carole.alexandre@korian.com Tél. : +33 (0)7 64 65 22 44
MEDIA Jean-Marc Plantade VP Press Relations
jean-marc.plantade@korian.fr Tél. : +33 (0)7 62 90 32 58
Cyrille Lachèvre Deputy Head of Press relations
cyrille.lachevre@korian.fr Tél. : +33 (0)7 61 53 54 86
Marjorie Castoriadis Media Relations Manager
marjorie.castoriadis@korian.fr Tél. : +33 (0)7 63 59 88 81