emeis (EMEIS) H1 2024 earnings summary

Executive summary

• Operational performance improved with 9.2% revenue growth to €2,772 million, driven by higher occupancy rates and pricing across all geographies, supported by transformation initiatives and a new governance structure.

• Major financial restructuring included a €390 million capital increase, reverse share split, and significant equity restoration to €1.9 billion, reducing net debt to €4,425 million at end-June 2024.

• EBITDAR remained stable at €339 million (12.2% margin), with margin pressure from higher personnel costs and slower recovery in France.

• Net loss attributable to shareholders improved to €257 million from €371 million year-over-year, reflecting lower financial expenses and fewer non-recurring items.

• Asset management advanced with €452 million in disposals since mid-2022 and a €1.5 billion target by end-2025.

Financial highlights

• H1 2024 revenue reached €2,772 million (+9.2% yoy, +8.9% organic), with nursing homes up 11.6% and clinics up 5.1%.

• EBITDAR was €339 million (+0.8% yoy), margin 12.2% (down from 13.2% in H1 2023).

• Net loss improved to €257 million from €371 million in H1 2023; diluted loss per share was -€1.71.

• Free cash flow remained negative at -€178 million, but improved by €111 million year-over-year.

• Net debt reduced to €4,425 million at end-June 2024, down €217 million in six months and nearly €4.8 billion in 12 months.

Outlook and guidance

• 2024 EBITDAR guidance confirmed at €700–730 million (0–5% growth vs. 2023); pre-IFRS 16 EBITDA expected around €210 million.

• Accelerated asset disposals target €1.5 billion by end-2025, with €670 million gross expected in 2024.

• Focus remains on sustaining occupancy recovery, controlling operating expenses, and further strengthening the financing structure.