Earnings call transcript: EMEIS Q2 2025 sees stock surge on performance

Emeis SA’s recent earnings call for Q2 2025 highlighted a robust performance, with the company’s stock surging 14.33% to 13.56 USD. According to InvestingPro data, the stock is currently trading above its Fair Value, with a market capitalization of $2.48 billion. The company, which generated revenue of $5.84 billion in the last twelve months, reported significant improvements in key financial metrics, spurred by strategic operational changes and a focus on innovation.

Key Takeaways

• Stock price increased by 14.33% following the earnings call.
• Organic sales growth reached 6.2%, with a notable EBITDA increase of 18.4%.
• Occupancy rates improved across the board, with nursing homes seeing a rise to 86.5%.
• The company is on track with its €1.5 billion disposal program, having already achieved €1.15 billion.

Company Performance

Emeis SA demonstrated strong performance in Q2 2025, with organic sales growth of 6.2% and an EBITDA increase of 18.4%. The EBITDA margin rose to 13.8%, up from 12.1% in previous periods. These results reflect the company’s successful implementation of efficiency strategies and a focus on occupancy rate improvements, particularly in its nursing homes segment, which grew by 8.6%.

Financial Highlights

• Revenue: Not specified in the call, but organic growth was 6.2%.
• EBITDA: Increased by 18.4% year-over-year.
• EBITDA Margin: Improved to 13.8% from 12.1%.
• Net Debt: Stable at €4.78 billion.

Market Reaction

The market reacted positively to Emeis SA’s earnings call, with the stock price jumping 14.33% to 13.56 USD. This movement places the stock close to its 52-week high of 14.22 USD. InvestingPro data shows an impressive year-to-date return of 95.68%, reflecting strong investor confidence in the company’s strategic direction. Discover comprehensive valuation analysis and more through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

Outlook & Guidance

Looking forward, Emeis SA anticipates an EBITDA growth of 15-18% at constant perimeter in 2025. The company plans to continue enhancing occupancy rates and optimizing costs, with expectations for further margin expansion. Additionally, capital expenditures are projected to reach €300 million, with €200 million allocated for maintenance and €100 million for growth.

Executive Commentary

CEO Laurent Guillaume expressed satisfaction with the company’s achievements, stating, "We are happy to share with you the point that these encouraging achievements... lead our figures to grow in line with our ambition." CFO Jean Marc Bossier added, "Our operational leverage to the upside is strong and will continue to be strong," underscoring the company’s confidence in its strategic initiatives.

Risks and Challenges

• Regulatory changes affecting clinics, with growth muted at 1.8%.
• Maintaining momentum in occupancy rate improvements.
• Potential macroeconomic pressures that could impact financial performance.
• Execution risks associated with the ongoing disposal program.
• Competitive pressures in key markets, requiring continuous innovation.

Q&A

During the Q&A session, analysts focused on the progress of Emeis SA’s disposal program, which is on track with €1.15 billion achieved out of the €1.5 billion target. There were also inquiries about pricing dynamics, particularly in Germany, where the company has experienced positive trends.

This comprehensive performance and strategic focus have positioned Emeis SA favorably in the market, as evidenced by the significant stock price increase and positive investor sentiment.

Full transcript - Emeis SA (EMEIS) Q2 2025:

Conference Moderator: Ladies and gentlemen, welcome to the EMAI’s conference call regarding its half year 2025 revenue and business update. I now hand over to Mr. Laurent Guillaume, the company’s CEO and Mr. Jean Marc Bossier, CFO.

Gentlemen, please go ahead.

Laurent Guillaume, CEO, EMAI: Yes. Thank you. Good morning to all of you, and thank you for attending this conference related to the presentation of our sales figures and business update at the June ’25. I hope it may sound clear to you along this presentation that we are particularly happy to deliver this set of figures, which provide evidence of the turnaround on the operating performance and the further strengthening of our balance sheet. Before going into detail about our performance in the first half of the year, I would like to share with you our pride of becoming a mission driven company following our AGM in June.

