The ESG crisis weighed on Orpea’s FY21 results and its occupancy rate in France. The group has signed a sort of “emergency” financing at nearly-doubled costs, showing a worrying liquidity outlook. The scandal is expected to seriously affect the group’s earnings outlook and lead to a structural change in the industry’s business model, as well as a profound industrial reform. The positive effect of the management/board renewal should be seen rather in the longer term. We remain pessimistic.
13 May 2022
Initial thoughts: FY21 results and Q1 22 revenue, scandal aftermath
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Initial thoughts: FY21 results and Q1 22 revenue, scandal aftermath
The ESG crisis weighed on Orpea’s FY21 results and its occupancy rate in France. The group has signed a sort of “emergency” financing at nearly-doubled costs, showing a worrying liquidity outlook. The scandal is expected to seriously affect the group’s earnings outlook and lead to a structural change in the industry’s business model, as well as a profound industrial reform. The positive effect of the management/board renewal should be seen rather in the longer term. We remain pessimistic.