2024 guidance confirmed
Regulatory News:
Clariane (Paris:CLARI):
- Revenue increased by 6.8% in organic terms in the first half
of 2024, supported by all businesses and regions with
notably a nursing home occupancy rate at 90.5% in June 2024,
up from 88.3% in June 2023. Over the first half as a whole, the
average occupancy rate was 89.5% (excluding the United
Kingdom), compared with 87.9% in the first half of 2023.
- EBITDA, excluding IFRS 16 and disposals, rose 3.5%. As
anticipated, the margin was down only slightly due to the strong
reduction of the real estate development business. Excluding this
effect, the margin would be up by 75 basis points, reflecting the
tight grip on operating costs and the initial effects of the
recovery in Germany. EBITDA including IFRS16 is up 7,5%, on a
published basis, compared with the first half of 2023
- The Group made a net loss of €3 million from continuing
operations excluding IFRS 16, including notably the impact of
the interim financing costs put in place in anticipation of the
capital increase and disposals in the first half; net profit, Group
share excluding IFRS 16, at -€28m, includes the loss on the
disposal of the serviced residence business in France in June
2024.
- Operating free cash flow excluding IFRS 16 rose sharply to
€74 million, versus €45 million in the first half of 2023.
- The Group made good progress with its plan to strengthen its
financial position:
- Successful capital increases raising a total gross amount of
€329 million, with the rights issue being 168%
oversubscribed.
- Disposal programme well underway with around 40% of the
total amount secured during the period out of an expected total of
€1 billion to be raised by 2025.
- The financial leverage ratio improved by 50 basis points,
falling to 3.6x* versus 4.1x at 30 June 2023, and 3.8x at 31
December 2023, and the LTV was 63% versus 58% at 30 June
2023 and 61% at 31 December 2023; this transitory increase in the
LTV is due to the low level of debt in the portfolios sold (mix
effect) and due to higher capitalisation rates.
- The Group reached new milestones in terms of achieving its
ESG roadmap targets, including validation of its greenhouse
gas reduction trajectory by the SBTi.
- The Group is confirming its 2024 objectives: organic
revenue growth of over 5% and EBITDA at least stable
excluding IFRS 16 and disposals.
The main financial statements for the first half of 2024** will
be available in full on www.clariane.com.
In millions of euros –
H1 2023
reported
H1 2023
Pro forma of disposals
H1 2024
Change
Revenue
As reported
Organic
2,485
2 467
2,636
+6.1%
+6.8%
EBITDAR excluding IFRS 16
As reported
Excluding disposals
538
533
560
+4.0%
+5.1%
EBITDA excluding IFRS 16
As reported
Excluding disposals
285
280
290
+1.6%
+3.5%
EBITDA margin excl. IFRS
16
11.5%
11.4%
11.0%
EBITDA including IFRS 16
As reported
482
477
518
+7.5%
Net profit from continuing operations
excluding IFRS 16
32
29
-3
Net profit Group Share excluding IFRS
16
26
23
-28
Net profit Group Share including IFRS
16
1
1
-52
Operating free cash flow excluding IFRS
16
45
74
* As agreed with the banks that are party to the syndicated
credit facility, the financial leverage ratio at 30 June 2024
factors in the rights issue completed on 5 July 2024, the
net proceeds of which totalled €234.4 million (see section 4
“Balance sheet” below).
** The consolidated financial statements for the first half of
2024 were approved by the Board of Directors at its meeting of 5
August 2024. The consolidated financial statements were prepared in
accordance with IFRS 16. For comparability purposes, the financial
information below is presented excluding the application of IFRS
16. The limited review of the condensed consolidated interim
financial statements has been performed and the statutory auditors
are in the process of issuing an unqualified report.
Sophie Boissard, CEO of Clariane, said:
"Through the dedication of all Clariane employees, for which I
am grateful, and the relevance of our business model based on a
diversified portfolio of businesses and geographical markets,
Clariane achieved a solid performance in the first half,
particularly in Germany, where we are seeing the initial impact of
our plan to restore margins.
More than ever, we remain focused on fulfilling our mission of
caring for fragile people and on implementing our non-financial
commitments, both social and climate-related. The SBTi has
validated our greenhouse gas reduction targets and we are having
regular constructive discussions with our Mission Committee, which
published its first report on its work in April.
I am delighted that we have already been able to complete three
of the four key components of our plan to strengthen our financial
position, which we began on 14 November 2023. In particular, the
capital increases we carried out in June have bolstered our
shareholder group, with the arrival of HLD Groupe and increased
stakes for Flat Footed and Leima Valeurs, alongside our
long-standing shareholder Crédit Agricole Assurances. We are
actively working on completing our €1 billion asset disposal plan,
of which we secured 40% in the first half of 2024. This final
component of the plan will enable us to hit our 2025 debt reduction
targets.
Buoyed by our achievements and the momentum resulting from our
“At Your Side” corporate project, we are looking ahead to the
second half of 2024 with confidence and determination."
Important information
This document contains forward-looking statements that involve
risks and uncertainties, including those included or incorporated
by reference, concerning the Group's future growth and
profitability that could cause actual results to differ materially
from those indicated in the forward-looking statements. These risks
and uncertainties relate to factors that the Company cannot control
or estimate precisely, such as future market conditions. The
forward-looking statements contained in this document constitute
expectations of future events and should be regarded as such.
