Solid 11.3% Revenue Growth for emeis in First-quarter 2024

Regulatory News:

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ORPEA (Paris:ORP):

Consolidated revenue for Q1 2024 reached 1,374 million euros, up 11.3%. The high level of organic growth (9.6%) was driven by a 2.1-point increase in the average occupancy rate, sustained effect of price increases, and the positive impact of the contribution from the opening of new facilities.

Solid growth across all the Group's geographies:

Organic growth in Group revenue reflects the following factors: 1. The year-on-year change in revenue of existing facilities as a result of changes in their occupancy and per diem rates; 2. The year-on-year change in revenue of refurbished facilities or facilities where capacity was increased in the current or previous year; 3. The year-on-year change in revenue generated in the current period by facilities created, and 4. the change in revenue of recently acquired facilities in comparison with the previous equivalent period.

Sharp rise in occupancy rate, driven by international operations:

In accordance with IAS 1 “Presentation of financial statements” and IFRS 8 “Operating segments”, the Company now presents its financial statements according to a new geographical breakdown reflecting changes in its internal organization:

- France;

- Southern Europe and Latam: Spain, Italy, Portugal and Latin America;

- Northern Europe: Germany, Netherlands, Belgium and Luxembourg;

- Eastern Europe: Austria, Switzerland, Czech Republic, Slovenia and Croatia;

- Other geographies: Ireland, Poland, United Kingdom, China and United Arab Emirates.

1- Overview of operations in first-quarter 2024

All geographic regions reported dynamic growth in the first quarter of 2024, driven by a sustained price and care allowances effect (approx. 5.8%), reinforced internationally by a strong recovery in occupancy rates and the opening of new facilities.

The above-mentioned price effect is mainly due to tariff increases, particularly outside France, in an inflationary environment that has impacted the main operating expense line items since 2022.

The number of facilities (nursing homes + clinics + assisted living facilities) in operation stood at 1,040 at the end of the first quarter 2024. This compares with 1,003 facilities at the end of the first quarter 2023, the increase resulting from the inclusion in the scope of consolidation of 25 facilities (mainly in Belgium and the Netherlands in the second quarter of 2023) and the net balance of new facilities opened (mainly smaller facilities in the Netherlands).