Emeis: 2024 Guidance Beaten

Emeis, the French healthcare and care services provider, has beaten its 2024 guidance, thanks to a strong performance in the first nine months of the year. The company reported a solid growth of +8.3% in revenue, with an average occupancy rate of 85.6%, up +2.6 points year-on-year. This positive trend was driven by an increase in occupancy rates for the company's facilities, which rose by an average of +2.6 points, and significant price increases across all the Group's core activities and geographies.

The company's strategic disposal program has also contributed to its financial recovery and debt reduction. By the end of September 2024, emeis had secured almost €700 million in disposals since mid-2022, with €493 million already received and the remainder expected by the end of 2025. This progress is part of the company's goal to complete €1.5 billion in disposals of operating and real estate assets between mid-2022 and the end of 2025, aiming to continue reducing its debt.

emeis' strong performance in 2024 is a testament to the company's transformation plan, which includes the rollout of its new brand and a focus on employee health and safety. The company has seen improvements in employee health and safety, with the frequency rate of work-related accidents decreasing by 28% compared to 2023, and the staff turnover rate down 8% compared to 2023. These improvements indicate a more stable and secure work environment, which can lead to better employee morale and productivity.

The company's transformation plan has also positively impacted the quality of care and services provided by emeis. The Group's rate of external certification increased by 19 points compared to 2023, and the satisfaction rate for catering in nursing homes in France has climbed to almost 90%. The overall satisfaction rate in hospitals stands at over 95% for inpatient services and almost 99% for outpatient services. These improvements suggest that the transformation plan is helping emeis to better meet the needs of its patients and residents, leading to increased occupancy rates and improved financial performance.

In conclusion, emeis' strong performance in 2024, including beating its guidance and improving its financial health, is a result of the company's strategic disposal program, operational improvements, and successful transformation plan. The company's focus on employee health and safety, quality of care, and better segmentation of its offerings has contributed to its positive results. As emeis continues to execute its transformation plan and accelerate its disposal program, investors can expect the company to maintain its strong performance and continue to meet the major societal challenges of mental and physical health and old age.