emeis, formerly Orpea, announced on Wednesday a downward revision of its operating income target for 2024, anticipating a less favorable recovery in France than initially forecast.
The dependency care specialist says it expects EbitdaR - a key measure of its operating profitability - to rise by 15% to 20% this year, i.e. a forecast of between 800 and 835 million euros.
By way of comparison, last November the Group had set itself an annual target of 891 million euros, while analysts were aiming for earnings in the region of 873 million euros.
For the 2023 financial year, EbitdaR has been set at 696 million euros, compared with 780 million euros in 2022.
In a press release, emeis said it had suffered from the implementation of its measures to enhance the quality of care and support, against a backdrop of high inflation, which could not be absorbed by pricing trends and the occupancy rate of its retirement homes.
In a reaction note, analysts at Invest Securities describe the 2023 results as 'generally unsurprising compared with the preliminary publication in February'.
The company - which claims to be in the midst of a 'refoundation' process - highlights the marked improvement in its extra-financial indicators, including a fall in the frequency rate of workplace accidents and a rise in the satisfaction rate to 92.4%, compared with 90.1% in 2022.
The teams at Oddo BHF commented: "Fiscal 2024 appears to be a final year of convalescence before a probable turnaround in 2025".
On the Paris Bourse, the share - which recently underwent a share consolidation - lost around 1% in the wake of this unsurprising annual publication.
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ORPEA is the European leader in global dependency care. The group operates retirement homes, follow-up care clinics, and psychiatric clinics. At the end of 2023, ORPEA had a network of 1,031 facilities (93,470 beds) located in France/Benelux/United Kingdom/Ireland (574 facilities; 45,431 beds), Central Europe (247; 24,316 beds), Eastern Europe (124; 12,764 beds), the Iberian Peninsula and Latin America (83; 10,394 beds), China (2; 154 beds) and the United Arab Emirates (1; 36 beds).
As of December 31st , 2023, the estimated value of the real estate portfolio was EUR 6.3 billion.
Net sales are distributed geographically as follows: France/Benelux/the United Kingdom/Ireland (58.4%), Central Europe (26%), Eastern Europe (9.9%), Iberian Peninsula and Latin America (5.5%) and other (0.2%).