Release Date: August 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Clariane SE (STU:KO2, Financial) reported a dynamic revenue growth of 6.8% in organic terms for the first half of 2024, supported by all businesses and regions.
- EBITDA post IFRS 16 increased by 7.5%, reflecting a solid operational performance.
- The company made significant progress in reducing its net debt by EUR 500 million, improving the financial leverage ratio from 4.8 times to 3.6 times.
- Clariane SE achieved the top employer Europe certification, becoming the first care company to receive such recognition.
- The company secured more than 40% of the gross proceeds expected from its EUR 1 billion asset disposal program, indicating progress in its strategic roadmap.
Negative Points
- Net profit group share was a loss of EUR 28 million, including a loss on the disposal of the serviced residence business in France.
- The group result from continuing operations was a loss of EUR 3 million, close to breakeven.
- EBITDA margin, excluding real estate development activities, showed a reduction due to decreased contributions from these activities.
- The company faced a EUR 17 million increase in amortization and a EUR 33 million increase in net financial expenses, impacting profitability.
- The occupancy rate improvement in long-term care was offset by regulatory changes affecting medical care in France.
Q & A Highlights
Q: What is the status of Clariane SE's M&A program to reach the EUR1 billion target?
A: Sophie Boissard, CEO, explained that Clariane SE has completed three transactions in the first half of the year, including the sale of their UK platform and a PropCo asset in the Netherlands. They are actively working on several scenarios to secure the remaining 60% of the program to reach the EUR1 billion target by the end of 2025.
Q: Can you provide more information on the newbuild program, specifically the 10,500 beds mentioned?
A: Sophie Boissard, CEO, clarified that the newbuild program has been significantly reduced to 2,700 beds to be delivered over the next three years. These are already pre-financed through real estate partnerships, mainly in France and the Netherlands.
Q: Is Clariane SE planning to ensure CapEx is self-sufficient and covered by cash flow for 2024?
A: Philippe Garin, CFO, confirmed that Clariane SE aims to achieve a 40% conversion rate by the end of the year and reduce investments to EUR200 million, allowing them to be cash positive and self-finance for 2024.
Q: What are the prospects for German pricing and recouping inflationary costs over the next 12 to 24 months?
A: Sophie Boissard, CEO, stated that they have started pricing negotiations for 2025, which include expected inflation on costs. They anticipate that repricing will cover inflation and contribute to a margin rebound, with profitability expected to return to normal levels by the end of 2025.
Q: How does Clariane SE plan to handle real estate debt maturing in the second half of the year?
A: Philippe Garin, CFO, mentioned that they have secured around EUR70 million of real estate debt and are confident in their ability to renew debt. They have plans to adjust and manage their real estate debt effectively.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
