Emeis: EbitdaR target revised downwards for 2024

(CercleFinance.com) - emeis, formerly Orpea, on Wednesday reduced its operating income target for 2024, anticipating the recovery in France to be not as good as 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 E800m to E835m.

In comparison, last November the group set itself an annual target of E891m, while analysts were expecting earnings around E873m.

2023 EbitdaR reached E696m, down from E780m 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 says that it is in the middle 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 said that FY 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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