AEVIS VICTORIA SA / Key word(s): Annual Results
26-March-2021 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.
Fribourg, 26 March 2021
AEVIS VICTORIA SA: resilient results despite the pandemic
Operating revenue surged by 0.7% and EBITDAR margin reached 15.5%
The results of AEVIS VICTORIA (AEVIS) in fiscal year 2020 were marked by the COVID-19 pandemic. AEVIS's various participations confirmed its high ability to adapt and react despite the difficult environment, especially in the hotel industry, and during the spring lockdown also in the hospital segment. A solid operating revenue of CHF 716.7 million resulted, 0.7% above the previous year's (CHF 711.5 million). Total revenues amounted to CHF 733.0 million (2019: CHF 933.2 million). The year 2019 included the sale of the participations in Infracore SA and GENERALE-BEAULIEU IMMOBILIERE SA for CHF 221.4 million, while no participations were sold in 2020. The operating result amounted to CHF 99.3 million, corresponding to an EBITDAR margin of 15.5%. Depreciation of CHF 59.9 million contributed to the net loss of CHF 30.9 million. The capital base and reserves were further strengthened and the operating cash flow of CHF 23.8 million is encouraging. The financial consequences of the ongoing health crisis cannot yet be quantified and the Board of Directors of AEVIS has decided not to propose an ordinary dividend to the shareholders for the year under review.
High-quality investment portfolio
AEVIS VICTORIA made good progress in implementing its strategy in fiscal year 2020. The core holdings were strengthened, and the portfolio as a whole was further focused and optimized. As announced yesterday, Medical Properties Trust, Inc. acquired 10% of the share capital of Swiss Medical Network, at an enterprise valuation of CHF 1.7 billion, confirming the significant value creation achieved since the network's inception in 2002. With this sale, AEVIS will increase its liquidities by around CHF 145 million and this transaction marks the beginning of a process of opening-up the capital of the private hospital network to strategic investors. In the hospitality sector, the portfolio was significantly expanded through the consolidation of the Seiler Hotels and Hotel Schweizerhof in Zermatt as well as the InterContinental in Davos while the real estate segment also grew significantly due to the integration of the properties of the newly acquired hotels and the reopening of La Réserve Eden au Lac in Zurich.
Swiss Medical Network showed good resilience
The ban on elective surgery imposed by the Swiss Federal Council between 16 March and 27 April 2020 put a halt to activities that had been growing strongly. From May onwards the situation gradually improved, and growth has been recorded again since the third quarter of 2020. Despite the healthcare crisis, the hospital segment showed good overall resilience and achieved an operating revenue of CHF 625.7 million compared to CHF 622.3 million a year ago. Organically, the decline was limited to 0.9% but the loss of sales during the lockdown could not be compensated. Net revenue (medical fees excluded) amounted to CHF 546.7 million, 2.2% more than a year ago (2019: CHF 534.8 million). The operational performance remained solid despite the challenging environment due to close cost monitoring, support measures and realized savings. Swiss Medical Network's objective is to create integrated care clusters in various regions in Switzerland by integrating hospitals, outpatient centers, medical centers and health providers. Such a new approach will hugely benefit patients and the healthcare system as a whole, since it will bring together actors with currently diverging interests.
Hotels impacted by travel and event restrictions
The hospitality segment expanded significantly in 2020 with the integration of Seiler Hotels in Zermatt and InterContinental in Davos, as well as the reopening of La Réserve Eden au Lac in Zurich. This expansion resulted in operating revenue growth of 4.7% to CHF 72.7 million (2019: CHF 69.4 million). Organically, however, a decline of 41.9% was recorded, mainly resulting from the regulations issued by the governments. Taking into account the absence of foreign guests, the almost complete lack of MICE business (meetings, incentives, congresses, exhibitions) and the closure of restaurants, the result can nevertheless be qualified as satisfactory. The management took quick measures, the staff were very flexible, and the Group remained consistent with its pricing policy. An operating result (EBITDAR) of CHF 6.2 million was achieved, corresponding to an EBITDAR margin of 8.6%.
Real estate portfolio doubled
The value of the consolidated hotel real estate portfolio increased by more than 100% to CHF 508.6 million, boosted by the acquisitions of Seiler Hotels and Schweizerhof in Zermatt and the InterContinental in Davos. The unconsolidated healthcare infrastructure portfolio (Infracore) had a total value of CHF 1.1 billion at the end of the reporting period and is expected to yield substantial annual dividend payments. For the 2020 financial year, AEVIS expects dividend income from Infracore in the amount of CHF 9.5 million.
The start of 2021 is promising in both the hospital and hospitality segments. Swiss Medical Network expects a significant increase in activities compared to the previous year, as the Group is steadily gaining in attractiveness for physicians, patients and employees. The hospitality segment noted a difficult winter season because of the constraints imposed on the hospitality industry and the continued absence of foreign tourists. With the end of the winter season, the visibility for the coming months remains difficult. Currently, only four hotels are in operation and the Victoria-Jungfrau Grand Hotel reopens its doors today. Real estate valuations are not directly affected by the pandemic. Due to the ongoing restrictions imposed by the Confederation and the cantons, the Group refrains from publishing revenue or margin targets at Group level for the financial year 2021.
AEVIS VICTORIA SA's Annual Report 2020 can be downloaded via this link:
Webcast today at 10.00 CET
AEVIS VICTORIA SA will present its Annual Results 2020 during a webcast today at 10:00 CET. The results call will be headed by Antoine Hubert, Delegate of the Board. The conference will be held in English.
For participants to the conference call (slides only, no audio, no delay):
Conference Call Details:
Dial in numbers:
CH: ++41 44 580 6522
DE: ++49 692 017 442 20
UK: ++44 203 009 2470
US: ++1 877 423 0830
Participant PIN Code: 99829528#
For further information:
AEVIS VICTORIA SA Media and Investor Relations: c/o Dynamics Group, Zurich
Philippe R. Blangey, email@example.com, +41 (0) 43 268 32 35 or +41 (0) 79 785 46 32
Séverine Van der Schueren, firstname.lastname@example.org, +41 (0) 79 635 04 10
AEVIS VICTORIA SA - Investing for a better life
AEVIS VICTORIA SA invests in healthcare, hospitality & lifestyle and infrastructure. AEVIS′s main shareholdings are Swiss Medical Network SA, the only Swiss private network of hospitals present in the country's three main language regions, Victoria-Jungfrau AG, a luxury hotel group managing nine luxury hotels in Switzerland, Infracore SA (30%, directly and indirectly), a real estate company dedicated to healthcare-related infrastructure, a hospitality real estate division, Medgate (40%), the leading telemedicine provider in Switzerland, and NESCENS SA, a brand dedicated to better aging. AEVIS is listed on the Swiss Reporting Standard of the SIX Swiss Exchange (AEVS.SW). www.aevis.com.
End of ad hoc announcement