These statutes commit us to a future performance on social societal and environmental target, so to ensure AMEES as a group will contribute to turn the tide. Along this adoption of our mission driven statutes we’ve recently adopted, we’ve established four commitments, setting up our priorities to that extent. First one is to change the way the most vulnerable people and their families are perceived and promote the integration in our society. Second, contribute to the fair recognition and attractiveness of our profession. Third is to promote an inclusive approach to vulnerable people in local communities.

And third is to leverage innovation to deliver care that respects people and planet. These priorities will be converted into specific target objectives and monitored by a specific committee dedicated especially to these issues led by experiment professionals and experts with a chairperson being Doctor. Diepiquet, an internationally well known health specialist. Switching to the results and performance in the first half. A few months ago, you may remember while we were publishing our full year earnings figures, we told you that the resumption of our sales growth and the rising occupancy rates seen started to support our operating margin recovery from the beginning of the second half twenty twenty four.

We were particularly happy to show you the evidence of operational recovery, which is definitely confirmed in the first half twenty twenty five. Operating margins have indeed entered a phase of growth. We are following the right path. Occupancy rates have improved further everywhere and for every business we do operate. Price effect captured again this first half is proving that occupancy rate recovery achieved along with positive pricing power.

This is critical for us. This positive momentum on top line is mechanically feeding our operating margins, thanks to the good grip we had on operating expenses. Then therefore, EBITDA and EBITDA in H1 went strongly up providing confidence for the coming half years. So let’s go quickly on a few key figures. Topline is up 6.2% on an organic basis, driven up almost in all locations and all businesses, but particularly strong for nursing homes.

Occupancy rates have continued to improve. Average occupancy ratio is now 87%, of 1.7 points in twelve months. On mature perimeter, so excluding facilities opening in 2024 and early twenty twenty five, this would have even reached 88.2%. Strong growth of EBITDA, almost 20% up, and EBITDA up by 79% versus H1 last year. We are confident that EBITDA should be up in 25% by 15% to 18% at constant perimeter as per our guidance.

On top of that, we’ve been able to secure already close to EUR 1,150,000,000.00 of disposals since mid-twenty twenty two, including €482,000,000 of real estate and operational asset disposals cashed in year to date and under under firm commitments to date. And amongst the 2,000,000,000 potential disposals under discussion today, we can confirm now that more than 1,000,000,000 are in very advanced negotiation phase. This means that our 1,500,000,000.0 disposals target from mid-twenty two to end twenty twenty five can be comfortably confirmed and is even increasingly likely to be exceeded. The recent publications have shown improvements on occupancy criteria, no exceptions this time with a further increase almost everywhere and for all our businesses. Year to date, the upside capture is slightly stronger on nursing homes, whose occupancy rates grew in average a bit less than 200 basis points in twelve months.

The positive momentum is not fading out, and we expect this momentum to continue. Preliminary figures of July suggest positive feeling for the third quarter as well. This is a result of multiple new processes we put in place, focusing on quality and services, including a revised segmentation policy of our supply to ensure we do match the need with our various types of residents and types of residents and patients. So in total since 2021 average occupancy was seven points for nursing homes and more than five points for clinics. We can reasonably consider we are not quite yet where we should land ahead.

So this set of figures is not only showing a continuing supportive momentum on our revenues, but it also indicates a further step ahead in operating performances recovering that with strong growth in EBITDA and EBITDA as you can see on this slide. After reaching a trough in H1 twenty twenty four, EBITDA has now entered its way forward normalization with an almost 80% growth in one year at constant perimeter. But my point is to share with you today our confidence that this momentum will continue to feed our growth later this year and for the years ahead. For the years ahead, our market will be very supportive, but we are also building today with our teams of future performance. We do expect positive contribution to our performance from the following elements amongst others on which we do focus already while considering building future performance.

