For over 55 years, we have been creating shared happiness for authentic, positive impact experiences in Europe’s most beautiful destinations.
As a European player in local tourism, we are committed to helping everyone rediscover the essential in a preserved environment. Our business, which is close to the regions, involves relationships of trust with all our stakeholders.
This section is dedicated to the Group’s investor relations and shareholders and presents key figures, share price information, publications, financing operations and financial calendar.
This press release presents consolidated financial results established under IFRS accounting rules, currently being audited, and closed by the Pierre et Vacances SA Board of Administration on 29 November 2022.
* data expressed according to the Group’s operational reporting
The Covid-19 pandemic and the restrictive measures necessary took a heavy toll on the Group’s activities during 2019/2022 and 2020/2021. In this context, an amicable conciliation procedure was opened on 2 February 2021 with the aim of reaching friendly solutions with the Group’s main partners, specifically creditors and lessors, under the supervision of the conciliators.
On 10 March 2022, the Group concluded firm agreements with Alcentra, Fidera and Atream, as well as banking creditors, Euro PP holders and the group of Ornane bond holders. These agreements met the objective to preserve the entire Group and to reach a balanced financial structure by reducing debt and securing the liquidity required to enable the deployment of the Reinvention strategic plan.
On 16 September 2022, the capital and financial restructuring operations were finalised, resulting in:
After completion of the Restructuring Operations, 25.4% [1] of the capital of Pierre et Vacances SA is held by Alcentra, 24.2% by Fidera, 11.9% by the creditors of the state-backed loan, 8.8% by Pastel Holding, and 29.7% by the free float (of which 16.1% from the conversion of receivables into capital and 5.5% from the capital increase reserved for Schelcher Prince Gestion and certain Ornane bearers).
The restructuring operations have been accompanied by a complete renewal of the Board of Directors, now chaired by Mr Georges Sampeur in replacement of Mr Gérard Brémond. The new shareholders (Alcentra, Fidera and Altream) are represented on the Board and three new independent directors have been named. Franck Gervais, Group CEO, is also a Board member.
The Reinvention strategic plan, announced in May 2021, is delivering the first results in all of its pillars:
At the same time as seeking new funding, the Group held discussions with its lessors with a view to establishing joint solutions for rental payments suspended during periods of closure or restriction. As such, during 2021, the Group sent several proposals to amend the lease contracts[1] to its individual owners. On 30 September 2022, the overall acceptance rate (for all amendments) stood at 81%.
The Group also aims to manage the claims filed[2] by individual lessors who did not sign the amendment proposals by opposing various legal reasoning, or depending on the case, by requesting grace periods. On 30 September 2022, the Group nevertheless reflected in its accounts the consequences of the rulings returned by the Court of Appeal on 30 June 2022, which were disadvantageous to lessees concerning the periods of administrative closure (negative impact of €9 million on EBITDA). As such, all of the risks concerning the non-payment of rents for the periods of closure (including periods of administrative closure) are recorded under liabilities in the balance sheet on 30 September 2022.
On 22 March 2022, the Group obtained an amount of €24.2 million from the French state in so-called “closure” aid, aimed at compensating for uncovered fixed costs for companies whose business suffered especially harshly due to the Covid-19 pandemic and which respected the conditions stipulated. The Group is set to pass a percentage of this aid onto certain individual lessors, in accordance with the amendments concluded with these lessors under the framework of the conciliation procedure opened in 2021.
Moreover, in its accounts for 2021/2022, the Group recorded €23 million in specific aid granted by the German Federal government to compensate for the impact of the health crisis.
Opening of a new Center Parcs in Lot-et-Garonne
On 23 May 2022, Center Parcs opened the doors to its first domain in the south-west of France and the seventh in the country: Landes de Gascogne, a domain with 400 cottages with an original concept and designed to raise awareness and educate families in understanding nature and how to respect it. Located around 100km from Bordeaux, it offers an open experience on the wealth of the Lot-et-Garonne department and the New Aquitaine region. The Domain is already hugely successful with an average occupancy rate of almost 92% since its opening.
On 29 September 2022, the Group announced to the employee representatives concerned, a project to change its organisation as part of the guidelines of the Reinvention strategic plan. The project consists of resizing certain support functions, by outsourcing activities related to pay in France and some of the accounting businesses, as well as adapting headcount in the Major Projects business line to its business volume. These changes in organisation are set to concern 81 jobs in France and 24 in the Netherlands.
