Orpea's 2021 net profit falls 60%

Orpea, a private group and manager of Ehpad, in turmoil since January's publication of "Les Fossoyeurs", announced Friday, May 13 that it had reached an agreement with its banks in order to secure its financing, despite the uncertainty weighing on the company after a nearly 60% drop in annual net profit.

Orpea's 2021 net profit falls 60%

Orpea, a private group and manager of Ehpad, in turmoil since January's publication of "Les Fossoyeurs", announced Friday, May 13 that it had reached an agreement with its banks in order to secure its financing, despite the uncertainty weighing on the company after a nearly 60% drop in annual net profit.

The group stated in a press release that the agreement was part of an "amiable conciliation procedure" to avoid difficulties.

Orpea anticipates that it will be subject to "exceptional charges" in the next year for its management of the crisis. Inflation, which has an impact on "energy costs" and "wages in certain countries", will also affect Orpea's profitability.

Although the group claims it is confident in the growth momentum of its 2022 turnover, it has not released any numerical forecasts. Sales increased by 9% to 1.12 Billion Euros in the first quarter.

Its net profit dropped by 59.3% last year compared to 2020 to 65.2 millions euros. This was due to a provision for 83 million euros "for risk and charges relating risks estimated for 2017-2021 after the administrative investigations" which the group was the subject to. It plans to not pay a dividend in this situation.

Since Victor Castanet's investigative novel "Les Fossoyeurs" was published at the beginning of January, the group has come under fire. Independent journalist, Castanet, denounced in particular mistreatment of residents as well as the misuse of public money.

The government commissioned a report to highlight serious problems in April. The State filed a complaint to demand the return of any public grants that were allegedly used for other purposes.

The group has been under investigation by Nanterre's judicial authorities since April. It is suspected of financial crimes or institutional mistreatment.

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