Zermatt Bergbahnen: A Business Year Marked By Uncertainties
Zermatt Bergbahnen AG invited to the 20th Annual General Meeting on Trockener Steg. After last year's AGM without the presence of shareholders due to the COVID-19 pandemic, the participants were welcomed on site this year in compliance with the applicable COVID-19 protective measures. In the 2020/2021 financial year (June 1, 2020 - May 31, 2021), Zermatt Bergbahnen AG had to deal with subdued summer business and a winter season marked by uncertainties. This resulted in sales of CHF 55.2 million (minus 15% compared to 19/20), an EBITDA of 19.5 million (35.3% of sales), a cash flow of 15.9 million (28.8% of sales) and a company loss of just under CHF 3 million. Long-term important investments were nevertheless made.
Zermatt Bergbahnen AG started the 2020/2021 financial year with great uncertainty. The development of the COVID-19 pandemic and the challenging economic conditions based on it indicated that the financial year was difficult. Summer operations were able to begin on June 8, 2020 after the federal government revoked the cessation of operations. The summer business 2020, which was defined as a strategic growth driver for the turnover of Zermatt Bergbahnen AG, was reduced almost exclusively to domestic guests. The feeling of having had a successful summer season with “new” domestic guests was refuted by the number of guests and the related sales. Compared to the previous year, a decrease of 21% in summer sales was registered.
At the beginning of the 2020/2021 financial year, it was assumed that the European travel market would ease up slowly towards the winter of 2020/2021. The cessation of operations of Cervino SpA on October 26, 2021, due to the COVID-19 measures imposed by the Italian government, showed a contrary development. It was no longer possible for Cervino SpA to start operating until the end of the 2020/2021 financial year, which means that guests only had access to the Zermatt website for the entire winter. Due to the negative COVID-19 development in autumn 2020, winter sports in most Alpine countries were made impossible by their state authorities or only allowed to a very limited extent. The lack of guests from the international markets was also very noticeable in winter.
Despite the challenging 2020/2021 financial year, Zermatt Bergbahnen AG is investing in the future - to an extent that is adapted to the general conditions. The generation project Matterhorn Alpine Crossing has pioneered the way and is about to complete the vision with the construction of the second 3S cable car “Matterhorn Glacier Ride ll” from Testa Grigia to the Klein Matterhorn. Other projects such as the Kumme orbit including snow-making were implemented in accordance with the investment plan in the 2020/2021 financial year. A total of around CHF 49 million was invested in the past financial year.
A look at the annual financial statements shows that operating income fell from 64.9 million in the previous year to 55.2 million, which corresponds to a minus of almost CHF 10 million (15%). The EBITDA of 19.5 million (35.3% of sales) and the cash flow of 15.9 million (28.8% of sales) are top values in the industry and correspond to the benchmark of Seilbahnen Schweiz, which is based on normal framework conditions. The year-on-year decline in EBITDA is around CHF 11.7 million (37.6%), while that in cash flow is CHF 11.5 million (41.5%). Depreciation fell to CHF 19.2 million (minus 26.1%) and the company loss is around CHF 3 million.
The net profit will be carried forward to the new account and the dividend for the 2020/2021 financial year will be suspended. The general assembly re-elected the previous board members Franz Julen, Hermann Biner, Jean-Michel Cina and Patrick Z'Brun. Romy Biner-Hauser was newly elected to the Board of Directors as the representative of the Zermatt community and Sämi Perren as the representative of the Zermatt civic community. Franz Julen was re-elected as Chairman of the Board of Directors.
Markus Hasler, CEO of Zermatt Bergbahnen AG, said of the 2020/2021 financial year: “The almost complete absence of international guests (normal year> 50%) could not be offset by a significant increase in the number of Swiss guests. This led to a deterioration in the profit situation with almost identical operating costs. Despite the unsatisfactory result for Zermatt Bergbahnen AG, the key financial figures are still among the best in the industry ».
“The effects of the corona pandemic followed us throughout the 2020/21 financial year and left deep marks on the balance sheet and income statement. Nevertheless, the board of directors and management made important, even groundbreaking, decisions. We are convinced that the investments made despite the Corona uncertainties will prove to be right not only for Zermatt Bergbahnen AG but also for the entire destination in the medium and long term. " the President, Franz Julen, looks to the future with optimism.