Occupancy should still be driven by the favorable momentum I told you about, and our policy should provide the capacity to capture further positive price effect as well. We continue to reinvestigate segmentation approaches regularly to tailor MA’s offers to resident needs and purchasing power. We have started to work on the operating expenses with a relatively good grip, ensuring a good allocation of workforce. We do put in place new processes and new tools to enhance efficiency and better adapt our business to reforms seen these past years. And we have also defined for each underperforming facilities dedicated action plans to restore performance in line with the group’s expectations, sharing best practices between teams and better adjusting offers to local needs are some of the measures that will drive performance ahead.

We are happy to share with you the point that these encouraging achievements along with the fact that operating expenses have been well kept under control, lead our figures to grow in line with our ambition, confirming that we are now in the right path. We are obviously still posting figures below our ambition, but we are in the right place on the road toward normalization. It’s now fair to say that this set of figures is a good milestone on the road to an embedded recovery that confirms our confidence for 2025 and beyond. Therefore, we can confirm today our guidance of 2025 with the EBITDA expected to grow at constant perimeter between 1518% in 2025 versus 2024. Before handing over to Jean Marc, I would like also to share with you an update on our disposal plan.

To date EUR 1,150,000,000.00 have already been sold since mid-twenty twenty two or are to date secured. This represents already a bit less than 80% of the EUR 1,500,000,000.0 disposal ambition before year end that we disclosed earlier. As you already know, potential additional disposals of €2,000,000,000 are under discussion, but amongst them, we can tell you today that more than €1,000,000,000 are now currently in advanced negotiations, thus enabling us to envisage that the group’s ambition in term of disposals could be exceeded. I now hand over to Jean Marc Bonsier, our Deputy CEO and Group CFO, who will present in greater detail the main financial achievements of the first half of the year.

Jean Marc Bossier, CFO/Deputy CEO, EMAI: Thank you, Laurent, and thank you to all of you for attending this call this morning. We are very happy to be able to present our preliminary key figures today. By way of introduction, I should point out that these figures are unaudited and may be potentially marginally modified between now and the publication of our Assurant results in September. That said, they are in line with the economic reality that we see emerging. The publication today highlights four main elements, which we will come back in detail through this presentation.

First, the solid sales growth of over 6.2% on an organic basis, benefiting from both favorable occupancy increases and positive price effects. Second, a strong recovery in our EBITDAR and EBITDA margin, thanks to a solid revenue growth, but also to operating expenses kept well under control. Third, net debt excluding IFRS perfectly stable at EUR4.78 billion, with a cash position at half year end of €398,000,000 And fourth, as a consequence of the above, a sharp reduction of our leverage ratio. So let’s start with our sales. Sales posted substantial organic growth of 6.2%, driven, as you can see on this slide, by a combination of three factors, which all have a positive impact: a price effect of 3.4, in line with Q1, but slightly below 2024, an occupancy rate effect of plus 1.8% and the effect of the ramp up of recently opened facilities for 0.9%.

This favorable growth trend can be mostly observed on nursing homes, for which turnover is up by 8.6%. Clinics have been more muted with a 1.8% growth increase, given changes in regulation in France that occurred recently, but also impacted by a lower number of full days of stabilization in health care facilities, which reduced the volume of business generated by private rooms. Without going too much into details here, it is worth noting that all geographical sectors recorded growth, except for France, which posted organic growth of 1%, but which is showing very encouraging signs as explained by Laurent, particularly in terms of occupancy rates, to which I will return later, all other regions posted remarkable growth rates. In Austria, in Belgium, in Germany, in Spain, The Netherlands, price effect contributed to a like for like growth between 48%. These are the markets where segmentation was particularly efficient.