Actual events or results may differ from those described in this
document due to a number of risks and uncertainties described in
Chapter 2 of the 2023 Universal Registration Document filed with
the AMF on 30 April 2024 under registration number D.24-0380, as
amended (i) in section 3 of the amendment filed with the AMF on 31
May 2024 under number D. 24-0380-A01 (the "First Amendment") and
(ii) in section 2 of the amendment filed with the AMF on 12 June
2024 under number D. 24-0380- A02 (the "Second Amendment")
available on the Company's website (www.clariane.com) and that of
the AMF (www.amf-france.org). All forward-looking statements
included in this document speak only as of the date of this press
release. Clariane S.E. undertakes no obligation and assumes no
responsibility to update the information contained herein beyond
what is required by applicable regulations.
Readers are cautioned not to place undue reliance on these
forward-looking statements. Neither Clariane nor any of its
directors, officers, employees, agents, affiliates or advisors
accepts any responsibility for the reasonableness of any
assumptions or opinions expressed or for the likelihood of any
projections, prospects or performance being achieved. Any liability
for such information is expressly excluded. Nothing in this
document is, or should be construed as, a promise or representation
regarding the future. Furthermore, nothing contained in this
document is intended to be or should be construed as a forecast of
results. Clariane's past performance should not be taken as a guide
to future performance.
In this press release, and unless indicated otherwise, all
changes are stated on a year-on-year basis (2024/2023), and at
constant scope and exchange rates.
The main alternative performance indicators (APIs), such as
EBITDA, EBIT, net debt and financial leverage, are defined in the
Universal Registration Document available on the company’s website
at www.clariane.com.
1 - Financial performance in the first half of 2024: key
elements
1.1 - Group income statement
1.1.1 - Analysis of revenue on a reported basis and at
constant scope and exchange rates
The Group’s consolidated revenue in the first half of 2024
totalled €2,636 million, representing reported growth of 6.1% and
organic growth of 6.8%. That performance confirms the relevance of
the Group’s strategy and business model, which is based on a
diversified portfolio of businesses and geographical markets. At 30
June 2024, the network consisted of 1,217 facilities versus 1,222
in at 31 December 2023, representing almost 90,000 beds. Disposals
of facilities in the United Kingdom (12 facilities) and of Les
Essentielles (18 facilities) in France were almost fully offset by
adding three long-term care facilities to the portfolio in Spain
and by bringing into service 29 greenfield facilities, mainly in
France (13 new Ages & Vie facilities and one long-term care
facility), Spain (eight healthcare facilities and services), the
Netherlands (three long-term care facilities) and Belgium (three
facilities). The Group also continued its efforts to restructure
its portfolio during the period, with the closure of seven
facilities (four in Italy, two in Belgium and one in Germany). On
that basis, the Group’s 60,000 healthcare professionals cared for
around 566,000 residents and patients in the first six months of
the year.
Organic revenue growth of 6.8% resulted from the following
factors:
- Higher business volumes of 3.2%. This had a net positive impact
of €79 million (higher volume of days billed in mature networks and
additional capacity coming onstream);
- Price increases of 3.6%, with a positive impact of €92 million,
particularly in France, Germany and the Belgium/Netherlands
region.
The Long-Term Care business, which accounted for just
over 61% of the Group’s business activity in the first half of 2024
versus 62% in the first half of 2023, generated revenue of
€1,618 million, up from €1,540 million in the year-earlier period.
This represented reported growth of 5.1% despite the disposal of
Berkeley Care, which took effect on 9 April 2024, and organic
growth of 7.2%. As of 30 June 2024, the Group operated 669
specialist nursing homes, a slight decrease compared with 31
December 2023 (674 facilities), mainly due to the disposal of the
Group’s UK business, which was partly offset by the opening of new
facilities, particularly in Spain and the Netherlands.
Organic growth was driven by ongoing growth in business volumes,
as reflected by the rising occupancy rate, which averaged 89.5% in
the first half of 2024 (excluding the UK) versus 87.9% in the first
half of 2023, and by price adjustments. It should be noted that the
average occupancy rate in 30 June 2024 was 90.5% versus 88.3% as of
June 2023.
The Healthcare business generated €680 million of revenue
in the first half of 2024, around 26% of the Group total, a
reported growth of 3.3% and organic growth of 3.5%, with 2.4%coming
from higher business volumes and 1.1% from price adjustments. At 30
June, the Group operated 281 facilities and consultation centres,
up from 276 at 31 December 2023.
Business volumes in outpatient activities in France
(consultations and partial hospitalisation) rose by 12%, with more
than 292,000 outpatient care sessions during the period.
Revenue in the Community Care business, whose brands
include Petits-fils and Ages & Vie, amounted to €338 million in
the first half 2024. This represented almost 13% of the Group
total, along with reported growth of 17.8% and organic growth of
12.6%.
In the first half of 2024, almost 64,000 patients used
Clariane’s Community Care services across its 267 shared housing
facilities and home care branches.
Performance was driven by:
- Further development of the shared housing network;
- Ongoing strong growth in the home care network.
1.1.2 - EBITDAR and EBITDA
EBITDAR excluding IFRS 16 was €560 million in the first half of
2024, versus €538 million in the first half of 2023, representing
growth of 4.0% as reported and 5.1% excluding disposals.
EBITDA excluding IFRS 16 amounted to €290 million versus €285
million in the first half of 2023, a growth of 1.6% as reported and
3.5% excluding disposals. That performance was the result of
margins remaining resilient in all regions despite the impact of
cost inflation in the last 12 months. Initiatives adopted in
Germany to adjust to particularly difficult sector conditions
allowed the Group to increase its margins significantly compared
with the first half of 2023.
