- Efficient vaccination campaign, 84% of nursing home
residents vaccinated across Europe
- Protection from the vaccination demonstrated with less than
0.3% of residents Covid+, with the majority asymptomatic
- Dynamic growth with 8.1% of revenue growth, of which 1.4%
organic
- Strong contribution from acquisitions following successful
integrations
- Reinforcement of Korian’s commitment to innovative
qualifying training paths, with the launch of Passerelles programme
in France
- Growth perspective confirmed: more than 9% growth in 2021,
in line with the 2022 target on revenue of over 4.5 billion
euros
Regulatory News:
Korian (Paris:KORI) the leading European care and support
services group for the elderly and fragile, gives an update on the
Covid-19 health crisis and announces its 1st quarter revenue for
2021.
Update on Covid-19 health crisis and vaccination
campaign
Over the period, Korian has maintained a high level of vigilance
and stringent Covid-19 procedures. Having faced the second wave
across Europe, nursing homes are now protected from Covid
infections, as demonstrated with less than 0.3% of the nursing home
residents still with cases, which are almost all asymptomatic.
The vaccination campaign has now enabled with more than 84% of
residents and more than 59% of employees vaccinated, with an
objective to finalise the campaign by end of May in all the
countries where the Group is present and will be extended to
residents who were not able to be vaccinated during the first
campaign due to a Covid-19 infection over the last 3 months. A
vaccination strategy is in place for all new residents and will
also contribute to the vaccination effort for the local population
in agreement with local health authorities.
1st quarter 2021 revenue
In the first quarter of 2021, Korian generated revenue of
€1,018.2 million, up 8.1% compared to the same period last year,
which was only marginally affected by the pandemic.
The dynamic growth is mainly driven by the good performance of
the acquisitions the group completed in 2020 and early 2021, with a
strong performance from Inicea, specialised in mental health, since
its integration in December 2020, but also the other acquisitions
in medical activities in Italy and France, as well as the expansion
in the Netherlands and the entry in the United Kingdom through the
acquisition of Berkley Care Group.
The organic growth of 1.4% reflects the resilient and
diversified business model of the Group. This growth is driven by
the nursing homes activities in Germany benefitting from the
repositioning and the increase in capacity over the last two years
as well as a favourable care mix evolution. The organic growth also
reflects the continued growth of medical care services growing c.
8% organically in Italy and France, following the increased
specialisation and outpatient capacity.
Q1 revenue by geography
In France, including Spain and UK, revenue reached €510.8
million1, up 10.8% compared to the same period in 2020 driven
notably by the acquisitions of 5 Santé (February 2020) and Inicea
(December 2020). The organic growth of 2.8% reflects the dynamic
activity in medical care, following the ongoing transformation of
the network and the increase in outpatient capabilities.
In Germany, revenue totalled €259.3 million, up 5.8%, driven by
a solid organic growth of 3.5% despite the second, more difficult,
wave of the pandemic in Germany and a contribution from recent
acquisitions to extend the Group’s reach in the Lower Saxony and
North Rhine-Westphalia regions and homecare activities.
In the Benelux region2, revenue amounted to €143.4 million up
3.1% on last year with an organic growth of 0.3%. The growth is
driven by development of the platform in the Netherlands that now
represents around 1,100 beds.
In Italy, revenue was up 8.6% at €104.7 million, driven by the
acquisitions of clinics completed in 2020, notably in Rome and the
Puglia region. The organic decrease of -8.7% reflects the low level
of occupation in the nursing homes mainly located in the north of
Italy and severely affected by the pandemic and restrictions on new
entries lasting until recently. New entries are now facilitated
following the completed vaccination campaign.
Korian’s mobilisation for employment and qualifying
training
Korian continues to innovate as an employer and recruiter in its
geographies. Notably in France, Korian has launched with the
support of the authorities and stakeholders a “Passerelles”
programme, part of the “Collective Transitions” programme, deployed
by the public authorities since January 15, 2021 allowing employees
from other sectors to retrain through paid, qualifying training
over 14 months. Under this programme, Korian will offer to
Derichebourg Multiservices employees to be retrained as carers.