Occupancy contributed to sales growth everywhere, but notably in Austria, in The Netherlands, in Germany, with contribution between plus 2% and plus 3%. Note as well that the ramping up facilities recently fed growth primarily in The Netherlands and in Iberia. We’ve been showing the next slides to you several times since a year, and today we can confirm that the momentum is still going on with occupancy rates continuing to improve everywhere. As said by Laurent, the group average occupancy rate rose by 1.7% to 87% versus 85.3% a year ago, continuing the gradual recovery in this aggregate that began to start early twenty twenty four. The recovery was mainly driven by nursing homes, where the average occupancy rate rose by 1.9 points year on year to 86.5 versus, I remind you, 85.3 at the 2024 and eighty two point one at the 2023.

In Central And Southern Europe, the level achieved are now above or close to ninety two percent back to pre COVID levels, especially if we remove from this computation the ramp up sites whose occupancy rates are naturally lower than those of mature sites. Note that excluding ramp up facilities, occupancy rates of the group would have been today eighty eight point two percent. A few words now about our two largest markets, namely Germany and the French nursing homes. In France, it is interesting to note that the improvement in occupancy rate for nursing homes is gradually confirmed quarter after quarter, since more math each quarter than the previous one. As you can see on the right side of the slide, the gap in occupancy rate versus the previous year is growing every single quarter and is now 2% above last year, where it was only plus 0.5 points a year ago.

This acceleration clearly illustrates, as you can see, that the recovery in France is well underway since 2024 and is gaining momentum. This provides confidence for the coming years. In Germany, the recovery is following a steady and constant pace. And here again, the momentum does not seem to fade out, fueling our confidence for this market as well. In terms of operating margin, the improvement year on year is considerable.

EBITDA, which we break down on this slide, is up 18.4% and even 19.5 on the like for like basis if we exclude the effect of the disposal of our activities in Czech Republic. If we isolate the pure operating performance, which we exclude the effect of disposal, change in perimeter, change in real estate capital gain and the impact of exchange rates. We see that this performance increased the EBITDAR increased by EUR94 million in the first half versus the first half of last year. And this trend is particularly strong and is due to not only the solid organic growth in revenue, but also the limited increase in operational expenses. As you can see, operational expenses is only plus 3.1% versus last year.

If we break down the evolution of the cost by nature, as you can see, staff costs have been reduced by one point as a percentage of sales versus last year, reflecting the measures we progressively implemented during the last quarters to optimize the allocation of our human resources. And at the same times, as you can see as well, we benefited from the initial effect of our cost rationalization measures launched in H1, which led to a reduction in the intensity of the other costs as well. As you can see, minus 0.6 points as a percentage of sales. And as a result, these measures are enabling us to maximize the conversion of revenue growth into operational profitability. And as a consequence, our EBITDA margin went up from 12.1% in H1 twenty twenty four to 13.8% in H1 twenty twenty five.

And if we combine, in addition to that, the steady performance of our rental expenses that we have started to rationalize, you can see that the margin on EBITDA went up more than 22.1% to reach 5.4% this year. More than the same on the next slide, this chart illustrates that operating margin have started their ways towards normalization. In euro term, the positive trend in sales plus EUR136 million year on year was largely translated transferred into EBITDA plus EUR62 million and EBITDA plus EUR66 million. This is an evidence that our operational leverage to the upside is strong and will continue to be strong again ahead. A few words about our disposal program.

Laurent told you that EUR 1,150,000,000.00 have already been cashed in or are already secured by contract and will be cashed in soon. This represents already more than 75% of the total EUR 1,500,000,000.0 disposal ambition that we have between mid-twenty twenty two and the 2025. If I were to break down this EUR 1,150,000,000.00, I would say that EUR 700,000,000 and EUR 6,000,000 of PropCo disposal have already been cashed in by the group. If we had done the OpCo disposal that we’ve cashed in, namely the disposal of Czech Republic, Chile and Latvia, it adds up to EUR $915,000,000. And if we are also considering the transaction that are signed but not yet closed, we end up to EUR 1,150,000,000.00.

