15 July 2022

Top annual result of Arosa Bergbahnen AG

Old News
Skifahren in Arosa Lenzerheide | © Arosa Tourismus, Nina Hardegger-Mattli
Das Hostel Arosa Mountain Lodge ist der ideale Ausgangspunkt für dein Bike Erlebnis. | © Arosa Bergbahnen AG
Skifahren mit der Familie im Tschuggengebiet in Arosa im Winter | © Arosa Bergbahnen AG
Skifahren in Arosa Lenzerheide | © Arosa Tourismus, Nina Hardegger-Mattli
Das Hostel Arosa Mountain Lodge ist der ideale Ausgangspunkt für dein Bike Erlebnis. | © Arosa Bergbahnen AG
Skifahren mit der Familie im Tschuggengebiet in Arosa im Winter | © Arosa Bergbahnen AG

In the 2021/2022 business year, Arosa resort lifts AG impressed with the best result in the company's history, which could not have been expected to this extent under the influence of the SARS-CoV-2 pandemic. After a good summer business in 2021, the excellent external conditions and the pragmatic implementation of the Corona protection measures, combined with a reliable home market, resulted in a jump in sales to CHF 33.034 million. With the reported annual profit of TCHF 1,249, the Board of Directors will propose the payment of a dividend at the Annual General Meeting.

Guest admissions (Skier days) 2019/2020 2020/2021 2021/2022 change to 2019/2020
Arosa Lenzerheide Winter 1'148'000 1'198'000 1'428'000 + 24,4%
Arosa summer (June - October) 155'000 187'000 174'000 + 12,3%


Profit and loss account (in TCHF) per 30.04. 2019/2020 2020/2021 2021/2022 change to 2019/2020
Income 17'359 17'337 20'131 + 13,8%
Mountain gastronomy 6'244 3'743 8'757 + 28,7%
lodging 1'175 634 1'509 + 22,1%
Ancillary income 2'474 2'558 2'637 + 6,2%
Total Operating income 27'252 24'273 33'034 + 17,5%
Cost of goods -2’026 -1'213 -2'243 + 9,7%
Personnel expenses -9'895 -9'302 -10'916 + 9,4%
Material expenses -7’015 -6'891 -7'816 + 10,2%
EBITDA 8'316 6'867 12'058 + 31,0%
Depreciation -6'814 -6'299 -10'007 -
EBIT 1'502 568 2'051 -
Financial expenses -752 --704 -612 -
EBT 750 --130 1'438 -
Income from disposal 756 -3 - -
Outstanding income - 84 1'383 -
Outstanding expenses - ---17 -1'383 -
Tax expense -190 -183 -190 -
Profit/loss for the year 1'316 -244 1'249 -
Cashflow 7'374 5'986 11'256 -

After the pleasing summer figures with 174,000 guests on the mountain, uncertainty, and concern shaped the planning and preparation for the 2021/2022 winter season in the wake of the rising Corona case numbers. Despite uncertainties surrounding the SARS-CoV-2 pandemic, it was an almost perfect business year with ideal external conditions already in the summer months and an ideal change to a snow-sure winter with fantastic snow sports conditions as well as numerous sunny days. The optimal environmental conditions drove the company's overall performance strongly upwards (+23% compared to the 5-year average before Corona). Arosa Lenzerheide started the winter season as early as 13 November 2021 and excellent piste conditions existed in Graubünden's largest connected ski area until the Easter holidays. The sunny days contributed to the splendid winter: 55% of the 140 winter season days were blessed with 4 hours of sunshine or more, in many cases also at the weekend. The month of March stood out with 24 sunny days.

Best result in the company's history
The mountain railway company was able to achieve strong growth in all profitable business areas and keep costs in check. At the end of the financial year on 30 April, EBITDA amounted to TCHF 12,058, the best result in the company's 92-year history. This is a whopping 27% higher than in the last full financial year 2018/2019. Even after extensive additional depreciation, a handsome annual profit of TCHF 1,249 can still be presented to the General Meeting. Lorenzo Schmid, Chairman of the Board of Directors, is very pleased with the result: «The result shows a strong performance in a challenging market environment. The EBITDA ratio of 36.4% is an excellent value for a mountain railway company with its own mountain gastronomy and accommodation operations. The reported cash flow is a pleasing TCHF 11,256 and accounts for 34.1% of turnover. Lorenzo Schmid, Chairman of the Board of Directors since 1993 and an industry expert, knows how to classify this top result: «Several constellations played into our hands and the good experience of the Corona protection measures helped the mountain railway industry to introduce feasible and gentle protection regulations. The 2021/2022 result is an 'outlier' on the upside, our business remains challenging, as we all know from recent developments.» The board of the mountain railway company is looking to reactivate its dividend policy following this outstanding financial year. The last time a dividend payment was made was after the 2018/2019 financial year. With the proposal to the General Meeting for a distribution of CHF 4.00 per share (total TCHF 625), the Board of Directors now wants to consciously send a positive signal that an investment in the company and a participation in a possible next capital increase can also be rewarded with a return.

Repayment of hardship compensation
Arosa resort lifts AG did not have to apply for corona credits during the SARS-CoV-2 pandemic. In June 2021, the company requested hardship compensation to alleviate the significant loss of revenue of CHF 3.5 million in the company-owned catering businesses for the periods from March 2020 to April 2021, which was paid out in autumn 2021 in the amount of TCHF 1,383. According to the requirements of the Covid-19 Act, there is a conditional profit sharing for companies with a turnover of more than CHF 5 million, which now also applies to Arosa resort lifts AG. The company has meanwhile fully repaid the hardship compensation of TCHF 1,383 paid out in the previous year.

Well positioned for the next investment phase
«After last year's investment pause of CHF 3.8 million, the mountain railway company is once again shifting up a gear in terms of performance development on the mountain,»-says Philipp Holenstein, managing director of Arosa Bergbahnen AG, with an outlook on the new 2022/2023 financial year, in which a total of CHF 6.64 million has been earmarked for new projects. «The correction of the terrain with the replacement of the old snow-making system on slope 9a between Carmenna middle station and LAW Mitte for CHF 3.4 makes up the main part. Snow sports enthusiasts will be able to reach the Arosa East area more comfortably and safely on this important transfer piste from the Arosa West area. The construction work is progressing well,» says the mountain railway boss. In mountain gastronomy, Arosa resort lifts are investing in a new terrace with food container at the Brüggerstube for a continuous take-away offer in summer and winter and in improved room acoustics at the 360° panorama restaurant Weisshorngipfel. The obligatory overhauls of the cable car facilities alone cost CHF 700,000, and the replacement of a snow groomer is on the shopping list at CHF 600,000. An important step towards increasing the attractiveness of the Arosa East snow-sport region around Tschuggen was taken when the electorate approved the partial revision of the local planning. Now the conditions have been created in the land use planning to implement the various subprojects in the coming years. Summer business has started in line with expectations, but for understandable reasons not as strongly as in the peak summer of 2020. «In terms of first-time admissions, we are 12% behind the summer of 2021 in the first six weeks. On the other hand, Bear Sanctuary has had a double increase with Sam and Jamila, which is also a cause for celebration,» explains Philipp Holenstein.

Further information on the resort lifts will be available at the general meeting of Arosa Bergbahnen AG. At that time, the board of directors will be re-elected or newly elected for the next three years. The instructions for exercising voting rights will be sent to the shareholders in writing with the invitation at the beginning of September 2022.