The increase in EBITDA excluding IFRS 16 resulted from the
positive impact of:
- Higher business levels (+€24 million);
- Higher prices (+€92 million) and a limited increase in
operating expenses (-€79 million), resulting in a net positive
price effect of €13 million.
These positive effects more than offset the negative impact
of:
- A decrease in the contribution of real-estate development
activities (-€29 million);
- Changes in scope (-€4 million) mainly related to the disposal
of the UK business.
Taking into account these effects, EBITDA margin excluding IFRS
16 was 11.0% in the first half of 2024, versus 11.4% in the same
period of 2023. Adjusted for the effects of the reduction in real
estate development activities, the margin would be up by +75 basis
points, reflecting the resilience of operating expenses and the
initial effects of the recovery in Germany.
EBITDA including IFRS16 is up 7,5% compared with the first half
of 2023.
Net profit from continuing operations excluding IFRS
16
The Group made a net loss of €3 million from continuing
operations in the first half of 2024 versus a profit of €32 million
in the first half of 2023.
The decrease was mainly due to:
- A €17 million increase in depreciation, amortisation and
provisions from €149 million in the first half of 2023 to €165
million in the first half of 2024, arising particularly from the
opening of new facilities;
- A €33 million increase in net financial expense to €96 million
in the first half of 2024 versus €64 million in the first half of
2023, due in particular to the reduced positive impact of hedging
and the cost of bridge loans arranged to ensure the Group’s
liquidity pending disposals and the capital increases completed in
July 2024.
These negative factors were partly offset by a €15 million
reduction in tax expense.
Finally, Clariane made a net loss Group share excluding IFRS
16 of €28 million versus a profit of €26 million in the first
half of 2023, taking into account additional operating losses and
capital losses on the disposal of the assisted living facilities
business, which was sold at the end of June 2024. The company
points out that these activities had been classified as assets held
for sale since 2022..
1.2 - Performance by geographical zone
1.2.1 - France
In millions of euros
H1 2023
H1 2024
Reported growth
Organic growth
Revenue
1,096
1,173
+7.0%
+5.9%
IFRS 16
267
260
-2.7%
EBITDAR margin
24.3%
22.1%
Revenue remained firm in France throughout the period,
rising by 5.9% on an organic basis.
- Organic revenue growth in the Long-Term Care segment was
5.5% over the period as a whole. That increase reflects both the
positive impact of price adjustments and higher volumes, with the
average occupancy rate continuing to rise to 88.6% during the first
half versus 86.9% in the first half of 2023 based on the network of
operational facilities. The occupancy rate was 88.9% in June 2024,
up from 86.6% in June 2023.
- The Specialty Care segment achieved organic revenue
growth of 3.6% in the first half of 2024. Each sub-segment – mental
health, medical and rehabilitation care and home care – achieved
significant growth during the period, driven by higher business
volumes in outpatient and partial hospitalisation activities. This
came in the context of the implementation of the new pricing
framework applicable in France for mental health and medical care
and rehabilitation activities (with a fixed annual allocation
representing 100% or 50% of revenue respectively).
- Finally, the Community Care segment achieved strong
growth in the first half (revenue up 35.1% on an organic basis,
adjusted for the deconsolidation of Ages&Vie’s real-estate
development activities in the second half of 2023), driven by
robust demand for services such as those offered by Ages&Vie
and Petits-fils.
This resulted in EBITDAR of €260 million in the first
half of 2024 versus €267 million in the first half of 2023, despite
the weak contribution from real-estate development activities,
mainly at Ages & Vie, which amounted to €34 million in the
first half of 2023. This effect accounted for all of the decrease
in EBITDAR margin from 24.3% in the first half of 2023 to 22.1% in
the first half of 2024. Adjusted for these real-estate development
effects, EBITDAR margin would increase by +80 basis points
reflecting the dynamism of the business and the resilience of
operating costs.
1.2.2 - Germany
In millions of euros
H1 2023
H1 2024
Reported growth
Organic growth
Revenue
573
618
+7.8%
+8.3%
IFRS 16
103
122
+18.2%
EBITDAR margin
18.0%
19.7%
Revenue in Germany rose sharply in the first half of
2024, driven by higher business volumes and the initial impact of
price increases negotiated in 2023 with local authorities. Business
growth and the strategy of increasing prices that was put in place
in 2023 and continued in 2024, combined with measures specific to
the market context seen in recent years, enabled the Group to
initiate a clear recovery in its margin in this region in the
first-half period.
Looking at individual business segments:
- The Long-Term Care segment posted organic revenue growth
of 8.8%, supported by price rises and an occupancy rate that rose
from 86.6% in the first half of 2023 to 89.3% in the first half of
2024. The occupancy rate was 90.1% in June 2024, up from 87.4% in
June 2023.
- Revenue in the Community Care segment grew by 7.4% on an
organic basis.
EBITDAR in Germany amounted to €122 million in the first
half of 2024, versus €103 million in the first half of 2023. After
particularly rapid cost inflation in 2023, negotiated price rises
combined with the Group’s efforts to adapt to the new operating
environment enabled it to resume growth in EBITDA margin in
Germany, with a 170-basis-point improvement compared with the first
half of 2023.
Buoyed by these initial positive results, the Group is
continuing to refocus its network in this country with the aim of
bringing profitability back to normal levels in 2025.
