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 positively and average care home occupancy rising to 90.2%.

• 2024 guidance confirmed for organic revenue growth above 5% and stable EBITDA, excluding IFRS 16 and disposals.

• Asset disposal program progressed, securing 48% of the €1 billion target by end of September 2024.

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

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

Financial highlights

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

• Growth was well balanced between volume (+2.3%) and price/mix (+4.0%), with price now the main driver.

• Change in scope had a negative impact of -0.9% on revenue.

• 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 to remain above 5%, with EBITDA at least stable, excluding IFRS 16 and disposals.

• 2023-2026 outlook targets ~5% revenue CAGR, 100-150 bps EBITDA margin improvement, and financial leverage below 3.0x by end-2025.

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

• Targeting 92-93% occupancy in France by 2026, with stepwise increases expected.