Orascom returns to profitability

Orascom Development Holding (ODH) generated total revenues of CHF538.5 million in 2021, up 39.6% from 385.7 million a year earlier. Gross profit increased by 63.1% to 155.9 million in the same period (previous year: 95.6 million). According to ODH, adjusted EBITDA almost doubled to 130.9 million in the reporting period (previous year: 67.5 million; +93.9%).

ODH's share of losses of associates fell by 44.8% to 4.8 million from 8.7 million a year earlier, it said. The improvement was mainly driven by the investment in Andermatt, the company said. In the fourth quarter, Andermatt Swiss Alps reported a profit of 7.2 million, compared to a loss of 5.8 million a year earlier, it said.

On the bottom line, ODH posted its first net profit in seven years, reaching 9.5 million, compared with a loss of 38.4 million in the previous year.

Real estate business was a sales driver

Real estate sales were a key growth driver: ODH sold a total of 664.3 million worth of real estate in FY2021, an increase of 57.7% compared to FY2020. Revenue in the Real Estate segment increased by 55.5% to 380.9 million (previous year: 244.9 million), and adjusted EBITDA for the segment increased by 84.9% to 145.7 million.

For Andermatt, ODH reports net property sales worth 122 million, up 58.4% from 77.0 million a year earlier. Occupancy at the Chedi Andermatt and Radisson Blu hotels increased to a total of 53% (previous year: 45%), with the Chedi reporting occupancy of 70% and the Radisson Blu hotel reporting occupancy of 44%. Total revenue in Andermatt increased by 30.4% to 201.1 million (previous year: 154.2 million). At the end of March, it was also announced that dhe US ski resort operator Vail Resorts acquires a 55% stake in Andermatt-Sedrun Sport AG for 149 million. The entire amount of the transaction will be reinvested and used for further expansion of the destination, ODH announced.

The Group does not want to give an outlook for the current year due to the geopolitical uncertainties resulting from the Ukraine war. The plan is to continue to accelerate the construction of real estate. In order to counter a possible further increase in commodity prices, average selling prices will be raised in all destinations. (ah)