1.2.3 - Benelux
In millions of euros
H1 2023
H1 2024
Reported growth
Organic growth
Revenue
368
385
+4.8%
+7.2%
IFRS 16
79
82
+4.0%
EBITDAR margin
21.5%
21.4%
Growth remained strong in the Benelux region, with
revenue rising by 7.2% on an organic basis in the first half
of 2024.
In Belgium, revenue totalled €311 million, up 5.3% on an organic
basis. EBITDAR was €65 million, almost unchanged on a reported
basis (-1.3%) relative to the first half of 2023.
- The Long-Term Care segment posted organic growth of
5.4%, supported by an occupancy rate that rose from 89.5% in the
first half of 2023 to 91.4% in the first half of 2024, and by
regular price rises. In June 2024, the occupancy rate was 91.3%
versus 89.7% in June 2023.
- The Community Care segment – which accounts for just
over 8% of the Group’s revenue in Belgium – achieved organic growth
of 4.1%.
In the Netherlands, revenue was €75 million, up 15.9% on an
organic basis. EBITDAR amounted to €18 million, representing
reported growth of 29.6%.
The Group’s three business segments in this country achieved
firm growth during the period.
- Long-Term Care revenue rose by 16.4%, with an average
occupancy rate of 72.9% in the period as a whole versus 76.5% in
the first half of 2023. This reflects new beds coming onstream as
part of the opening of three new greenfield facilities in
favourable market conditions.
- Revenue in the Specialty Care segment, which accounted
for just under 2.4% of the total in the Netherlands, fell slightly
during the period (down 2.5%).
- The Community Care segment – which accounts for around
14.7% of the Group’s revenue in the Netherlands – achieved organic
revenue growth of 16.5%.
As a result, and taking into account limited cost inflation,
EBITDAR in the region as a whole totalled €82 million in the
first half of 2024, up 4.0% compared with the first half of 2023.
On that basis, EBITDAR margin was almost unchanged at 21.4% (down
10 basis points year-on-year).
1.2.4 - Italy
In millions of euros
H1 2023
H1 2024
Reported growth
Organic growth
Revenue
312
320
+2.7%
+3.6%
IFRS 16
65
70
+7.4%
EBITDAR margin
20.8%
21.8%
The Italian market remained buoyant in the first half, with
revenue up 3.6% in organic terms.
- Long-Term Care revenue grew by 7.3% on an organic basis,
supported by a high occupancy rate of 96.2% on average during the
period as a whole, up slightly from the already-high level of 93.2%
in the first half of 2023. The occupancy rate was 97.0% in June
2024 versus 95.1% in June 2023.
- Revenue in the Specialty Care segment, which accounted
for around 46% of the total in Italy, was stable during the period
(down 0.9%).
- The Community Care segment – around 7.4% of the Group’s
revenue in Italy – achieved organic revenue growth of 11%.
This resulted in EBITDAR of €70 million in Italy in the
first half of 2024, up from €65 million in the first half of 2023,
and EBITDAR margin increased by 100 basis points.
1.2.5 - Spain/UK*
In millions of euros
H1 2023
H1 2024
Reported growth
Organic growth
Revenue
136
140
+2.6%
+15.1%
IFRS 16
25
27
+9.1%
EBITDAR margin
18.1%
19.2%
* The disposal of all of the Group’s UK operations was completed
on 9 April 2024. Accordingly, the Group’s performance includes UK
figures for the whole of the first quarter of 2024.
The region as a whole posted solid revenue growth of 15.1% on an
organic basis, supported by the Group’s good momentum in Spain in
the first six months of the year along with price rises and the
ramp-up of business levels in the UK in the first quarter (the
whole of the UK business was deconsolidated on 9 April after the
Group sold all of its assets and business activities in that
country).
In Spain, revenue totalled €123 million in the first half of
2024, up 13.9% on an organic basis.
- Revenue in the Long-Term Care segment – which accounts
for around 20.6% of revenue in Spain – rose by 14.2% on an organic
basis. This was supported by a slight increase in prices and an
average occupancy rate of 89.0% over the first half as a whole
versus 84.1% in the first half of 2023. The occupancy rate was
89.9% in June 2024 versus 83.8% in June 2023.
- Revenue in the Specialty Care segment, which accounted
for around 75% of the total in Spain, rose by 10.3% in both
reported and organic terms. Revenue growth resulted from the
Group’s strong momentum in this business segment, which is being
boosted by the expansion of its network and service offering
following the acquisition of Grupo 5.
- The Community Care segment – which only accounts for
around 4.3% of the Group’s revenue in Spain – remained highly
volatile, with revenue growth of 115.9%.
In the UK, revenue totalled €17 million in the period up to 9
April 2024, the date on which the Group sold all of its UK assets
and business activities. By comparison, Clariane generated revenue
of €29 million in the UK in the first half of 2023.
In the region as a whole, EBITDAR totalled €27 million in
the first half of 2024 versus €25 million in the first half of
2023. On a reported basis, EBITDAR was up 9.1%. In Spain, EBITDAR
was very strong, rising by 27.0% in reported terms to €23.1
million, while EBITDAR margin rose by 190 basis points.
2 - Cash flow statement
In millions of euros, excluding IFRS
16
H1 2023
H1 2024
EBITDA
285
290
Operating cash flow
34
169
Operating free cash flow
45
74
Development investments
-71
-60
Acquisitions
-143
-37
Real estate investments
-161
-42
Capital increase and dividend and
coupon payments
-15
73
Real-estate partnerships
+119
-99
Disposals and other scope variations
+31
+236
Cash flow from discontinued operations
-12
-12
Other (including accrued interest and
change in debt related to convertible instruments)
-25
-37
Change in net debt (including IAS
17)
+232
-95
Net debt decreased by €95 million in the first half of 2024
compared with a €232 million increase in the same period of 2023.
