Orpea is deprived of dividends

Orpea achieved a net profit of € 65.2 million in 2021 (fiscal year ending at the end of December), down 59.3%. Retirement home operator Ebit fell 6.4% to 395.7 million. Ebitdar, or Ebitda before rent, increased 11.1% to 1.07 billion, showing a margin of 24.9%. In 2021, sales were $ 4,299 million, an increase of + 9.6% (including + 5.5% internal growth).

This change specifically includes the contributions of new establishments opened in 2021 (including First Care in Ireland, Belmont and Brindley, Sensato in Switzerland) and improved levels of activity.

Net income for 2021 includes a € 83 million reserve for risks and costs associated with estimated risks from 2017 to 2021 after an administrative inspection by Orpea in France, and costs associated with write-downs48. Includes one million euros. Of asset value.

Orpea recorded overall growth dynamics in the first quarter, with sales up 9%, of which% was organic growth. In France, in difficult situations, nursing homes recorded a decline in occupancy trimesters.

The rest of the group’s activities experienced strong momentum as occupancy increased. The Iberian Peninsula and Latin American Zones benefited from being integrated into the scope of the Brazilian Senior Living Group’s integration on January 1.

In terms of outlook, the Group is confident in the dynamic growth of sales in 2022, which includes the opening of numerous new sites (with the goal of opening more than 3,000 new beds during the period) and international and French. clinic.

Operating profitability is affected by the unfavorable inflationary environment, and more specifically, the energy costs and salaries of certain countries.

The group also needs to handle the exceptional costs associated with managing the crisis and its consequences.

In this exceptional situation, the Board of Directors will not propose to pay dividends for the 2021 fiscal year to the next General Assembly.

Faced with significant financing challenges with an annual investment of around € 900 million working on the development of real estate portfolios in 2022 and 2023, a significant debt repayment schedule in 2022 (about € 850 million in the second half, 2023) ), Orpea has reached an agreement with major banking partners in principle.

The agreement addresses the current state of uncertainty that weighs heavily on the Group, as well as closed access to financial markets and a slowdown in the originally envisioned asset disposal program.

In this way, he organizes the first phase of a review of the Group’s funding strategy and secures a new funding line. This agreement is part of a friendly mediation procedure initiated by an order with the President of the Nanterre Professional Commercial Court dated April 20, 2022.

It provides for the contribution of new loans by banks through a € 1,733 million secured syndicated loan.

Finally, Orpea has set up a strategic review of its assets with the support of new general management to gradually reduce its debt.

The group plans to dispose of more than € 3 billion by the end of 2025, of which at least € 1 billion is primarily due to the nature of the property in the form of sales and leasebacks.

Source: AOF