Regulatory News:
This press release sets out consolidated full-year results
established under IFRS accounting rules, currently being audited
and closed by the Pierre et Vacances SA (Paris:VAC) Board of
Directors on 24 November 2015.
Sharp growth in full-year results
- Current operating profit up 74%,
showing a return to profitability in the tourism businesses
- Operating cash generation of almost €50
million
I. Full-year 2014/2015 turnover and results (1October 2014 – 30
September 2015)
IFRS 11 "Joint Arrangements", applies to the Group as of
2014/2015, and implies the consolidation of joint operations by the
equity method and no longer by proportional integration (Adagio and
Villages Nature partnerships primarily).
For its operating reporting, the Group continues to integrate
joint operations under the proportional integration method,
considering that this presentation is a better reflection of its
performance.
The income statement items and sales indicators commented on
below stem from operating reporting. The reconciliation tables with
IFRS income statements are set out in paragraph III.
1.1. Growth in turnover
Euro millions 2014/2015
2013/2014 Evolutions
Evolutions excluding
stock effects (*)
Tourism 1 180.7 1 141.1
+3.5% - Pierre & Vacances Tourisme Europe 594.5 590.4
+0.7% - Center Parcs Europe 586.2 550.7 +6.4%
o.w. accommodation
turnover 779.9 763.0 +2.2% +3.2% -
Pierre & Vacances Tourisme Europe 401.6 405.9 -1.1% +3.4% -
Center Parcs Europe 378.3 357.1 +5.9%
+3.0%
Property development 255.6 274.4
-6.8%
Total FY 1 436.3 1 415.4
+1.5%
(*) Pierre & Vacances Tourisme Europe: a net reduction in
the network operated prompted by withdrawals from loss-making sites
(Adagio Access residences and seaside locations in particular) and
the non-renewal of leases.Center Parcs Europe: growth in the
network operated prompted by the opening on 29 June 2015 of the new
Domaine du Bois aux Daims in the Vienne department.
- 2014/2015 turnover from the tourism
businesses rose 3.5% to €1,180.7 million, higher than levels seen
over the past two years.
Accommodation turnover was up 2.2% (+3.2% adjusted for
supply effects), stemming primarily from an increase in net average
letting rates (+2.7%).
Occupancy rates rose in the two divisions (Pierre & Vacances
Tourisme Europe and Center Parcs Europe), to 71% vs. 70% in
2013/2014.
International customers accounted for 55% of the Group's
accommodation turnover, up 2.7% relative to the year-earlier
period.
Pierre & Vacances Tourisme Europe posted turnover of
€594.5 million, including €401.6 million in accommodation
turnover. Adjusted for supply effects, turnover growth stood at
+3.4%, benefiting from an improvement in net average letting rates
and higher turnover in all destinations: +4.7% at the seaside
locations, +3.4% at the mountain destinations and +1.9% in city
residences.
Center Parcs Europe contributed turnover of €586.2 million,
including €378.3 million in accommodation turnover, up 3.0%
excluding the impact of the new Domaine du Bois aux Daims.
Turnover growth was driven by the domains in Belgium, Holland
and Germany (+4.3%) with a slight increase at the French
domains.
Turnover from the other tourism businesses increased by
6.0%, driven by the success of marketing mandates, primarily in
Spain.
- 2014/2015 property development
turnover stood at €255.6 million.
Property development turnover stemmed especially from the Center
Parcs domains in the Vienne (€110 million) and at Bostalsee (€14
million), as well as Villages Nature (€24 million), Flaine (€14
millions) and Les Seniorales programmes (€54 million).
As of 15 October 2015, property reservations with
individual and institutional investors represented turnover of €327
million compared with €291 million in the year-earlier period.