To reflect the operating reality of the Group’s businesses and the transparency of their performance, the Group’s financial communication, in line with operational reporting as followed by management, continues to proportionally consolidate joint ventures and does not include application of the standard IFRS 16.
IFRS 11 “Joint Arrangements” implies the consolidation of joint-ventures according to the equity method.
IFRS 16 “Lease Contracts” implies:
In contrast rental expenses are replaced by financial interest and the linear depreciation change over the duration of the right of use lease. The rental savings obtained from lessors are not recognised in the income statement, but are deducted from the right of use value and the rental obligation, thereby reducing by as much the depreciation and financial expenses still to be booked over the residual duration of the leases;
The Group’s results are also presented according to the following operational segments, as defined under IFRS 8[1], i.e. :
Note that the Group’s operating reporting as monitored by management, in compliance with IFRS 8, is presented in Note 3 – Information by operational segment of the appendix to the half year consolidated financial statements as of 30 September 2022.
(€m)
2021/2022 according to operating reporting
2020/2021according to proforma operational reporting*
Changevs. 2020/2021
Change vs.
2018/2019 proforma*
Center Parcs
1,067.0
607.8
75.6%
o/w accommodation revenue
751.8
395.3
90.2%
25.5%
Pierre & Vacances
412.6
240.3
71.7%
288.6
158.8
81.8%
-3.8%
Adagio
180.7
75.2
140.3%
161.6
65.5
146.9%
-4.3%
Major Projects & Seniorales
107.4
121.2
-11.3%
Corporate
2.0
9.1
-78.1%
GROUP FY REVENUE
1,769.8
1,053.5
68.0%
Accommodation revenue
1,202.0
619.5
94.0%
12.6%
Supplementary tourism revenue
342.2
181.6
88.4%
15.1%
Income from the tourism businesses
1,544.2
801.1
92.8%
13.1%
Other revenue
225.5
252.4
-10.6%
* Accommodation revenue expressed in gross terms including marketing fees
After a very good first half (revenue up 141% relative to H1 of the previous year, and despite the impact of the Omicron variant), growth momentum continued in the second half (+39% relative to H2 2020/2021), bringing the Group’s revenue for FY 2021/2022 to €1,769.8 million.
Accommodation revenue over 2021/2022 totalled €1,202.0 million representing almost double the level of revenue recorded in the previous year in a context of so-called revenge travel.
Revenue over the year was higher than the pre-crisis level, with accommodation revenue up 12.6% relative to 2018/2019, including:
These performances stemmed from the rise in average letting rates (+23%), thanks to premiumisation of the Domains. The average occupancy rate stood at 75.4% (vs. 76% over 2018/2019).
Average letting rates were up 3.2% across all destinations, while the occupancy rate rose 4.3 points to 75.1%.
After a first half down 20.4% relative to the first half of 2019, the city residences business restored growth during the second half with an acceleration from one quarter to the next (+1.6% in Q3 and +16% in Q4), driven by the domestic leisure customers in France and the return of international customers in Paris and the Ile de France region.
Over the full-year, average letting rates rose 4.9% and the occupancy rate totalled 72.4% (vs. 78.8% in 2018/ 2019).
These performances confirm the relevance of the Group’s strategic directions and the quality of its tourism offer which meets new the aspirations of customers favouring local tourism. The Group recorded a higher customer satisfaction rate (NPS up 15 points vs. 2020/2021) and attracted 50% of new customers to its Center Parcs and Pierre & Vacances sites over the summer season. Direct distribution channels represented 80% of sales, including 48% on the internet (+2 points vs. 2020/2021).
Over 2021/2022, supplementary tourism revenue totalled €342.2 million, up 88.4% relative to 2020/2021 and 15.1% relative to 2018/2019, driven in particular by performances at Maeva (revenue almost triple the amount recorded in 2019 thanks to the “campings maeva” chain of campsites and the “maeva” Home network managing individual home rentals).