This reduction in net debt was due to a very sharp fall in
investments in the first half of 2024 (down 63% to €139 million
versus €375 million in the first half of 2023), an increase in
operating free cash flow (€74 million versus €45 million in the
first half of 2023), and €236 million of proceeds from disposals
carried out in the first six months of the year net of fees and the
reserved capital increase, partly offset by the payment of coupons
on equity-like instruments in a net amount of €73 million.
3 - Real-estate portfolio
The Group’s real-estate portfolio had a value of €2,672 million
at 30 June 2024, versus €3,189 million at 30 June 2023 and €3,007
million at 31 December 2023.
Two-thirds of this change was due to disposals in the first half
of the year. It also reflects the continued increase in the average
capitalisation rate, which now stands at 6.3% (compared with 5.9%
in December 2023 and 5.5% at 30 June 2023), although to a lesser
extent in the first half compared with the previous six months.
That change had no impact on the valuation of assets in the
Group’s financial statements, which are recognised at historical
cost except for recently acquired assets.
Real-estate debt amounted to €1,680 million at 30 June 2024.
With its real-estate portfolio valued at €2,672 million on the same
date, this represents a Loan to Value (LTV) of 63% versus
58% at 30 June 2023 and 61% at 31 December 2023. This transitory
increase in the LTV is due to the low level of debt in the
portfolios sold (mix effect) and the increase in capitalisation
rates.
Readers are reminded that the Group’s syndicated loan agreement
includes an LTV covenant of 65%.
4 - Balance sheet
The Group’s net debt was €3,771 million at 30 June 2024 versus
€4,012 million at 30 June 2023 and €3,854 million at 31 December
2023.
The change in net debt reflects:
- Gross borrowings and debt of €4,286 million at 30 June 2024
versus €4,387 million at 30 June 2023;
- A cash position of €515 million at 30 June 2024 versus €375
million at 30 June 2023.
On 5 July, the Group received net proceeds of €234.4m from the
rights issue, enabling it to reduce its debt by the same
amount.
Real-estate debt amounted to €1,680 million at 30 June 2024.
Given the timetable of the capital increases and their
indivisible nature, along with the ongoing asset disposal
programme, a temporary waiver of the syndicated loan agreement was
obtained, solely as regards the financial leverage ratio, at 30
June 2024: for the purposes of calculating the leverage ratio at 30
June 2024, the net proceeds of the capital increases were deducted
from consolidated net debt as defined in the initial agreement,
subject to those proceeds being received within 30 days of the end
of the ratio period concerned. 1
Accordingly, as agreed with the banks providing the syndicated
facility, the financial leverage ratio calculation includes the
proceeds of the rights issue completed on 5 July 2024, the
net amount of which was €234.4 million.
On that basis, the Group’s financial leverage ratio, as
defined in the syndicated credit facility announced on 25 July
2023, was 3.6x at 30 June 2024 versus 4.1x at 30 June 2023
and 3.8x at 31 December 2023.
Under the terms of its syndicated credit facility, the Group’s
leverage covenant will be progressively lowered to 4.5x in June
2024, 4.25x in December 2024, 4.0x in June 2025 and 3.75x in
December 2025, as previously communicated.
As of 30 June 2024, the Group had drawn the full amount of its
revolving credit facility, i.e. around €493 million.
5 - Update on the Refinancing Plan
This plan, which aims to raise a total amount of €1.5 billion,
is intended to secure and accelerate Clariane’s debt-reduction
trajectory and enable the Group to have a financial position suited
to an economic environment that has been made more difficult by
inflation, higher interest rates and tougher conditions in the
credit and real-estate markets, and to give it room for manoeuvre
in terms of executing its strategy.
With its successful rights issue on 3 July 2024, Clariane
completed the third tranche of its plan to strengthen its
financial position, which it announced on 14 November 2023.
The rights issue followed the €92.1 million reserved capital
increase that took place on 12 June 2024. Of that amount, around
€74.1 million was subscribed by investment group HLD, around €15
million by the Flat Footed fund and around €3 million by Leima
Valeurs.
The main aim of the capital increases was to reduce Clariane’s
debt and strengthen its financial position, and to ensure that it
can fulfil its “At Your Side” corporate project and its commitments
as a purpose-driven company.
The net proceeds of the capital increases, representing
approximately €324 million, were allocated as follows: €175 million
to the early repayment of the outstanding real-estate-backed bridge
term loan and approximately €149 million to strengthening the
Group's liquidity.
Following completion of the capital increases, Clariane has
sufficient working capital to meet its obligations over the next 12
months. After repayment of the forthcoming maturities detailed in
note 9.2 to the condensed consolidated half-year financial
statements at 30 June 2024, using the proceeds of the capital
increases and the Group's cash, Clariane will be able to meet the
minimum liquidity condition of €300 million to renew its revolving
credit facility (RCF) if necessary.
Clariane also reiterates that it completed the first two
parts of this plan in December 2023:
- The creation of the “Gingko” real-estate partnership with
Crédit Agricole Assurances, raising €140 million on 15 December
2023, followed by the creation of the “Juniper” real-estate
partnership, raising €90 million on 28 December 2023 (that €90
million was repaid to Crédit Agricole Assurances, via its Predica
subsidiary, when Clariane completed the disposal of its UK business
in April 2024);
- Arrangement of a €200 million real-estate-backed bridge term
loan with Crédit Agricole Mutuel de Paris et d’Ile de France
(CADIF), LCL and Crédit Agricole Corporate and Investment Bank
(CACIB).