1.2. Sharp growth in full-year results
Euro millions
2014/2015 2013/2014
Evolutions Turnover 1 436.3 1
415.4 +1.5%
Current operating profit 21.2
12.2 +74% Tourism 6.1 -6.9 Property development
15.1 19.1 Financial expenses -18.3
-18.3
Current operating profit (loss) before
taxes 2.9 -6.1 +148% Other
operating income / (expense) net of tax -3.8 -13.5 (*) Share of net
income of equity-accounted investments 0.3 0.0 Taxes -12.1
-7.2
Net profit (loss) -12.7
-26.9 +53% Change in the fair value of ORNANE
1.2 3.6
Net profit (loss) after the change
in the fair value of ORNANE -11.5
-23.3 +51% Attributable to the owners of the Company
-11.6 -23.4 Non-controlling interests 0.1 0.1
*In 2013/14, other income and expense net of tax including €4.2
million in costs prompted by the buy-back in February 2014 of 96.5%
of the number of OCEANE bonds initially issued in February
2011.
Current operating profit
- Current operating profit in the tourism
businesses stood at €6.1 million, restoring profitability levels in
line with the target announced at the start of the year.This result
was achieved especially via turnover growth (+€11 million) and the
reduction in rental expenses (€12 million, in line with forecasts).
These gains were higher than the impact of inflation in charges
(estimated at €10 million).
- Current operating profit in the
property development businesses stood at €15.1 million, implying a
margin of 6% on turnover.
In all, current operating profit was up 74%.
Net profit (loss)
- Other income and expense net of tax
primarily included the following non-recurring items:
- €2.2 million in closure costs of
loss-making sites,
- €1.2 million in restructuring
costs.
- After taking account of the change in
fair value of the ORNANE share allocation right (income of €1.2
million), the net loss was -€11.5 million, a huge improvement
relative to the year-earlier period (-€23.3 million).
1.3. Significant reduction in net debt
The Group's net debt was reduced by €47 million,
benefiting especially from high growth in tourism operating
performances and the cash generated by the property development
businesses (Center Parcs Domaine du Bois-aux-Daims notably).
This debt reduction contributed to the clear improvement in the
Group's net bank debt/equity ratio, which stood at 34% on 30
September 2015, compared with 46% on 30 September 2014.
Euro millions 30.09.15 30.09.14
adjusted(1)
Net bank debt (2) 125,2 170,5 Equity 364.9 374.3
Net bank debt/equity 34% 46%
(1) data adjusted for the impact of the first application of
IFRS 11(2) Net financial debt adjusted for rental commitments for
facilities at the Center Parcs de l'Ailette
II. Outlook
Growth in tourism reservations to date
for first quarter 2015/2016
In view of the level of reservations to date, the Group is
forecasting first quarter 2015/2016 tourism turnover higher than
the level posted in the year-earlier period:
- for the Pierre & Vacances Tourisme
Europe division, turnover should increase at all destinations.
- for Center Parcs Europe, growth is set
to stem from the domains in Belgium, Holland and Germany and from
healthy performances at the new Domaine du Bois aux Daims.
Post-closing events
- On 6 November 2015, the Pierre &
Vacances-Center Parcs Group and Chinese group HNA Tourism signed
strategic partnership agreements including two parts:1. The
development of tourism destinations in China inspired by the Center
Parcs and Pierre & Vacances concepts.The projects are to be
implemented by a joint-venture 60% owned by the HNA Tourism Group
and 40% by the Pierre & Vacances-Center Parcs Group, which is
to provide property and tourism services on behalf of the investors
in each development.
- HNA Tourism pledges to mobilise
financing for the first five developments over the next three years
for a total investment of around €1 billion. It is also to
participate in the search for property developments and the
delivery of administrative authorisation. Via its travel agency
subsidiary, it is to foster tourism distribution for Pierre &
Vacances-Center Parcs' European destinations with Chinese
customers.
- The Pierre & Vacances-Center Parcs
Group is to contribute its property development and tourism
know-how to the joint venture by steering the planning,
architectural and landscaping conception, as well as the design of
each project, property sales to individuals and tourism management
(distribution and operation) of the projects developed.2. HNA
Tourism is to take an equity holding in Pierre et Vacances S.A.HNA
Tourism is to subscribe to a reserved rights issue representing
10.00% of the capital of PVSA after the operation, at a price of
€25.18 per share. Following this capital increase, SITI (holding
company controlled by Gérard BREMOND) is to remain the majority
shareholder in terms of capital and voting rights.For further
information, see the press release published on the Group's website
on 9 November 2015: www.groupepvcp.com
- In 20 November 2015, Pierre &
Vacances-Center Parcs Group and Eurosic signed an agreement
concerning financing of the sixth German Center Parcs located
in the Allgau region in Bade-Wurtemberg.Eurosic is to acquire the
future domain located in forestland of 184 hectares, made up of 750
cottages and recreational facilities. The project represents an
investment of €255 million before tax.The domain's facilities and
accommodation are to be leased to an operating company belonging to
the Pierre & Vacances-Center Parcs Group under the framework of
a long-term lease.The domain is due to open in 2018.
