emeis (EMEIS) Q2 2024 TU earnings summary

Executive summary

• Revenue for H1 2024 reached €2,772 million, up 9.2% year-over-year, with all regions contributing to growth, mainly driven by price increases and improved occupancy rates.

• Group average occupancy rate rose to 85.3% (up 2.6 points), with notable gains outside France; France's nursing home occupancy improved but remains below expectations.

• EBITDAR for H1 2024 was stable at €330–340 million, as a 30% recovery outside France offset a decline in France due to higher resource commitments.

Financial highlights

• H1 2024 revenue: €2,772 million (+9.2% year-over-year), with organic growth of 8.9%.

• Q2 2024 revenue: €1,397 million (+7.1% year-over-year, +8.3% organic).

• Net debt at 30 June 2024: €4,470 million (excluding IFRS adjustments), with €653 million in cash.

• Undrawn credit line of €400 million available, maturing June 2026.

Outlook and guidance

• 2024 EBITDAR growth outlook revised to 0–5% over 2023, or €700–730 million (previously €800–835 million), mainly due to slower recovery in France.

• Pre-IFRS 16 2024 EBITDA expected around €210 million.

• Real estate disposals by end-2024 estimated at €670 million (vs. €750 million initial target), with €380 million expected in 2024.

• Additional operating asset disposals may occur to improve cash position by early 2025.