Clariane (CLARI) Q3 2024 TU earnings summary

Executive summary

• Organic revenue grew 6.3% in the first nine months of 2024, with all business segments and regions contributing and average care home occupancy rising to 90.2%.

• 2024 guidance confirmed: organic revenue growth above 5% and stable EBITDA (excluding IFRS 16 and disposals), with no contribution from real estate development activities.

• Asset disposal program targeting €1bn by end-2025, with 48% secured by September 2024.

• Capital increases completed in mid-2024 to strengthen liquidity and support refinancing.

• New organizational structure and Deputy CEO role implemented in October 2024 to enhance operational excellence.

Financial highlights

• Nine-month reported revenue was €3,933m, up 5.4% year-over-year; organic growth was 6.3%.

• Organic growth driven by 2.3% higher volumes (€85m) and 4.0% price/mix (€150m), partially offset by a -0.9% scope effect (€-33m).

• All geographies posted solid organic growth: France +4.9%, Germany and Benelux +7.7%, Italy +3.4%, Spain/UK +14.3%.

• Network expanded to 1,216 facilities and nearly 91,000 beds, serving 736,000 residents and patients.

Outlook and guidance

• 2024 organic revenue growth expected above 5%, with stable EBITDA (excluding IFRS 16 and disposals).

• 2023-2026 targets: revenue CAGR ~5%, EBITDA margin (excl. IFRS 16) up 100-150 bps from 12.2% in 2023, financial leverage below 3.0x, LTV at 55% by end-2025.

• Maintenance capex to remain around €100m/year, growth investments at €200m/year for 2024-2025.

• Occupancy rates in France expected to reach 92-93% by 2026.