Strategic directions
2014/15 was another important stage for the Group, with a return
to current operating profitability in the tourism businesses,
further growth in consolidated earnings and significant cash
generation.
These performances reflect the relevance of strategic directions
for the Group's two businesses:
- A strategy of growth and
differentiation in the tourism businesses, based on a number of
focuses:
- Enhancing the tourism offering with
increased segmentation and tailor-made services and offers.
- The development of digital services
benefiting customer relations and performance.
- Optimising distribution methods by
brand and by market.
- New marketing and rental management
models (Maeva.com).
- Further cost cutting, especially on
rental expenses in the Pierre & Vacances and Adagio networks
(reduction estimated at €67 million(5) between 2012/2013 and
2018/2019).
- Ongoing targeted property
development in contributing brands/markets in order to generate
property margins and for tourism operations:
- Internationally, with huge prospects in
China following the creation of strategic partnerships with the HNA
Group.
- In Belgium, Holland and Germany, with
the development of the Group's business model on the existing
Center Parcs domains by off-plan renovation sales to individual
investors,
- In Germany, with the financing by
Eurosic Group of the Center Parcs domain in Allgau,
- In France, the continuation of projects
to develop Villages Nature, three midsize Center Parcs as well as
the Center Parcs in Roybon in the Isère department. Meanwhile,
development of the Pierre & Vacances brand focuses on the
"premium" label (Deauville, Méribel).
Strengthened by the momentum that is underway, the Group's
actions are aimed at delivering a current operating margin of 5% in
2016/17, in a stable European economic environment.
(5) (including indexation - forecast change in the RRI of 2% a
year - excluding expansion in the offer)
III. Reconciliation table – IFRS Income statement
Euro millions FY 2014/2015operating reporting
IFRS 11adjustments
FY 2014/2015IFRS
TURNOVER 1 436.3 -53.8 1 382.5
CURRENT
OPERATING PROFIT (LOSS) 21.2 -5.1
16.1 Financial income (expense) -18.3
0.2 -18.1
CURRENT NET PROFIT (LOSS) 2.9
-4.9 -2.0 Other income and expense net
of tax -3.8 0.0 -3.8 Net profit attributable to joint operations
0.3 2.8 3.1 Tax -12.1 2.1 -10.0
NET PROFIT
(LOSS) (1) -12.7 0.0
-12.7 (1) excluding change in fair value of ORNANE bond
share allocation right
Euro millions FY 2013/2014operating reporting
IFRS 11adjustments
FY 2013/2014IFRS
TURNOVER 1 415.4 -36.9 1 378.5
CURRENT
OPERATING PROFIT (LOSS) 12.2 -4.8 7.3
Financial income (expense) -18.3 0.4 -17.9
CURRENT NET PROFIT (LOSS) -6.1
-4.4 -10.6 Other income and expense net of tax
-13.5 0.0 -13.5 Net profit attributable to joint operations 0.0 3.1
3.1 Tax -7.2 1.3 -5.9
NET PROFIT (LOSS)
(1) -26.9 0.0
-26.9 (1) excluding change in fair value of ORNANE bond
share allocation right
Information on 2014/2015 earnings includes this press release
and the presentation document available on the Group's website:
www.groupepvcp.com
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151125005714/en/
Pierre et Vacances SAInvestors Relations and Strategic
OperationsEmeline Lauté, +33 (0) 1 58 21 54
76infofin@fr.groupepvcp.comorPress RelationsValérie
Lauthier, +33 (0) 1 58 21 54
61valerie.lauthier@fr.groupepvcp.com
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