The Group has also embarked on the fourth and final part of
the plan, i.e. a programme to dispose of operational assets and
proceeds and to form asset partnerships, intended to refocus its
business activities geographically and raise around €1 billion in
gross disposal proceeds. With the disposals completed in the UK and
Netherlands in the first quarter of 2024 and the upcoming disposal
of its Home Care business in France – which was announced on 6 May
2024 and received a positive opinion from staff representative
bodies on 14 May 2024.
With these transactions, the Group reiterates that it has
secured around 40% of this disposal programme to date. The progress
of this programme has mainly resulted in the recognition to date of
a loss of around -€40m on the disposal of the UK business,
provisioned in the financial statements to 31 December 2023.
The Group is actively working on several disposal scenarios to
ensure that it achieves its target of one billion in gross proceeds
from disposals by the end of 2025. Depending on the differences
that may be observed between market values and values in use, some
transactions could result in capital losses, in addition to the
capital losses recognised in the 2023 financial statements.
6 - ESG and social performance
In line with its 2024-2028 ESG strategy and its commitments as
part of its transformation into a purpose-driven company, the Group
achieved the following milestones in the first half of the
year:
- After making a commitment to joining the Science-Based Targets
initiative (SBTi) in 2023, in June 2024 Clariane obtained official
validation of its targets as regards reducing greenhouse gas (GHG)
emissions in line with the Paris agreements. Those targets apply to
all emission scopes (Scopes 1-3):
‒ Clariane is committed to reducing its Scope
1 and 2 GHG emissions in absolute terms by 46.2% between 2021 and
2031;
‒ It is also committed to reducing its Scope
3 GHG emissions – arising from purchases of goods and services,
waste and employee travel – in absolute terms by 27.5% between 2021
and 2031.
- A Climate Committee has been set up in 2024 to oversee this
low-carbon trajectory, bringing together the Group’s experts
regarding the main sources of carbon reduction. The Committee meets
once per quarter.
- The Group has also deployed a tool to measure its carbon
footprint and monitor its low-carbon trajectory since March 2024,
and it will be gradually rolled out across the various functions
concerned. The tool will enable the Group to plan and complete
carbon-reduction initiatives.
- The Mission Committee’s first report was completed and
published in late April 2024 and sets out the Committee’s opinions
of the Company’s initiatives in relation to each of its social and
environmental targets. The report can be viewed on Clariane’s
website:
https://www.clariane.com/sites/default/files/2024-05/clariane_rcm_2024_uk_mel_23052024.pdf
- In the first half of 2024, Clariane obtained Top Employer
Europe 2024 certification from the Top Employers Institute, making
it the first group in the healthcare and medico-social sector to
receive it at the European level. This certification recognises the
Clariane group’s commitment to its employees’ working conditions
and career development. Clariane had already achieved Top Employer
certification in five countries. In Germany, Clariane obtained
certification for the fourth consecutive year, in France for the
third consecutive year, in Belgium and Italy for the second
consecutive year and in the United Kingdom for the first time.
- At the end of 2023, Clariane negotiated and signed the European
charter on the fundamental principles of social dialogue with the
European Company Works Council (CE-SE) and the European Federation
of Public Service Unions (EPSU). Several indicators have been
defined to monitor the implementation of the charter, including the
transposition of the charter in the various countries (transposed
and signed in Germany so far), the creation of national dialogue
bodies in countries where they previously did not exist (completed
in Spain), and social dialogue training for site managers (an
e-learning module for all Group companies is currently being
finalised). In June 2024, Clariane received a social innovation
award for this initiative.
- Finally, in early July 2024, the Group signed a partnership
agreement with the University Hospital of Toulouse with a view to
contributing to the WHO’s ICOPE (Integrated Care for Older People)
programme via its Petits-fils home care business. The ICOPE
approach aims to help older people preserve and maintain the
essential functions of mobility, memory, nutrition, humour, sight
and hearing. For that purpose, the University Hospital of
Toulouse’s Department of Geriatric Medicine has developed a mobile
app called Icope Monitor, which measures a person’s capabilities in
a few minutes with a view to preventing them from becoming
dependent. Staff from pilot Petits-fils branches will receive
training in rolling out the app among older adults that use the
Petits-fils network in partnership with the Department of Geriatric
Medicine.
7 - Outlook for 2024
In 2024, the Group will continue to focus on improving its
performance in a balanced way and on maintaining a high level of
quality in all its activities, in line with its “At Your Side”
corporate project.
- Clariane expects organic revenue growth to remain above
5%, supported by a steady increase in business volumes and
ongoing price adjustments.
- It also expects EBITDA, excluding IFRS 16 and expected
disposals, to remain at least stable taking into account
the expected absence of any contribution from real-estate
development activities in 2024.
In line with the plan to strengthen its financial position, the
Group has made improving cash flow generation and controlling debt
levels its top priorities. In terms of expenditure:
- The Group will maintain its maintenance spending at a
normal level, which should be around €100 million per
year.
- Annual growth investments are expected to average around
€200 million in 2024 and 2025, much less than in 2023.
Finally, the Group is aiming to reduce its financial leverage
ratio to below 3.0x and its LTV to 55% by the end of
2025 (see section 8 “Outlook for 2023-2026” below).
