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Investing.com -- Emeis (EPA:EMEIS) on Monday reported a strong start to 2025, with organic sales rising 6.2% and average occupancy increasing by two percentage points to 87%, aided by improved performance in nursing homes and across its international operations.
Group sales reached €1.45 billion in the first quarter, up 5.2% year-on-year on a reported basis and 6.2% on an organic basis, according to the company’s quarterly statement.
Growth was attributed to a favorable price effect contributing 3.7 percentage points, a rise in occupancy rates adding 1.8 points, and the contribution of newly opened sites accounting for another 0.8 points.
Nursing homes, which represent nearly two-thirds of Emeis’ business, were the primary driver of growth, with organic sales up 9.6% compared with the first quarter of 2024.
The average occupancy rate for nursing homes rose to 86.4%, an increase of 2.1 percentage points from the previous year.
The Group’s average occupancy rate across all segments reached 87.0%, compared with 85.0% at the end of March 2024 and 83.0% in the same period of 2023. On a mature facility basis, excluding recently opened or restructured sites, occupancy was 88.0%.
International markets recorded strong performances. Organic growth reached 11.4% in Northern Europe, 9.5% in Central Europe, and 10.3% in Southern Europe and Latin America.
Central Europe, where occupancy rates approached 92%, showed the most marked improvement, while Northern Europe saw a three-point increase in occupancy to 85.3%.
In Southern Europe and Latin America, the adjusted occupancy rate on mature facilities stood at 91.9%, up 2.9 points from the first quarter of 2024.
In France, which accounts for 41% of Group sales, the average occupancy rate reached 87.6%, up 1.7 points.
Nursing homes in France saw occupancy rise 1.6 points to 83.5%, with organic sales up 3.6%, supported by both pricing and volume.
Adjusted for a non-recurring positive effect in the first quarter of 2024, organic growth in French retirement homes would have reached 4.0%.
Clinic operations remained broadly stable overall, with organic sales declining 0.4% year-on-year.
In France, clinics posted a 2.7% decline in organic sales, due to a lower number of full hospitalization days and a high comparable base in early 2024. This affected the volume of business, particularly in private rooms.
The company aims to complete €1.5 billion in divestments between mid-2022 and the end of 2025 to reduce debt.
Ongoing negotiations cover more than €2 billion in potential transactions, exceeding the remaining target and offering flexibility in execution, the company said.
Emeis confirmed its guidance for 2025. It expects EBITDAR to rise between 15% and 18% on a like-for-like basis, excluding the impact of any operational disposals, building on the momentum observed since the second half of 2024.