Chairman of the Board of Directors Michel Berchtold and CEO Mario Gertschen presented the business figures for 2023/24 at the AGM of Belalp Bahnen AG on Tuesday, 29 October 2024. Although the number of first-time admissions (skiers and snowboarders) increased by a pleasing 5%, the heavy snowfall and the associated costs in winter had a negative impact. Combined with a weak summer yield, this means that Belalp Bahnen AG ‘only’ reported a small profit for the past business year.

‘However, given the general conditions in which the company operates, this can be regarded as a success. The Blatten Belalp product is attractive, popular and will remain so in the future,’ says Mario Gertschen, CEO of Belalp Bahnen AG.
 

Decline in sales in summer 2023

A difficult start to summer 2023 and the fact that many Swiss people felt the need to travel abroad again after the coronavirus pandemic led to a 19% drop in transport revenue. Due to the low level of construction activity on the Belalp, Belalp Bahnen AG also recorded a 5% decline in transport.

To counteract this, the foreign markets are being managed more intensively in collaboration with the Aletsch Kollektiv. In addition, the intact alpine economy (BelAlp experience) and summit experiences such as the Foggenhorn or Sparrhorn will continue to be promoted.
 

Snowy, but also cost-intensive winter 2023/24

Unlike the summer, the winter got off to an auspicious start. All lifts were operational right at the start of the season, which has been very rare in recent years. ‘Throughout the winter season, our guests were able to enjoy excellent snow conditions and fresh snow again and again. The Hohstock lift and the tunnel to the west side achieved operating and opening times not seen for 15 years,’ says Mario Gertschen.

Unfortunately, this also has a downside: the long operating hours of all facilities led to high electricity costs, while the additional work involved in slope preparation and the associated high personnel costs drove up costs.

At CHF 8'083'000, total income in the 2023/24 business year was at the previous year's level. At CHF 2'245'000, cash flow was CHF 94'000 or 4.0% below the previous year. This is due to the cost-intensive winter. The ratio to total income is 27.8% (previous year 28.9%), which is a good figure.
 

Financial key figures

EBITDA (earnings before interest, taxes, depreciation and amortisation) fell by CHF 78'000 or 3.0% to CHF 2'568'000. The EBITDA to income ratio of 31.8% is considered good compared to the rest of the industry.

After ordinary depreciation and amortisation of CHF 2'273'000, this results in a net profit of just under CHF 7'000.
 

Balance sheet: more equity, less debt

Debt capital was reduced by CHF 1'236'000, i.e. Belalp Bahnen was able to pay off debt despite the tense situation. External debt was reduced accordingly to CHF 20'214'000. Shareholders' equity amounts to CHF 13'943'000. The equity ratio increased from 39.4% to 40.8%. Cash and cash equivalents at the end of the year increased by 3.7% to CHF 4'248'000.
 

Successful solution with creditors and economic reorientation

Beyond the period covered by the annual report, Belalp Bahnen AG continued to focus on finding a solution for financial stabilisation. Intensive discussions were held with the canton, municipality and banks as well as potential new investors and other partners until the end of June 2024. The Board of Directors carefully examined the various options with the partners. The solution found is based on three pillars: agreement with creditors on adjusted amortisation and interest plans, a more moderate investment plan and structural operational optimisations.

The original restructuring concept from autumn 2023 proved impossible to implement. This envisaged substantial loan waivers from the canton, creditors and municipality as part of a debt-restructuring moratorium, as well as the involvement of new investors. These options were examined in detail with all parties involved. However, in view of the available liquidity and the possible relief through adjusted loan conditions, the canton and the banks expressly rejected debt waivers.

‘Thanks to the concessions of the lenders, we were able to agree adjustments to the amortisation plans,’ says Berchtold. This gives Belalp Bahnen AG the flexibility to repay the loans over the long term instead of immediately. The interest-free loan from the municipality of Naters, which remains the majority shareholder of Belalp Bahnen AG until further notice, will be suspended.
 

More moderate investment plan

At the same time, the Board of Directors is aware that further efforts are required. It is therefore pursuing a moderate investment plan: The original plan to replace the Hohstock lift with a chairlift has been abandoned in favour of modernising the current T-bar lift. In addition, the Board of Directors has initiated structural operational optimisations in order to further improve the financial operating success and enable necessary investments.

Contrary to the original fears, the measures taken mean that an expensive and image-damaging debt-restructuring moratorium can be avoided. Neither the public sector nor the creditors will lose any money. ‘This is gratifying and thanks go to all those involved who have joined forces to contribute to this realistic solution,’ says Michel Berchtold. The efforts initiated by the Board of Directors to reorganise the business have noticeably improved medium-term liquidity planning. ‘It was important to us that no development options for the future of Belalp Bahnen AG were jeopardised,’ says Berchtold.
 

Resignation of Stephan Truffer from the Board of Directors

Stephan Truffer, who was elected to the Board of Directors in 2023, submitted his resignation from the Board of Directors in September 2024. Additional professional commitments no longer allow him to devote the necessary time and energy to his position on the Board of Directors. He was also part of the regional investor group and stepped down in April 2024 to avoid conflicts of interest in connection with the search for investors. ‘We very much regret Stephan Truffer's resignation. His proven expertise would have been highly desirable for the further strategic development of Belalp Bahnen AG,’ says Chairman of the Board of Directors Michel Berchtold.