Korian intends to enlarge this programme to other companies to
reach 200 participants in 2021. This initiative is a part of
Korian’s overall strategy to increase the attractiveness of the
care profession and to diversify recruitment sources in a context
of strong growth. The Group aims to have 10% of its staff in
qualifying training paths by 2023, compared to 4% in 2019 and to
cover 50% of its recruitment needs for carers in this way.
Following the launch of a dedicated “care school” in France
(Centre de Formation d’Apprentis des métiers du Soin Korian) last
year and the creation of two virtual learning hubs in Munich and
Lyon (Académies des métiers du Soin), Korian Italy has launched a
Caregivers School with Mylia, a subsidiary of the Adecco Group
dedicated to training and consultancy. This Caregivers School will
provide accredited theoretical and practical training for
caregivers in the Lombardy region.
Outlook
The success of the vaccination campaigns across Europe was a
necessary step towards the normalisation of the level of activity
in nursing homes. Therefore, despite the restrictions and
procedures still in place in most countries, the Group notes since
mid-March an overall positive dynamic across its geographies, and
particularly in Germany and Italy. With the mobilisation of its
teams and the investments made by the Group in its human resource
policies, the network is well positioned to respond to the
important needs to care for the elderly and those with chronic
illness and accompany the rebound in activities.
The first quarter of 2021 has also been marked by the
acquisition of Ita Mental Health in Spain that is expected to close
in the coming weeks.
Korian announced today the acquisition of Intensivpflegedienst
Lebenswert GmbH (IPDL), a leading German intensive care company
based in southern Germany (Baden-Württemberg and Bavaria).
This acquisition is fully in line with the Group's ambulatory
care strategy and the deployment of specialized medical care in its
geographies. For 2021, revenue is expected at c.10 million euros,
with solid growth prospects.
This acquisition supports the Group’s ambulatory care strategy
in Germany and the increase of specialised medical care that we are
deploying across its geographies.
Based on these elements, the Group expects revenue for 2021 to
grow by more than 9%, in line with the 2022 target on revenue of
over 4.5 billion euros.
Next events:
27 May 2021 – Annual General Meeting
16 June 2021 – Capital Markets Day
About Korian
Korian, the leading European care services group for elderly and
fragile people. www.korian.com
Korian has been listed on Euronext Paris
Section A since November 2006 and is included in the following
indices: SBF 120, CAC Health Care, CAC Mid 60, CAC Mid & Small
and MSCI Global Small Cap
Euronext ticker: KORI - ISIN: FR0010386334 –
Reuters: KORI.PA – Bloomberg: KORI.FP
1st quarter revenue by geography
€m
Revenue
Reported growth
Organic growth
Geography
Q1 2021
Q1 2020
Variation %
France3
510.8
460.9
10.8%
2.8%
Germany
259.3
245.2
5.8%
3.5%
Benelux4
143.4
139.1
3.1%
0.3%
Italy
104.7
96.4
8.6%
(8.7%)
Total
1,018.2
941.6
8.1%
1.4%
1 Including €7.8 million of revenue from Spain and €1.8 million
from UK
2 Including €18.2 million of revenue from The Netherlands
3 Including €7.8m from Spain in Q1 2021 (vs €8.6m in Q1 2020)
and €1.8m from UK in Q1 2021
4 Including €125.2m from Belgium and €18.2m from The Netherlands
(Q1 2021) vs €129.0m in Belgium and €10.1m from The Netherlands (Q1
2020)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210419005617/en/
INVESTOR RELATIONS Sarah Mingham VP Investor Relations
& Financing sarah.mingham@korian.com Tel:
+33 (0)1 55 37 53 55
Carole Alexandre Deputy Head of Investor Relations
carole.alexandre@korian.com Tel: +33 (0)7 64
65 22 44
MEDIA
Jean-Marc Plantade Head of Press Relations
jean-marc.plantade@korian.fr Tel: +33 (0)7 62
90 32 58
Cyrille Lachèvre Deputy Head of Press Relations
cyrille.lachevre@korian.fr Tel: +33 (0)7 61
53 54 86
Marjorie Castoriadis Head of Media Relations
marjorie.castoriadis@korian.fr Tel: +33 (0)7
63 59 88 81