As regards non-financial indicators and adjusted for
changes in scope resulting from the disposal plan, the Group has
set the following targets:
- Maintain a net promoter score (NPS) of at least 40 among
residents/patients and families;
- Continue having more than 7,000 staff members undertaking
training courses leading to qualifications, in line with its
purpose-driven commitments;
- Reduce its lost-time accident frequency rate by at least a
further 8 points;
- Implement a low-carbon energy trajectory compatible with the
Paris Agreements and validated by the Science Based Targets
initiative (SBTi).
8 - Outlook for 2023-2026:
The Group’s reiterates that its targets for the period from 1
January 2023 to 31 December 2026 are as follows:
- As regards revenue, it is aiming to achieve a
compound annual growth rate (CAGR) of around 5%, supported
by a steady increase in occupancy rates and business volumes,
particularly in outpatient care, and by a catch-up effect in
prices, particularly in Germany. This growth target reflects the
following expected contributions of the Group’s various
geographical markets:
‒ France: CAGR 2023-2026 of over
5%, based in particular on a gradual increase in the occupancy
rate of long-term care nursing homes to 93% in 2028;
‒ Germany: CAGR 2023-2026 of around
7%, excluding the 10% of facilities that the Group intends to
cease operating;
‒ Belgium/Netherlands: CAGR 2023-2026
of over 8%, based in particular on growth in the Dutch
network from 52 to 90 facilities in operation and a gradual
increase in the occupancy rate of long-term care nursing homes in
Belgium to 97% in 2027;
‒ Italy: CAGR 2023-2026 of
2-3%, based in particular on a gradual increase in the
occupancy rate of long-term care nursing homes to 98% in 2028;
‒ Spain: CAGR 2023-2026 of over
15%, 75% of which will come from service contracts.
- Across the various geographies and based on the contributions
set out above, growth in the Group’s business segments should be as
follows:
‒ Long-Term Care: organic growth of
3-5% per year;
‒ Specialty Care: organic growth of
4-6% per year;
‒ Community Care: organic growth of
over 10% per year.
- The Group is aiming to increase EBITDA margin excluding IFRS
16 by 100-150 basis points by 2026 compared with the 2023
figure of 12.2%, mainly through revenue growth achieved by
increasing the occupancy rate and developing outpatient services,
along with targeted improvement measures regarding central costs,
expenditure on rent and energy costs, and improved performance in
Germany;
- Clariane is also aiming to reduce its financial leverage
ratio to below 3.0x by 31 December 2025 and achieve an LTV of
55% in respect of its real-estate debt by the same date,
reflecting the plan to strengthen its financial position but also a
disciplined approach to expenditure: around €100 million per year
for building maintenance and around €200 million in total for
development expenditure including real estate, rel. Accordingly,
net debt excluding IFRS 16 should come down to around €2.7-3.0
billion in 2026, with real-estate debt expected to be around €1.4
billion, giving an LTV of around 55% (assuming a capitalisation
rate of 6.7%) and non-real-estate debt totalling €1.3-1.6
billion.
9 - Conference call:
In relation to the publication of its first-half 2024 results,
Clariane will hold a conference call in English at 3.00pm CEST on 6
August 2024.
To take part in the call,
- please dial one of the following numbers:
‒ Paris: +33 (0)1 70 37 71 66
‒ UK: +44 (0)33 0551 0200
‒ US: +1 786 697 3501
- You can watch the live webcast here.
A playback of the conference call will be available here.
The presentation used in the conference call will be available
on Clariane’s website (www.clariane.com) from 12.00pm (CET).
10 - Forthcoming events
Publication of third-quarter 2024 revenue: 23 October 2024 after
the Euronext Paris market close.
About Clariane
Clariane is the leading European community for care in times of
vulnerability. It has operations in six countries: Belgium, France,
Germany, Italy, the Netherlands and Spain.
Relying on their diverse expertise, each year the Group’s 60,000
professionals provide services to almost 900,000 patients and
residents in three main areas of activity: long-term care nursing
homes (Korian, Seniors Residencias, Berkley etc.), specialist
healthcare facilities and services (Inicea, Ita, Grupo 5,
Lebenswert etc.), and alternative living solutions (Petits-fils,
Ages&Vie etc.).
In June 2023, Clariane became a purpose-driven company and added
a new corporate purpose, common to all its activities, to its
articles of association: “To take care of each person’s humanity in
times of vulnerability”.
Clariane has been listed on Euronext Paris Section A since
November 2006.
