Lenzerheide Bergbahnen: Outstanding Result Despite The Influence Of Covid 19 Pandemic

Lenzerheide Bergbahnen AG (LBB AG) closes the 2021/22 financial year with a record profit of CHF 2.25 million despite the many uncertainties caused by the Covid 19 pandemic. The Arosa Lenzerheide ski area also recorded a higher number of guests than ever before when it came to first-time entries in winter, at 1.4 million. After a lengthy consolidation phase, LBB AG is now back on the investment course. 

According to CEO Thomas Küng, the second financial year under the influence of the dynamic development of the pandemic again required a high level of flexibility and short-term planning. The financial year was characterized by constantly changing (travel) restrictions, the corresponding new customer behavior, but also challenges in terms of protecting employees and maintaining operations as a result of many quarantine and isolation orders. "A special thank you goes to our employees, who showed a lot of flexibility and did additional work, especially last winter," emphasizes Thomas Küng.

Thanks to pragmatic, implementable protection regulations for the mountain railway industry, the renewed high demand for holidays and leisure activities in Switzerland and the good weather conditions during the 2021/22 winter season, LBB AG is presenting an outstanding business result despite all the uncertainties. In the 2021/22 financial year, total sales increased by 18.4% year-on-year to CHF 37.3 million (previous year: CHF 31.5 million). The EBITDA increased by 46.7% to CHF 13.9 million (previous year: CHF 9.5 million). After deducting depreciation, the result is a profit of CHF 2,250,733 (previous year: CHF -53,761) and thus the best result since the merger of the mountain railway companies in Lenzerheide in 2005.

With more than 1.4 million first-time entries in winter 2021/22, there were more guests in the Arosa Lenzerheide ski area than ever since the opening of the ski area connection in winter 2013/14. The continuing positive development of the summer business is also pleasing for Thomas Küng. Although the number of guests is slightly below the exceptional summer of 2020 at 206,840 due to the mixed weather conditions in summer 2021, it is still well above the 5-year average (176,313 guests). "How the pleasing trend is to be evaluated in the medium to long term will only become apparent in the current financial year, hopefully without the influence of the pandemic," says Thomas Küng.

Back on investment course

Due to the good result, LBB AG was able to repay more than CHF 14 million in interest-bearing debt in the 2021/22 financial year. As a result, the debt factor fell again significantly. According to Felix Frei, Chairman of the Board of Directors, LBB AG is once again in a position to invest in the range and products. «After years of financial consolidation, which primarily served to reduce debt, we are back on very solid foundations. Now we can look ahead again and invest in the long term," stresses Felix Frei. “It is now a matter of prioritizing the full pipeline of strategically important projects and implementing them step by step. This includes, among other things, the further development and completion of the ski area, water management and snow-making facilities, hiking and biking trails,

General Assembly on September 30, 2022

The 17th General Assembly of LBB AG will take place on Friday, September 30, 2022, in the multi-purpose hall at the Lenzerheide school building. The instructions for exercising voting rights will be sent to shareholders in writing at the beginning of September 2022 with the invitation.