In addition, as said by Laurent, we are currently in discussion regarding nearly €2,000,000,000 in potential additional disposals. But more importantly, more than half of these potential disposals, let’s say more than €1,000,000,000 are now at a very advanced stage of negotiation. And this allow us to envisage that our disposal targets is now increasingly likely to be exceeded. If I enter a little bit more into what we’ve done since the beginning of the year, as you can see on this slide, our M and A and real estate team have been very busy. The total if I start by PropCo disposal, a total of EUR $346,000,000 have been received since the beginning of the year or are under S and P agreement to date, of which €127,000,000 were collected and cashed in between January and the July, of which €65,000,000 have been cashed in by the June already.

This disposal has been closed since the beginning of the year at an average capitalization rate slightly below 6%, which is remarkable, and have generated EUR 5,000,000 of capital gain. And a further EUR $219,000,000 is already secured via SAP agreements and the proceeds of those disposals will be collected in the coming months. And at the same time, we have collected for OpCo disposal this time EUR136 million in the first half, and this is the impact of the disposal of our Czech Republic activities. A few words about our net financial debt. It’s and this is the result of three factors in my opinion.

First, real estate, the PropCo and OpCo disposal program completed during the first half, as I just told you. But also, second, a sharp improvement of our recurring free cash flow, which although still negative, was up EUR 82,000,000 compared to the same period last year. This improvement in the recurring free cash flow is a result of the recovery of our operational margin, but also a better management of our CapEx and working capital. And third, a third explanation for the debt stability, the continuous rationalization of our real estate development program. A consequence of stabilized net debt and a sharp increase in EBITDA is obviously the rapid improvement of our leverage ratio, which has been reduced in six months from 19.5 times to 15.4 times.

And for the record, this ratio was 23 times a year ago. At the June, our cash position was EUR $398,000,000. And please note, to be clear with you, that this amount does not include liquidity that we can expect first from the proceed of disposal already secured. And as a reminder, 62,000,000 were cashed in by the group in July. Second, it does not include the potential contribution that one could reasonably expect from the transaction which are today in advanced negotiation.

And finally, it does not include a new factoring program that we signed in July for a further EUR 120,000,000. Ladies and gentlemen, thank you very much for your attention, and I hand over to Laurent to conclude this presentation.

Laurent Guillaume, CEO, EMAI: Thank you, Jean Marc. Thank you. Before answering to your questions and the question we have, I would like to summarize this presentation with key elements. First, the positive trends of top line continue with a strong organic growth of 6.2% and even 8.7% on nursing homes, supported by the positive momentum on occupancy rates and positive price effect. Second, this strong momentum on the top line and thanks to a good grip on cost is giving a strong momentum also on operating margins, up almost 20% for the EBITDA and almost 80 for the EBITDA.

Interesting to keep in mind that the largest contributor in EUR 1,000,000 are France and Germany. Third, as a consequence, the positive trends seen in H2 twenty twenty four is continuing and we do reiterate our guidance for 2025, expecting EBITDA to grow between 1518% on constant perimeter. And four, our EUR 1,500,000,000.0 disposals target before 2025 is perfectly on track with our expectation and could even been exceeded given the EUR 1,000,000,000 advance negotiations ongoing now. So thank you for your attention, and we are now available with Jean Marc to answer the question you may have.

Conference Moderator: Thank We’ll take our first question from Flavian Boedermann of Bernstein. Your line is open. Please go ahead.

Flavian Boedermann, Analyst, Bernstein: Good morning, gentlemen. I have a question on behalf of Alexander Patek. He’d like to have a little bit more color on the disposal you mentioned in the press release. Is it only one asset, multiple assets in one country, in multiple countries? Can we more detail please if it’s possible?

Laurent Guillaume, CEO, EMAI: On disposals, we have multiple negotiations ongoing at the same time and multiple in advanced negotiations. It’s in different categories of assets, both real estate, small size, the big size and operations. I understand that it may seem a little bit vague because but it is multiple operations ongoing at the same time, that’s why we are confident even if we are in advanced negotiation, but that does not mean that means at the same time, we have the choice and we will do the operation that seems to us attractive for the shareholders.

