Arosa Lift Co: Strong Growth In All Business Areas
Arosa Bergbahnen AG reports their first interim result as of March 31, 2022 for the current financial year 2021/2022. A remarkably successful financial year is emerging, which could not have been expected to such an extent under the influence of the SARS-CoV-2 pandemic. Favored with good atmospheric conditions for technical snowmaking, the numerous sunny days and few stormy days, a reliable home market and appropriate corona protection measures, there were advantageous conditions for an exceptionally good winter in the Arosa Lenzerheide ski area. The strong increase in sales of CHF 4.7 million (+17% compared to the 2018/2019 financial year before Covid) by the end of March is extraordinary.
In the summer of 2021, 174,000 guests visited the mountain railways, slightly fewer than in the record summer of 2020. In the wake of the increasing number of corona cases, uncertainty and concern shaped the planning and preparation for the 2021/2022 winter season. The good experiences with the protective measures last winter helped the mountain railway industry to introduce pragmatic, implementable protective regulations.
On November 13, 2021, Arosa Lenzerheide started the winter season on the Hörnli and Urdenfürggli. After the welcome increase in natural snow at the end of January, the entire range of slopes was made available. The significantly improved capacity utilization with skier days during the week is striking. The provisional guest and sales figures show the following picture up to the end of March 2022: (Column "Change" refers to the 2019/2020 financial year with lockdown on March 14.)
The guests respected the 2G rule in gastro interiors as well as the 2G+ rule, which was used in the KuhBar and was also consistently implemented. In the Mountain Lodge accommodation facility, the targeted focus on revenue management with a stronger presence on online booking platforms is leading to increased demand and additional sales. In addition to the extremely pleasing development, the company also struggled with some turbulence. Due to the increasing number of absences from work in December and January due to the contagious virus variant Omikron with isolation and quarantine regulations, personnel deployment planning was extremely demanding. Many employees had to do additional work to ensure the high quality of the range of services.
Lorenzo Schmid comments on the expected business result as of April 30, 2022: "According to its own forecast, the mountain railway company will achieve record sales of well over CHF 30 million by the end of the financial year on April 30, 2022. In correlation with the stable Cost management, an excellent business result is expected at the EBITDA level.In return, the company will fully repay the hardship payment of CHF 1,382 thousand paid for the CHF 3.5 million decline in sales suffered in the catering establishments for the period March 2020 to April 2021 . When looking at the company as a whole, there is no longer any state support under the title "hardship case".The final results of the annual financial statements with the detailed annual report will be published together with the invitation to the general assembly at the beginning of September 2022.
"The last two financial years will occupy a special place in the 92-year history of the mountain railway company. The constant uncertainties with changing framework conditions, accompanied by an unprecedented flood of information and scarce human resources have demanded a lot from everyone. From a business point of view, we are grateful for this mild course of the pandemic." concludes the Chairman of the Board of Directors.
Outlook for the 2022/2023 financial year
According to Philipp Holenstein, CEO of Arosa Bergbahnen AG, one can look to the future with optimism and courage. "After a breather in investment activity in the past year, performance development on the mountain is picking up speed again. A total of CHF 6.64 million is planned, including the slope/terrain correction with replacement of the snow-making system on the important slope 9a between Carmenna Mitte and LAW Mitte for CHF 3.5 million." In mountain gastronomy, Arosa Bergbahnen is investing in a food container for a take-away offer in summer and winter at the Brüggerstube and in a new terrace floor as well as in the room acoustics of the 360° panorama restaurant Weisshorn summit (total TCHF 350). The mandatory revisions for the railway systems, including the running gear revision for the 1st section LAW, cost TCHF 700, the replacement purchase of a snow groomer cost TCHF 600. "With the partial revision of the Arosa Ost local plan, we are creating the basis at the usage planning level in order to continue on the successful path of qualitative further development and improvement of the snow sports offer in a multi-year stage plan," says the Bergbahnen Managing Director convinced. The next major investment will be in 2026/2027 with the replacement of the Hörnli-Express gondola lift.
The 2022 summer season starts on Saturday, June 11, 2022 with the continuous start of railway operations on the Weisshorn, immediately after the completion of the running gear inspection on the 1st LAW section. Two new bears can then be admired in the Arosa Bear Land at the middle station.
Further information on the 2021/2022 financial year with the final figures will be sent to shareholders and the media in a separate post at the beginning of September 2022. The general assembly will take place on Saturday, September 24, 2022 at 2:30 p.m. with physical meeting in the sports and congress center.
