Emeis falls on EBITDAR outlook downgrade
** Shares in Emeis EMEIS.PA fall 9.6% after the French care home group revised its EBITDAR growth downwards
** "The profit warning reveals a harder operational recovery in its French activities," says analyst Yi Zhong, adding the Nursing homes unit is most vulnerable
** The company now sees 2024 EBITDAR growth range of 0-5%, equalling between €700m and €730m, vs €800m to €835m seen previously
** "The breakeven occupancy rate in French nursing homes is likely to be close to 89% nowadays, marginally higher than pre-scandal and significantly higher than the current figure of 83.1% in Q2," says Zhong
** "The industry-wide difficulties in hiring and retaining staff under long-term contracts are not helping with the profitability recovery, and neither is salary inflation." Zhong adds
** Including today's fall, stock has dropped by 27.02% YTD
Reporting by Dimitri Rhodes
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