AEVIS VICTORIA SA / Key word(s): Half Year Results
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
Ad hoc announcement pursuant to Art. 53 LR
Fribourg, 16 September 2021
AEVIS VICTORIA SA: Half-year results 2021 - EBITDAR margin surges to 23.4%
The investment company AEVIS VICTORIA SA (AEVIS) achieved encouraging results in the first half of 2021, driven by the recovery in the healthcare sector and the strong performance of its participation in Swiss Medical Network. Total revenue of the fully consolidated participations increased by 18.2% from CHF 346.6 million to CHF 409.8 million in the reporting period. The pandemic-related shortfalls in hotels and restaurants for 2020 and 2021 were compensated by a hardship indemnity of approximately CHF 22 million, which is reported as other revenue in the respective segments. The increase in revenue coupled with operational improvements led to the EBITDAR increasing significantly from CHF 38.3 million to CHF 84.0 million, corresponding to an operating margin of 23.4%. The more than doubling in the operating result, combined with only slightly higher other expenses, resulted in a net profit of CHF 14.3 million, compared to a loss of CHF 14.1 million in the previous year. AEVIS's balance sheet was significantly strengthened, with an increase in equity of more than CHF 100 million and a decrease in net debt of almost CHF 70 million. Cash and cash equivalents surged by nearly 44% to CHF 94 million at the end of the reporting period.
In a strategic move, AEVIS sold 10% of the share capital of Swiss Medical Network to Medical Properties Trust, Inc. and completed a restructuring of its holding in Générale Beaulieu Holding SA in spring 2021. AEVIS also established a joint venture with Touring Club Suisse (TCS) to develop a Swiss-wide ambulance company, by selling TCS 60% of Swiss Ambulance Rescue. This resulted in a significant gain at the holding level, amounting to CHF 207 million as of 30 June 2021. In order to strengthen the autonomy of Swiss Medical Network, AEVIS intends to continue to selectively sell stakes to fitting partners. AEVIS is currently in talks with further domestic and foreign interested parties from the healthcare and insurance sectors. Further such sales would again lead to significant profits at the holding level and boost AEVIS's financial power for the expansion of its other investments or the development of new pillars.
Swiss Medical Network sees significant increase in activities and profitability
Swiss Medical Network's business gradually returned to normal following the 45-day ban on elective surgery in March 2020, and growth has been recorded again since the third quarter of 2020. This positive trend continued seamlessly in the reporting period and led to higher revenues. Overall, Swiss Medical Network's revenue increased by 17.0% to CHF 344.7 million in the first half of 2021 (2020: CHF 294.6 million), with organic growth of 15.9%. Compared to the last pandemic-free year, this result is very encouraging, as revenue in the first six months of 2021 increased by 10.1% compared to the same period in 2019, of which 6.4% was due to organic growth. Net sales (excluding medical fees) in the reporting period increased to CHF 293.0 million (2020: CHF 250.8 million). Targeted efficiency improvements were reflected in an increased EBITDAR margin, which rose from 15.7% in the first half of the previous year to 20.2% (2019: 19.0%).
Hospitality sector remains impacted by the pandemic
The hospitality business continued to be severely impacted in the first half of the year due to restaurant closures and travel restrictions as well as the almost complete absence of MICE business (meetings, incentives, conventions, exhibitions). Although more local guests frequented the hotels, including on long or extended weekends, these could not compensate for the lack of foreign tourists or the absence of events such as the World Economic Forum in Davos. Revenue totaled CHF 53.0 million (2020: CHF 43.8 million), but around 40% of this revenue was not generated operationally, attributable rather to hardship and insurance indemnities. Organically, a decrease of 35.8% was recorded. A total of 43'743 overnight stays were recorded in the Group's nine hotels with a total of 940 rooms.
Real estate portfolio contributes recurring profit
In the reporting period, the high-quality real estate portfolio remained unchanged. The consolidated hotel properties are valued at CHF 508.6 million and made a solid contribution to the Group's operating profit, with a high EBITDAR margin of 92.1%. The non-consolidated healthcare infrastructure portfolio (Infracore) generated higher revenues due to the fact that, in contrast to 2020, no rent waivers were granted to the hospitals of Swiss Medical Network.
In the first half of 2021, organic growth in the Hospital segment was encouraging, while the Hospitality segment continues to face a challenging situation due to Covid-related restrictions and requirements as well as a lack of foreign tourists. These trends are expected to continue in the second half of the year. AEVIS continues to refrain from publishing revenue or margin targets at the Group level for fiscal year 2021 due to the ongoing limited visibility.
Based on the substantial profit at the holding level of more than CHF 200 million already achieved at half-year, the Board of Directors of AEVIS intends to propose the distribution of a dividend at the next General Shareholders Meeting in 2022. The Board will decide on the amount of the distribution after the end of the 2021 financial year and the assessment of the holding profitability level.
AEVIS VICTORIA SA's Half-Year Report 2021 can be downloaded via this link:
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 (90%, directly and indirectly), 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.