Half Year 2024 Emeis SA Earnings Call Transcript
Key Points
- Emeis (WBO:ORP2) reported a revenue increase of 9.2%, outperforming the sector, driven by higher occupancy rates and favorable pricing.
- The company's debt has been significantly reduced by nearly 50% from the previous year, standing at EUR4.4 billion, supported by real estate disposals.
- Occupancy rates have improved across all markets, with a notable recovery in France, contributing to overall business growth.
- Emeis (WBO:ORP2) has implemented a new governance structure and identity, enhancing the perception of the group among residents and their families.
- The company has achieved a significant reduction in financial expenses by 24%, reflecting successful recapitalization efforts.
- EBITDAR growth was modest at 0.8%, impacted by increased personnel costs and a time lag in sales growth.
- Free cash flow remains negative, although it has improved by EUR111 million compared to the previous year.
- The company's net income is still very negative at EUR257 million, despite improvements.
- France's operations are underperforming due to the time lag between rising operating expenses and their impact on sales.
- The average cost of debt increased to 5.44% from 4.71% in the first half of 2023, affecting financial performance.
Half year results end of June 2024. Here is Jean-Marc Boursier, our CFO. And as you will see, these results show a transition that is well underway.
Over the past 18 months, we have implemented ambitious transformation measures for the benefit of our residents and employees in order to restore a quality of care that matches our ambitions, the necessary basis to initiate a sustainable turnaround in our operating performance. To achieve this, we adopted a new governance structure as part of the restructuring of our balance sheet and a new identity, really helping to improve the perception of our group by residents and their families.
The fundamentals of our businesses are already improving, which shows that we have taken the right direction. Occupancy rates are already recovering across all markets and all Emeis businesses. Already, our ability to capture a favorable price effect seems to have been strengthened in all markets and all the group's businesses with price rises outstripping inflation and exceeding those observed among
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