(Reuters) -French nursing care provider Orpea said on Monday it expects full-year core earnings of around 710 million euros ($760 million), close to the lower end of its forecast range from earlier this year.
"The negative impact of the weaker-than-projected operating performance is largely offset by precautionary measures implemented such as reduced or postponed capital expenditure, and by the receipt of proceeds from asset disposals," the company said in a statement.
Orpea last month said it was targeting full-year earnings before interest, tax, depreciation, amortisation and rent costs (EBITDAR) at the lower end of the 705 million to 750 million euros range announced in July.
The group posted third-quarter revenue of 1.31 billion euros, up 10.2% organically, with an average occupancy rate of 83.8%, up 1.8 percentage points from last year.
Orpea said momentum was positive both internationally and in the French hospitals segment. It was also helped by price increases, particularly in Germany, and from the contribution of facilities opened over the previous 12 months.
The company said it expects full-year revenue of around 5.2 billion euros.
It also said it sees EBITDAR at around 891 million euros in 2024 and around 1.2 billion euros in 2026.
The group has been in turmoil since the start of 2022, when allegations of mistreatment in its French care homes sent shockwaves through the nation. In July, it won court approval for an accelerated safeguard plan to restructure its debt.
Orpea said the plan implementation is on schedule and it expects its completion in the coming weeks.
($1 = 0.9315 euros)