By Giulia Petroni
Shares in Orpea dived on Thursday after the French care-home group adjusted its expectations for the full year as first-half results were hit by cost increases.
At 0739 GMT, the stock traded 14% lower at EUR1.27 a share.
Earnings before interest, taxes, depreciation, amortization and rent costs, Ebitdar, are now expected at the lower end of the previously set range of 705 million euros to 750 million euros ($748.6 million-$796.4 million), Orpea said.
In the first half the year, Ebitdar fell 21% to EUR336 million, mainly due to an increase in payroll costs and other expenses such as energy procurement, food and medical products. Net loss widened to EUR371 million from EUR269 million.
“The increase in our costs in an inflationary environment have not been fully offset by price rises, leading to a reduction in our operating margin in the first half,” Orpea said.
Write to Giulia Petroni at [email protected]
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