Flavian Boedermann, Analyst, Bernstein: Okay. And I guess there is a mix between OpCo and PropCo disposal as well.

Laurent Guillaume, CEO, EMAI: Yes, exactly. Which is the reason why we are confident because I would say when we are in one single negotiation where you never know really if you have 100% chance to conclude. If you are in multiple negotiations at the same time well advanced, you may have a that everything failing is quite low and some confidence to achieve our target. Okay, great. Thank you.

Conference Moderator: Thank you. We’ll now move on to our next question from Constantin Gomenica of KAYUS Capital. Congratulations

Constantin Gomenica, Analyst, KAYUS Capital: on the results. Two sets of questions, if I may. One on staff costs, you mentioned that you have certain measures that are being planned or implemented. So could you please perhaps give us a little bit more color as to what your ambition is for the second half and perhaps 2026 when it comes to staff cost levels? And secondly, on CapEx, could you just I know you have it in the various buckets of numbers you’ve disclosed, but could you just lay out what the year to date CapEx spend is, maintenance plus growth?

And what the expectation is for the second half, please?

Laurent Guillaume, CEO, EMAI: Yes. I would take the first one. On staff cost, clearly, we have now a better grip on this cost of targets to continue to reduce the staff cost rate. Obviously, this is a progressive trend because it means some reorganization house by house. It means some evolution of the way we work in each house.

So we cannot I mean, it’s a progressive evolution, and it will go throughout the next years. I understand that I’m not giving you a guidance right there because I am the staff cost is so important in our total cost. If I give you a guidance on that, I give you guidance on the EBITDA, which I have not given for the years growing 26%. This combination with occupancy rating further occupancy rate and price increases in the second half and a good grip on cost lead us to be confident for our guidance on the full year 2025. But this is a long term trend.

This will lead to results in 2025, but also in 2026 and 2027 because we know we have some room for improvement there. Jean Marc, on the CapEx?

Jean Marc Bossier, CFO/Deputy CEO, EMAI: Good morning, Constantin. On the CapEx, we have not changed our mind since the beginning of the year. So we will be investing this year approximately EUR 300,000,000, which can be basically broken down into two parts. First, maintenance and IT, which are badly needed because we need to modernize our IT systems for MACE and maintain in good conditions our properties. That’s roughly EUR 200,000,000 and EUR 100,000,000 will be dedicated to development of new business.

So that’s the order of magnitude, and we haven’t changed our mind with Laurent. This is what we are willing to invest for 2023.

Constantin Gomenica, Analyst, KAYUS Capital: Understood. Thank you. And a follow-up question, if I may, different line. So on the pricing, your competitor Clarion yesterday mentioned that in particular in Germany, the way pricing pass through worked for this year, a lot of it is going to be heavily skewed towards the second half. Are you observing a similar dynamic in your business?

Laurent Guillaume, CEO, EMAI: In Germany, had a good momentum in H1 already in the pricing evolution, which really is leading to a nice improvement of our German operations. At the same time, for our German operations, we also work strongly on cost, So that’s what’s driving our margin up. But I don’t see a difference a significant difference between H1 and H2 in pricing. Our prices have went up already quite well in the first half.

Constantin Gomenica, Analyst, KAYUS Capital: Understood. Thank you very much.

Conference Moderator: Thank you. We have no further questions in queue currently. Heading it over to the room for written questions. Thank you.

Laurent Guillaume, CEO, EMAI: Yeah. We have we have a question from Guillaume Lepe. Thanks for I the question first and I will answer. Thanks for the call. Could you provide some color on the French nursing home dynamic looking forward assumption regarding occupancy and its fundings?

