ORPEA: Strong H1 2019 revenue growth: +9.6% (€1,840 million)

• Continued solid organic growth of 4.7%

Appointment of Juan Pablo Escudero as CEO of Latin America

2019 guidance reiterated

• Revenue in excess of €3,700 million and strong profitability

PUTEAUX, France--(BUSINESS WIRE)-- Regulatory News:

The ORPEA Group (Paris:ORP), the 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 2019 (six months ended on 30 June).

Solid H1 2019 revenue growth: +9.6%

Consolidation dates: the disposals announced in France were deconsolidated from 1 April 2018, Dagelijks Leven in the Netherlands has been consolidated since 1 July 2018, Axion in Germany, September and Allerzorg in the Netherlands have been consolidated since 1 January 2019.

Clusters’ composition: Central Europe (Germany, Italy, Switzerland), Eastern Europe (Austria, Poland, the Czech Republic), Iberian Peninsula and Latam (Spain, Portugal, Uruguay), other countries (China).

¹Organic 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.

Momentum in the second quarter of 2019 picked up pace compared with the previous quarter, with revenue up 9.8% to €930.3 million vs Q2 2018. This strong improvement was driven by better-than-expected organic growth of 4.7%, which was solid in all regions, coupled with selective acquisitions, in particular in Germany, the Netherlands and Spain.

During the first half, ORPEA posted revenue of €1,840.2 million, an increase of 9.6%. The quality of the care and services provided, ORPEA’s prime locations and expansion strategy in major global cities supports the Group’s sustainable organic growth, which stood at 4.7% for the half year with:

– consistent occupancy rates that remain high across the network;

– the ramp-up in facilities opened over the past two years, as well as the opening of 1,000 beds in the four main clusters.

Appointment of Juan Pablo Escudero as CEO of the Latin America region

Juan Pablo Escudero has joined ORPEA as CEO of Latin America to support the Group’s active expansion strategy in this region. Since 2014, Juan Pablo Escudero has been the Real Estate Director for the Latin America region at Iron Mountain, responsible for the development in 6 countries (Chile, Peru, Argentina, Brazil, Colombia and Mexico). Iron Mountain is a U.S. company listed on the NYSE and world leader in data storage and data security. Prior to that, he managed the development and then the Construction and Real estate division of the Cencosud group, one of the leading distribution companies in Latin America.

Based in Chile, at the headquarters of the ORPEA Latin America cluster, Juan Pablo Escudero will bring with him a wealth of experience and a network of experts in development and real estate, as well as his expertise in the management of service activities with a strong social dimension.

By recruiting this seasoned international executive experience, ORPEA is strengthening its development capacity and its organisation in Latin America, where the Group already has nearly 7,000 beds secured, two thirds of which are under construction.

Yves Le Masne, Chief Executive Officer of ORPEA, commented:

“ORPEA has generated first half revenue of €1,840 million, equivalent to the full-year revenue of just five years ago.

Thanks to this strong performance, the Group can confidently reiterate its 2019 guidance of revenue in excess of €3,700 million (+8.2%), strong profitability and continued vigorous development. The Group will thus open more than 1,500 beds during the second half of the year.

In addition, the arrival of Juan Pablo Escudero will allow ORPEA Group to accelerate its development in the Latin American markets. Its positions in Chile, Brazil and Uruguay will be completed by development in new countries. ORPEA intends indeed to consolidate its leadership position in this region where long-term care needs are highly significant, with more than 700,000 beds needing to be created within the next 10 years.”

Upcoming press release: Half-year 2019 results
24 September 2019 after the market close

About ORPEA (www.orpea-corp.com)

Founded in 1989, ORPEA is one of the major world leaders in long-term care, with a network of 950 facilities comprising 96,577 beds (17,388 of which are under construction) across 14 countries, which are divided into five clusters:

- France Benelux: 484 facilities/42,625 beds (of which 4,514 are under construction)

- Central Europe: 238 facilities/25,419 beds (of which 4,389 are under construction)

- Eastern Europe: 125 facilities/12,917 beds (of which 2,817 are under construction)

- Iberian Peninsula/Latin America: 102 facilities/15,476 beds (of which 5,668 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. 

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Source: ORPEA