LNA Santé (LNA) Q2 2024 TU earnings summary

Executive summary

• Operating revenue reached €386.3m in H1 2024, with organic growth of 5.7% year-over-year, surpassing the 4.5% guidance for the year.

• Business momentum remained robust, with occupancy rates above 94% in French nursing homes and strong growth in home hospital care.

• The company expanded through the acquisition of a home hospital care facility in Angers, exceeding 1,000 patients cared for at home daily.

• Regulatory changes and underfunding in RC clinics are pressuring economic performance, particularly due to a pricing reform.

Financial highlights

• Q2 2024 operating turnover was €197.0m, up 9.4% year-over-year; H1 2024 operating turnover was €386.3m, up 8.2%.

• Organic growth for Q2 was 6.7% and for H1 was 5.7%, after adjusting for reclassification of social measure funding.

• Healthcare sector France sales reached €213.4m in H1, up 9.1% reported and 4.7% organic.

• International sector sales were €19.0m, up 6.1% organically.

• Real estate turnover was €3.3m, half of H1 2023, with recovery expected in H2.

Outlook and guidance

• Organic growth for 2024 is confirmed at over 4.5%, despite margin pressure from tariff reforms.

• The company maintains a cautious outlook for H1 2024 results due to the impact of RC clinic financing reforms.

• Real estate sales are expected to rebound in H2, supporting long-term growth.