PARIS--(BUSINESS WIRE)--Regulatory News:
Korian (Paris:KORI), the leading European care and support services group for fragile people, today announces its 1st quarter revenue for 2023.
-
+11.8% of reported growth, with revenue of €1,218.2m in the first quarter of 2023, driven by a strong organic growth of 8.8%:
- Increase in occupancy rate in Long-term care activity (+1.7 pt since Q1 2022)
- A high activity level in Healthcare, benefitting from increased ambulatory activity
- Greenfield ramp up, notably in the Netherlands and across Community Care
- Significant increase in tariffs
- Extension of our healthcare footprint and services in Spain and Italy
- Acquisition in January 2023 of Grupo 5, in the Spanish mental health sector, with c.3,000 employees, set to generate an annual revenue of c.€120m in 2023
- Integration of medical platforms in Italy, contributing to half of growth in Italy
- Roll out of Asset smart strategy on track
- Entry into exclusive negotiations for a real estate partnership with Covéa, Crédit Agricole Assurances, Malakoff Humanis, for a portfolio of assets with a value of c.€500m, representing a minority equity investment of c. € 130 million
- c. € 85 million of additional real estate debt secured over the quarter
Based on the first quarter revenue, the Group confirms its 2023 guidance of more than 8% organic revenue growth, with EBITDAR and EBITDA stable in amount, and a financial leverage below 3.5x.
The Group confirms its decision to submit to its next General Meeting of 15th June 2023 its transformation into a purpose-led company, as detailed in a dedicated press release.
Q1 2023 Revenue
Korian delivered revenue of € 1,218 million in the first quarter of 2023, growing by 11.8%. Reported growth was supported by the acquisition of Grupo 5, but affected by the disposals last year notably in Germany. All regions showed dynamic organic growth:
- France revenue reached € 534.8 million, with a reported growth of 5.7% and an organic growth of 4.5%, driven by tariff adjustments and by dynamic development of Community Care activity.
- Germany achieved € 282.6 million of revenue, with 12.1% organic growth supported by tariff increase following the pass-through of higher salary costs (from September 2022). Reported growth of 4.9% was affected by disposal or closure of facilities during 2022.
- Benelux region is particularly dynamic with 18.0% of organic growth reflecting a positive trend on occupancy rates in Belgium and continued ramp-up of new facilities in the Netherlands. Total revenue was € 180.6 million, showing a total growth of 17.9%.
- Italy continued its dynamic growth with 19.0% reported growth reaching € 152.7 million of revenue reflecting recent acquisitions (notably Italian Hospital Group acquired in H1 2022), as well as a strong organic growth of 8.9% driven by full capacity of recent acquisitions and the continued development of outpatient activity.
- In Spain and the United Kingdom, revenue was up 106.9% mainly reflecting the integration in January 2023 of the mental health operator Grupo 5. Solid organic growth of 7.1% is driven by both countries occupancy recovery and ramp-up of recent facilities.
Revenue by geography
Revenue (€m) |
Variation (%) |
|||
1st quarter |
1st quarter |
Reported |
Organic |
|
2023 |
2022 |
Growth |
Growth |
|
France |
534.8 |
506.2 |
5.7% |
4.5% |
Germany |
282.6 |
269.4 |
4.9% |
12.1% |
Benelux* |
180.6 |
153.2 |
17.9% |
18.0% |
Italy |
152.7 |
128.4 |
19.0% |
8.9% |
Spain, United-Kingdom** |
67.4 |
32.6 |
106.9% |
7.1% |
Total |
1,218.2 |
1,089.7 |
11.8% |
8.8% |
* o/w Belgium: €150.0m in Q1 2023 vs €130.5m in Q1 2022, Netherlands: €30.6m in Q1 2023 vs €22.6m in Q1 2022 |
||||
** o/w Spain: €53.6m in Q1 2023 vs €23.9m in Q1 2022, United Kingdom: €13.8m in Q1 2023 vs €8.7m in Q1 2022 |
||||
Revenue by activity
|
Revenue (€m) |
Variation (%) |
||
|
1st quarter |
1st quarter |
Reported |
Organic |
2023 |
2022 |
Growth |
Growth |
|
Long-term care |
758.6 |
697.6 |
8.7% |
8.3% |
Healthcare |
321.9 |
273.2 |
17.8% |
6.2% |
Community Care |
137.8 |
118.9 |
15.9% |
17.7% |
Total |
1,218.2 |
1,089.7 |
11.8% |
8.8% |
About Korian
Korian, the leading European care services group for elderly and fragile people. www.korian.com
Korian has been listed on Euronext Paris Section A since November 2006 and is included in the following indices: SBF 120, CAC Health Care, CAC Mid 60, CAC Mid & Small and MSCI Global Small Cap
Euronext ticker: KORI - ISIN: FR0010386334 – Reuters: KORI.PA – Bloomberg: KORI.FP
