By Andrea Figueras
Shares in Orpea fell after the company said that it estimates a delay of about one year to the turnaround of its operating performance.
At 0914 GMT on Monday shares were down 3.5% at EUR1.01, having fallen earlier to EUR0.98.
The French residential care company now expects to achieve the earnings before interest, taxes, depreciation, amortisation, and restructuring target of 1.2 billion euros ($1.29 billion) in 2026, instead of 2025 as it had anticipated. It also forecasts a margin of 19% down from 20% due to the higher ratio of personnel costs to revenue, it said.
In October, the company adjusted its projections for the current year on the back of high inflation and price adjustments, it said.
For 2023, it estimates Ebitdar to come out at around EUR710 million, at the lower end of its range of EUR705 million and EUR750 million.
The company said that it expects the launch of the first of the three capital increases to take place in the coming days, subject to approval.
“By 2025-26, the group’s financing capacity should have been restored, which should enable it to refinance the remainder of the loans put in place in June 2022 with its main banking partners and secure its viability and long-term future,” the company said.
Orpea also posted its results for the third quarter, with revenue increasing 10% organically to EUR1.3 billion due to an increase in the average occupancy rate and price increases, it said.
Write to Andrea Figueras at andrea.figueras@wsj.com
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