LNA Santé (LNA) H1 2024 earnings summary

Executive summary

• Operating revenue rose 8.2% year-over-year to €386.3m, with organic growth of 7.9% and adjusted organic growth of 5.7%.

• Maintained high occupancy rates across all sectors, reflecting strong demand and satisfaction.

• Demonstrated resilience amid RC clinic pricing reforms and inflationary pressures.

• Net profit increased 5.1% to €15.0m, maintaining a net margin of 3.9% of sales.

• Free cash flow improved to €19.0m, supported by strong operational execution.

Financial highlights

• Turnover reached €386.3m, up 8.2% from H1 2023.

• EBITDA (including IFRS 16) was €72.0m (+1.1%), with EBITDA margin at 18.6%.

• Net operating profit rose to €15.0m (+5.1%), with a net margin of 3.9%.

• Free cash flow from operations reached €19.0m, with closing cash at €70m and €99m in undrawn credit.

• Group net profit, group share, up 3.6% to €12.4m.

Outlook and guidance

• 2024 guidance confirmed: operating sales expected to exceed €780m, with organic growth near 6.5% and adjusted organic growth of 5.0%.

• EBITDA margin from mature sites targeted close to 11%.

• Debt leverage to remain below 2.0x.

• Pipeline of 1,900 beds in preparation, aiming for 10,750 beds by 2029.

• Market conditions remain favorable due to demographic trends and rising chronic disease prevalence.