First-half 2025 results - Group’s financial position strengthened six months ahead of schedule - Guidance confirmed

Successful completion of the plan to strengthen the Group’s financial position

• €1.5-billion plan to strengthen the financial position in 2024 and 2025 completed: €1 billion of disposals achieved, with an average multi-ple of around 14x 2024 EBITDA for the programme as a whole.
• Access to funding back to normal: amendment and extension of the syndicated loan, arrangement of a real-estate credit facility due to expire in 2029 in a total amount of €775 million, and the successful issue of €400 million of unsecured bonds in June, over 3x oversub-scribed.
• €212 million reduction in net debt (excluding IFRS 16 and IAS 17) compared with 30 June 2024, resulting in a reduction in the Wholeco leverage ratio2 to 5.6x proforma (adjusted for disposals for which proceeds have been received to date), as opposed to 5.8x proforma (adjusted for capital increases) at 30 June 2024.
• RCF drawdown of €491 million to be repaid in full on 30 July 2025.

Operational performance

• Revenue in the first half of 2025 amounted to €2,656 million, up 4.8% on an organic basis, supported by all business lines and regions and in line with the full-year target.
• EBITDAR pre-IFRS 16, was €546m, stable (+0.8%) compared with the first half of 2024 on a proforma basis (adjusted for disposals) and ex-cluding property development activities.
• EBITDA pre-IFRS 16 was €263 million, down 4.1% compared with the first half of 2024 on a proforma basis (adjusted for disposals) and ex-cluding property development activities. The decline arose from the way in which France’s new pricing structure for medical, post-acute and rehabilitation activities was introduced and the operational adjustments needed to offset its temporary negative effects.
• Operating cash flow1 pre-IFRS 16 was €133 million as opposed to €169 million in the first half of 2024; adjusted for delayed payments from healthcare insurance bodies in France in the first half, it would have been stable in value terms.
     

Earnings

• In terms of net result, Group share pre-IFRS 16, the Group made a loss of €47 million as opposed to a loss of €28 million in the first half of 2024. In the first half of 2025, the figure included costs associated with disposals and refocusing operations of the business portfolio, but not the positive accounting impacts.
• In terms of net profit post-IFRS 16, the Group made a loss of €59 million versus a loss of €52 million in the first half of 2024.
   

2025 guidance

• Revenue is expected to increase by around 5% on an organic basis in 2025, and together with the Group’s continued discipline on operat-ing costs, this supports a proforma pre-IFRS 16 EBITDA growth target of 6-9%.
• Net debt is expected to fall further in 2025, with the Wholeco leverage ratio expected to be below 5.5x at the end of 2025.

In the first half of 2025, we completed the plan to strengthen our financial position six months ahead of schedule. We carried out disposals on good terms, obtaining high valuation multiples. Through that plan, our Group has significantly strengthened its balance sheet and shareholder structure, and regained nor-mal access to the debt market, as shown by our successful bond issue in June. These various transactions mean that we can repay our revolving credit facility in full. 

Since the second quarter, our Long-Term Care business saw good momentum in all countries, and the occupancy rate was over 91% at the end of July.

Despite the good business momentum of our healthcare activities in all countries, in France we were penalised by the way in which the government’s new framework for financing medical, post-acute and rehabilitation activities was introduced. This resulted in implementation delays and “pricing discrepan-cies” that adversely affected our financial performance in the first half. 

In the second half of the year, we will benefit from the corrective measures we have implemented as part of the reform of medical, post-acute and rehabilitation activities, through active management of the case mix and the adjustment of care organisations. The Long-Term Care business will benefit from the posi-tive momentum in occupancy rates and the full impact of tariff increases in Germany. We are also de-ploying an adjustment plan designed to align our central organisation with our post-disposal scope and leverage the benefits of the digital transformation that we began more than a year ago.

With the quality of our geographical positions and business activities, and above all with the outstanding commitment of our people, whom I would like to commend, we will continue our transformation in order to address new healthcare challenges and support the patients and carers who place their trust in us.