Press release

Hapimag’s annual profit for 2018 rises to EUR 14.9 million

Steinhausen, 15 March 2019 – The Hapimag Group, headquartered in Steinhausen (in the canton of Zug), posted a consolidated profit of EUR 14.9 million in 2018. That is the fourth successive year that Hapimag has been in profit. The operating income of EUR 17.9 million was also very satisfactory. Sales rose by EUR 5.1 million compared to the previous year. This solid set of results can be attributed to increases in both average occupancy and sales at the resorts as well as an ongoing programme of consistent cost and process optimisation. The equity ratio of 46 % and the 72 % share of internal operating resources continue to keep Hapimag on a sound financial footing.

Hapimag’s consolidated financial statements for 2018 show a consolidated result of EUR 14.9 million (previous year: EUR 11.1 million). The operating result rose from EUR 12.9 million to EUR 17.9 million. At EUR 184.4 million, Hapimag’s operating income was up EUR 8.2 million compared to the previous year (EUR 176.6 million). This increase is primarily due to the rise in sales and occupancy in the Resorts division and higher income from exercised rights of residence. Operating expenses excluding the cost of sales and services rose by EUR 1.1 million to EUR 145.0 million (previous year: EUR 143.9 million; +0.8 %).

Increase in sales and guest numbers at the resorts
The Resorts division contributed to Hapimag’s good operating performance. In total, sales at the resorts increased by 9.0 % versus the previous year to EUR 94.2 million. Average occupancy increased to 72.4 % (previous year: 71.8 %). The number of guests at the resorts rose by a total of 32 763 to 414 916 (previous year: 382 153; +8.6 %) Guest numbers in 2018 thus exceeded 400 000 for the first time in Hapimag’s 55-year history. In addition, the total number of overnight stays rose to 2 817 253 (previous year: 2 688 525). The average length of stay decreased to 6.79 days (previous year: 7.04 days), reflecting the trend for more frequent, shorter trips.

Consistent cost and process optimisation
In the course of implementing Hapimag’s strategic goal of focusing on its core business, personnel expenses at headquarters were reduced (by 3.6 % to EUR 18.8 million).

Satisfied guests
Hapimag received 20 awards from the independent travel website Holidaycheck in 2018 (previous year: 17; +3). Nine of them were Holidaycheck Gold Awards (previous year: 3; +6). Guest satisfaction remained high at 84.0 % (previous year: 84.5 %). Hassan Kadbi, CEO of Hapimag AG, commented: “For us, there is no better form of recognition than satisfied guests. They motivate us to constantly improve the quality of our service. If our guests are happy, then so are we.”

Financing of new buildings and renovation projects
Hapimag invested a total of EUR 56.5 million in 2018 (previous year: EUR 62.2 million), primarily on renovation projects at the London and Porto Heli resorts and on the two new buildings in Cavallino and Steinhausen (administration building). The renovation projects accounted for expenditure of EUR 22.4 million in the year under review (previous year: EUR 25.6 million). EUR 6.2 million was invested on maintenance and repair work at the resorts (previous year: EUR 6.0 million). As a result of the investment in the new resort in Cavallino and the new administration building in Steinhausen, free cash flow fell to EUR -35.1 million (previous year: EUR -27.8 million), while net debt rose to EUR -43.9 million (previous year: -7.4 million).

Sound financial position
The equity ratio of 46 % and the 72 % share of internal operating resources continue to keep Hapimag on a sound financial footing.

Figures (in EUR million) 2018 2017 2016
Operating income 184,8  176,6  188,8
Operating result 17,9  12,9 8,5
Annual profit 14,9 11,1 0,3
Free cash flow -35,1 -27,8 13,6
Capital expenditure 56,5 62,2 20,8
Total assets 647,0 632,1 627,0
Equity in % 46 % 47 45 %
Eigenfinanzierungsgrad in % 72 % 73 % 73 %
Resort occupancy 72,4 % 71,8 % 68,1 %
Number of overnight stays 2 817 253 2 688 525 2 706 130
Number of guests 414 916 382 153 373 200
Workforce (full-time equivalent) 1387 1304 1379

You will find pictures here: www.hapimag.com/medien

For more information, please contact:
Baha Jamous
Chief Marketing Officer & Mediensprecher
+41 (41) 767 82 02
[email protected]

About Hapimag
Hapimag offers holidays to some 125,000 shareholders and members at around 60 destinations in 16 countries. Ever since Hapimag was established in 1963, its business model has been based on one simple idea: investing jointly for individual and sustainable use. Membership is a financially attractive and ecologically sound alternative to owning your own holiday apartment.

www.hapimag.com