Thank you. Concerning the dynamic, we continue to see in July a good dynamic on occupancy rates. So you have seen in the slide presented by Jean Marc that in the second half or in the 2025, are progressing well compared to last year and the dynamic and the spread between this year and last year has further increased in Q2 compared to Q1. For sure, the comparison basis is becoming a little bit tougher in Q3, but compared to last year. But nevertheless, the dynamic in the first part, I mean, in July remains quite strong and we hope to be able to continue to improve our occupancy rate.

This will be something that we will confirm in obviously in October. But the dynamic remains quite strong. I think the changes that we’ve made during last year and beginning of this year in term of marketing, but also the change of the brand last year in March and all the segmentations that we’ve put in place, all of us to have at the same time, good pricing evolution in the housing part of the sector of our sales, but also at the same time, good improvement in occupancy rate, knowing that our potential improvement in occupancy rate, are way behind the market standards, I would say. So our potential for improvement remains quite high and quite strong. We have a second question from Susana Swebe concerning the remaining operating disposal non cash in yet.

Can you please confirm that the SPA was signed and now you are only expecting regulatory approval for the transaction to close? Do you expect to receive regulatory approval by end twenty twenty five? Thank you. Jean Marc?

Jean Marc Bossier, CFO/Deputy CEO, EMAI: Yes. When we account for transaction in our 1.15, it means that all of that is under SPA. We wouldn’t dare to include that in our counter if we had no SPA signed. So everything has been signed under SPA, sometimes with effectively a condition precedent like regulatory approval, but all of that is signed. Do we expect to cash in all of it or most of it by the 2025?

The answer is yes. And I just remind you that our disposal program of €1.5 shall be considered as being cashed in during the period, I mean between the 07/01/2022 and the December 2025. So yes, it is everything under SPA and most of it, if not all of it, will be cashed in before year

Conference Moderator: Once again, as a final reminder, if you would like to ask a question via the audio, press star one on your telephone keypad. We’ll pause for further moment. Thank you.

Laurent Guillaume, CEO, EMAI: No. No further question? Maybe one more.

Conference Moderator: There are no further questions in queue.

Laurent Guillaume, CEO, EMAI: Okay. If there are no further questions, I would like to conclude this call. So to remind you and summarize a little bit the key elements of this presentation. That was, is there another question? Well, just last minute question.

Irene, could you please give a little bit more color on the cleaning business? In particular, are you seeing any drag in pricing from the SME pricing reform? Are you expecting any catch up in H2? Well, the pricing of SMA reform in France is indeed quite low in 2025. We had we from the government, we received a pricing evolution of 0.5% for the full year, which is clearly below inflation, especially if you take into account that there are special adjustments, which means in the reality much more flattish price on comparable basis.

So clearly, this is waiting on our top line and bottom line in the first half of the year. Things that we have compensated by cost reduction in the first half. And I’m not expecting any significant trend in the second half of the year because the prices are fixed and we continue to work on our cost to be sure that we continue to improve our profitability in the clinics in France as it is the case in the first half compared to the first half last year. So no huge impact, I would say, a small impact on the fact that we don’t have price that are sufficient, and this is a discussion that we have constantly with the government. But we are compensating it and a little bit more by cost reduction.

So as it was the last question, last minute last question, just wanted to remind you the main points of this presentation. Good trend on top line, driven by occupancy rate and recovery and positive price effect. This is leading, thanks to a good grip on our cost to a strong improvement on our EBITDA, almost 20% and EBITDA, almost 80%. We expect this trend to continue. And though we reiterate our guidance for 2025, so we should continue to expect an EBITDA growth between 1518% at constant perimeter.

And lastly, our disposal strategy is well on track to reach and even exceed our 1.5 target by the 2025, given the fact that we have many different negotiation ongoing. So thanks a lot for your time. Thanks a lot for your attention. And Jean Marc and myself, we thank you really for being with us today. Thank you.

Conference Moderator: Thank you. Ladies and gentlemen, this concludes the conference call. Thank you all for your participation. You may now disconnect.

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