AEVIS VICTORIA SA / Key word(s): Half Year Results
16-Sep-2022 / 07:00 CET/CEST
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 2022
AEVIS VICTORIA SA – AEVS.SW – Half-year results 2022: Net profit jumps to CHF 47.2 million
AEVIS VICTORIA (AEVIS) achieved strong results in the first six months of 2022, with all segments performing well. Total revenues increased by 42.6% to reach CHF 584.2 million, driven by encouraging organic growth of 9.9% as well as consolidation effects of various acquisitions completed in the second semester of 2021, mainly in the hospital segment. EBITDAR surged 49.8% to CHF 125.7 million and net profit increased to CHF 47.2 million (2021: CHF 14.3 million).
Strategically, the investment portfolio of AEVIS was strengthened with the purchase of a minority stake in the digital health platform Well, while the minority participation in Medgate was sold with a substantial profit. AEVIS plans to further adjust its portfolio into a pure-play investment company and expects that the business performance within the three focus sectors to remain encouraging in the second semester of 2022. Currently, several potential transactions are in the pipeline, both tactical acquisitions for further growth and targeted divestments. In the Arc Jurassien, discussions are progressing with potential partners to create a local system of integrated care. The business developed well during the first six months of 2022. Hospitality benefited from the lifting of the Covid restrictions, while in the hospital sector the scope of consolidation was significantly expanded, and those investments paid off. Overall, consolidated revenues increased to CHF 584.2 million, 42.6% higher than the previous year (CHF 409.8 million). Organic growth amounted to 9.9%. The higher revenues are also reflected in an enhanced operating profit at the EBITDAR level, which increased by 49.8% to CHF 125.7 million (2021: CHF 84.0 million), corresponding to a slightly higher margin of 23.9% (2021: 23.4%). Net profit improved from CHF 14.3 million to CHF 47.2 million.
Swiss Medical Network revenues jump by 30.5% to CHF 450.0 million
Swiss Medical Network's revenues grew strongly thanks to a significant expansion of the scope of consolidation in the second half of 2021 (increase of the shareholdings in Hôpital du Jura bernois SA to 52%, in Rosenklinik AG to 100%, in Klinik Pyramide am See AG to 100% and 80% acquisition of 11 Xundheitszentren). Overall, revenues increased to CHF 450.0 million in the first half-year of 2022, representing a growth of 30.5% compared to the previous year (2021: CHF 344.7 million). Organically, the increase in the Hospitals segment was 5.2% in the first half-year, with growth in the second quarter slightly above the first three months of 2022. With the integration of Hôpital du Jura Bernois, the operating EBITDAR margin has been diluted to 16.8% (2021: 20.2%) but remained at the previous year's level with a constant perimeter. This effect has also been observed in the past as part of the buy-and-build strategy of Swiss Medical Network, with the aim of exploiting the full potential of the hospitals and reaching the target margin level of mature clinics.
Hotels achieved high organic growth and revenues surpassing pre-pandemic levels
The Hospitality business unit, which include ten 4- and 5-star hotels in Switzerland and abroad, recovered from the pandemic-related travel restrictions and temporary closures in the previous year and achieved substantial organic growth of 48.2%. Excluding hardship compensation in the previous year (recognized in revenues), organic growth was a very high 145.4%. Overall, segment revenues increased from CHF 53.0 million to CHF 80.2 million. These trends continued seamlessly in the summer months. The acquisition of the boutique hotel L'Oscar in London at the end of March 2022 had only a limited impact on the first-half results. A total of 64’221 overnight stays were recorded in the 940 available rooms, with an average room rate of CHF 679, more than 30% above the same period last year.
Real estate portfolio valued at CHF 643.5 million
The value of the consolidated hotel properties amounted to CHF 562.8 million at the end of the reporting period. In addition, the freehold properties of the hotel L’Oscar in Central London were valued at CHF 80.7 million on 30 June 2022, bringing the total value of the real estate portfolio to CHF 643.5 million.
In line with the Group's investment activity, the current investment portfolio is expected to generate significant dividends and capital gains at the holding level in fiscal 2022, which should allow for a continuation and intensification of the ordinary dividend policy in 2023.
Operationally, AEVIS expects further growth at Swiss Medical Network and a positive development in the hotel business. Due to the diversity of its participations and the current macroeconomic challenges, the Group is refraining from issuing consolidated revenue or margin targets for the financial year 2022.
AEVIS VICTORIA SA’s Half-Year Report 2022 can be downloaded via this link:
For further information:
AEVIS VICTORIA SA Media and Investor Relations: c/o Dynamics Group, Zurich
Philippe R. Blangey, firstname.lastname@example.org, +41 (0) 43 268 32 35 or +41 (0) 79 785 46 32
Séverine Van der Schueren, email@example.com, +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 ten luxury hotels in Switzerland and abroad, Infracore SA (30%, directly and indirectly), a real estate company dedicated to healthcare-related infrastructure, Swiss Hotel Properties SA, a hospitality real estate division, 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 Inside Information