Euronext ticker: CLARI.PA - ISIN: FR0010386334
Appendices – Consolidated financial
statements for the six months ended 30 June 2024
Income statement
€m
H1 2024Incl. IFRS 16
IFRS 16 adjustments
H1 2024Excl. IFRS 16
H1 2023Excl. IFRS 16
∆
Revenue
2 636,0
-
2 636,0
2 484,8
151,2
Growth%
6,1%
-
6,1%
12,2%
-610 bps
Staff costs
(1 579,0)
-
(1 579,0)
(1 520,3)
(58,7)
% of revenue
59,9%
-
59,9%
61,2%
-130 bps
Other costs
(499,8)
2,8
(497,0)
(426,3)
(70,7)
% of revenue
19,0%
-
18,9%
17,2%
+170 bps
EBITDAR
557,2
2,8
560,0
538,3
21,7
% of revenue
21,1%
-
21,2%
21,7%
-50 bps
External rents
(38,9)
(231,2)
(270,1)
(253,0)
(17,1)
% of revenue
1,5%
-
10,2%
10,2%
-
EBITDA
518,3
(228,5)
289,9
285,3
4,6
% of revenue
19,7%
-
11,0%
11,5%
-50 bps
Amortisation & Depreciations
(341,8)
198,0
(143,9)
(127,7)
(16,2)
Provisions
(20,8)
-
(20,8)
(20,9)
0,2
EBIT
155,7
(30,5)
125,2
136,7
(11,4)
% of revenue
5,9%
-
4,8%
5,5%
-70 bps
Non current expenses
(34,1)
7,3
(26,8)
(23,0)
(3,8)
Operating income
121,6
(23,2)
98,4
113,7
(15,2)
% of revenue
4,6%
-
3,7%
4,6%
-90 bps
Financial result
(147,9)
51,8
(96,1)
(63,5)
(32,7)
Net income before tax
(26,3)
28,6
2,3
50,2
(47,9)
Income tax
6,8
(3,5)
3,4
(11,0)
14,3
Tax rate
25,9%
12,1%
(144,6%)
21,8%
-16640 bps
Income from equity method
(0,7)
(0,7)
0,1
(0,8)
Minority Interests
(8,4)
-
(8,4)
(7,0)
(1,4)
Net result from continuing
activities
(28,6)
25,1
(3,4)
32,4
(35,8)
% of revenue
(1,1%)
-
(0,1%)
1,3%
-140 bps
Net result from discontinued
activities
(23,6)
(0,6)
(24,1)
(6,7)
(17,4)
Net profit - Group share
(52,2)
24,6
(27,6)
25,6
(53,2)
% of revenue
(2,0%)
-
(1,0%)
1,0%
-200 bps
Balance sheet
Assets
In thousands of euros
Notes
30.06.2024
31.12.2023
Goodwill
5.1
3 253
3 288
Intangible assets
5.2
2 345
2 343
Property, plant and equipment
5.3
3 185
3 144
Rights of use
5.5
3 688
3 652
Financial assets
108
109
Equity-accounted investments
6
58
59
Deferred tax assets
11
116
87
Non-current assets
12 753
12 682
Inventories
3.5
25
28
Trade receivables and related accounts
3.5
619
565
Other receivables and currents assets
3.5
583
669
Current tax receivables
51
27
Financial instruments – assets
9.2/9.3
12
10
Cash and cash equivalents
9.3
515
678
Current assets
1 805
1 977
Assets held for sale
2.3
56
521
TOTAL ASSETS
14 615
15 181
Liabilities
In thousands of euros
Notes
30.06.2024
31.12.2023
Share capital
1
534
Premiums
1 296
1 206
Reserves and consolidated results
2 190
1 843
Equity attributable to owners of the
Group
7
3 487
3 584
Non-controlling interests
370
354
Total shareholder’s equity
3 857
3 937
Provisions for pensions
83
78
Deferred tax liabilities
11
574
547
Other provisions
10
47
51
Loans and financial liabilities
9.2
3 157
3 495
Non-current lease liabilities
5.5
3 684
3 610
Other non-current liabilities
62
77
Non-current liabilities
7 607
7 858
Provisions for current liabilities
10
29
74
Trade payables and related accounts
3.5
563
649
Other payables and accruals
3.5
985
921
Current tax payables
35
23
Borrowings due within one year and bank
overdrafts
9.2
1 129
1 037
Current lease liabilities
5.5
399
413
Financial instruments - Liabilities
9.2/9.3
0
1
Current liabilities
3 139
3 119
Liabilities associated with assets held
for sale
2.3
12
267
TOTAL LIABILITIES
14 615
15 181
Cash flow statement
€m
H1 2024
IFRS 16 impact
H1 2024
H1 2023
Excl. IFRS16
Incl. IFRS 16
Excl. IFRS 16
EBITDA
289,9
228,5
518,3
285,3
Non cash & others
(53,8)
5,8
(48,0)
(71,7)
Change in WC
(15,5)
0,5
(14,9)
(124,6)
Operating Capex
(52,1)
-
(52,1)
(55,3)
Operating cash flow
168,5
234,8
403,3
33,7
Income tax paid
(2,2)
0
(2,2)
(6,6)
Financial expenses
paid/received
(92,2)
(48,9)
(141,1)
18,3
Free cash flow
74,1
185,9
260,0
45,4
Development Capex
(60,5)
-
(60,5)
(70,7)
Financial investments (bolt-on
acquisitions)
156,0
-
156,0
(143,1)
Net Free cash flow
169,6
185,9
355,5
(168,4)
Dividends / hybrid coupons paid
(16,0)
-
(16,0)
(12,8)
Real estate investments /
divestments
1,0
8,7
9,7
(161,5)
Partnership Real Estate
(99,7)
-
(99,7)
116,5
Increase in equity
89,3
-
89,3
0,0
Other net debt
(37,0)
(267,0)
(304,0)
5,8
Cash flow from discontinued
operations
(11,8)
-
(11,8)
(12,0)
Net debt variation
95,4
(72,4)
23,0
(232,3)
________________________ 1This waiver has no effect on the
calculation of the financial leverage ratio used in the syndicated
loan agreement to determine mandatory early payments, particularly
those applying to the proceeds of asset disposals taking place in
the second half of 2024.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240805566765/en/
Investor contacts
Stéphane Bisseuil Head of Investor Relations +33 (0) 6 58
60 68 69 stephane.bisseuil@clariane.com
Press contacts
Julien Charles Press Relations Officer 06 70 89 04 80
julien.charles@clariane.com