Arosa Bergbahnen AG: Interim balance sheet for the 2021/2022 financial year

The Arosa Bergbahnen AG informs about a first interim result as of 31 March 2022 for the expiring business year 2021/2022. A remarkably successful business year is emerging, which could not have been expected to this extent under the influence of the SARS-CoV-2 pandemic. Favourable atmospheric conditions for technical snowmaking, numerous sunny days and few stormy days, a reliable home market and appropriate corona protection measures resulted in favourable conditions for an excellent winter in the Arosa Lenzerheide ski area. The strong sales growth of CHF 4.7 million (+17% compared to the 2018/2019 financial year before Covid-19) by the end of March is extraordinary.

In the summer of 2021, 174,000 guests visited the mountain railways, slightly less than in the record summer of 2020. After the rising Corona case numbers, uncertainty and concern shaped the planning and preparation for the winter season 2021/2022. The good experience of the protection measures last winter helped the mountain railways industry to introduce pragmatically implementable protection provisions.

On 13 November 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 pistes could be made available. The significantly improved capacity utilization with ski days during the week is striking. The provisional guest and turnover figures show the following picture up to the end of March 2022:

(column «change» refers to the business year 2019/2020 with lockdown on 14.3.)

Lorenzo Schmid, Chairman of the Board of Directors, is pleased: «Arosa Bergbahnen AG has succeeded in achieving strong sales growth in the profitable business areas. Of particular note is mountain gastronomy, which suffered particularly badly from the SARS-CoV-2 restrictions in the previous year and can now report an impressive sales record until the end of March 2022. Guests' propensity to consume, combined with beautiful terrace weather and a noticeable pent-up demand for culinary delights, are probably a consequence of the corona-related impairments previously endured.»

The guests respected the 2G rule in the gastronomic interiors just as much as the 2G+ rule, which was applied and also consistently implemented in the KuhBar. In the Mountain Lodge accommodation business, the targeted focus on revenue management with an increased presence in online booking platforms has led to increased demand and turnover. In addition to the extremely pleasing development, the company also had to contend with some turbulence. For example, staff planning proved to be extremely challenging due to the increasing work absences in December and January caused by the contagious virus Omicron with isolation and quarantine regulations. Many employees had to perform additional work in order to ensure the high quality of the services offered. However, it was not possible to avoid the closure of some catering outlets or restrictions on the food on offer.

Lorenzo Schmid comments on the expected business result as of 30 April 2022 as follows: «According to our own forecasts, the mountain railway company will achieve a record turnover of well over CHF 30 million by the end of the financial year on 30 April 2022. In correlation with the stable cost management, an outstanding business result is expected at the EBITDA level. In return, the company will fully repay the hardship compensation of CHF 1,382,000 paid for the CHF 3.5 million declines in sales suffered in the gastronomy operations for the period March 2020 to April 2021. When considering the company as a whole, state support under the heading of «hardship» no longer applies.» The final results for the annual financial statements with the detailed annual report will be published together with the invitation to the general meeting in early September 2022.

«The past two financial years will hold 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 perspective, we are grateful for the mild course of the pandemic.» Concludes the Chairman of the Board of Directors.

Outlook for the 2022/2023 business 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 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 piste 9a between Carmenna Mitte and LAW Mitte for CHF 3.5 million." In mountain gastronomy, Arosa mountain railways is investing in a food container at the Brüggerstube for a take-away offer in summer and winter and in a new terrace floor as well as in the room acoustics of the 360° panorama restaurant Weisshorngipfel (total TCHF 350). The obligatory revisions of the railway facilities, including the overhaul of the 1st section LAW, will cost CHF 700,000, and the replacement of a snow groomer will cost CHF 600,000. "With the partial revision of the local planning for Arosa East, we are creating the basis at the level of land use planning to continue on the successful path of further qualitative development and improvement of the snow sports offering in a multi-year staged plan,» says the mountain railways managing director with conviction. In 2026/2027, the next major investment will be the replacement of the Hörnli Express gondola lift.

The 2022 summer season will start on Saturday, 11 June 2022 with the continuous start of railway operations on the Weisshorn, immediately after the completion of the overhaul of the 1st LAW section. Two new bears will then be on display in the Arosa Bear Sanctuary at the middle station.

Further information on the 2021/2022 financial year with the final figures will be sent to shareholders and the media by separate post at the beginning of September 2022. The Annual General Meeting will take place on Saturday, 24 September 2022 at 2.30 p.m. with physical conduct in the Sports and Congress Centre.