Over 2021/2022, revenue from other activities totalled €225.5 million, primarily made up of:
€ millions
FY 2022
operational reporting
FY 2021
FY 2019
Revenue
1,672.8
Adjusted EBITDA
156.5
-186.8
78.6
139.0
-76.6
18.7
-58.3
21.2
-35.0
-19.8
-17.4
-2.7
0.4
Current operating profit (loss)
98.6
-236.7
30.9
Gain generated by debt restructuring
418.4
–
Financial income and expense
-100.7
-43.7
Other operating income and expense
-53.1
-35.3
Share of profit (loss) of equity-accounted investments
-1.6
-1.4
Taxes
-36.6
-24.2
Net profit (loss) for the year
325.0
-341.3
-33.0
Operational performances
Over 2021/2022, adjusted EBITDA stood at €156.5 million, including the benefits of non-recurring items for a total of around €51 million. As a reminder, 2020/2021 was penalised by more than five months of closures or partial operation of the sites.
Excluding the benefits of this non-recurring income, adjusted EBITDA totalled €105 million, higher than the level seen in the pre-Covid reference year 2018/2019 (€79 million), and the last outlook provided on 2 August 2022 (€96 million).
These performances reflect the dynamic recovery in tourism businesses, with accommodation revenue up 12.6% relative to the pre-crisis period.
Beyond the impact of this recovery in business, adjusted EBITDA for 2021/2022 included non-recurring items and in particular:
On 16 September 2022, under the framework of the Group’s restructuring operations, €554.8 million in debt was converted into capital, of which (i) €136.4 million booked as capital/issue premium (amount corresponding to the fair-value of shares issued in exchange, determined on the basis of the share price of 16 September 2022, the date of issue) and (ii) €418.4 million booked under financial income (gain generated by debt restructuring), corresponding to the difference between the book value of the original debt and the fair value of the shares issued in exchange”. For further details on the accounting of the capital increases and changes in debt, please refer to Note 2.2 of the Appendix for the consolidated financial statements as of 30 September 2022.
Net financial income and expenses (excluding the gain stemming from debt restructuring) amounted to -€100.7 million, up €57 million relative to 2020/2021 especially due to:
Operating income and expense
Other operating income and expense totalled -€53.1 million, mainly including:
Beyond costs related to the Group’s reorganisation and the conciliation procedure (-€17.8 million), other operating expense for 2021 included impairment of assets and property stocks (-€11.1 million, primarily for the abandoned Center Parcs project in Roybon) and costs for site withdrawals (-€5.1million).
Tax expenses totalled €36.6 million, primarily stemming from a reversal of deferred tax assets in France related to the updating of revenue projections under the framework of the revised Reinvention business plan, and tax expenses payable in Germany and the Netherlands.
Net profit for the year
Net profit amounted to €325.0 million, enabled by growth in operating performances and the gain generated by the conversion of debt into capital as part of the restructuring operations.
30 September 2022
30 September 2021
Change
Goodwill
138.8
138.2
+0.6
Net fixed assets
390.0
356.8
+33.2
Lease assets
74.9
80.5
-5.6
TOTAL USES
603.7
575.5
+28.2
Share capital
241.1
-423.9
+665.0
Provisions for risks and charges
124.4
92.3
+32.1
Net financial debt
-66.8
529.8
-596.6
Debt related to lease assets obligations
88.4
91.7
-3.3
WCR and others
216.6
285.7
-69.1
TOTAL RESOURCES
After completion of the restructuring operations, the Group’s balance sheet has been cleaned up with:
Reminder 30/09/2019
Bank/bond debt
388.3
750.8
-362.5
244.4
Cash (net of drawn credit lines)
-455.1
-221.0
-234.1
-113.5
Available cash
-470.3
-446.7
-23.6
-114.8
Drawn credit lines
15.3
225.7
-210.5
1.3
130.9
After two years heavily impacted by the health crisis and a significant debt position on 30 September 2021, the Group had a negative debt position on 30 September 2022, after completion of the restructuring operations on 16 September 2022.
These operations consisted of:
Gross financial debt on 30 September 2022 (€403.6 million including drawn credit lines) therefore corresponded primarily to:
Leverage
Banking covenants stipulate that the Group’s total consolidated net bank debt remaining at the end of the restructuring operations should not represent more than 3.75x to 5x consolidated EBITDA, with a half-yearly assessment, as of the accounts closed on 31 March 2023.
The amount of debt relative to lease asset obligations corresponds primarily to the restatement of lease contracts concerning central facilities at the Center Parcs Domaine du Lac d’Ailette.
The portfolio of tourism reservations made so far for Q1 2022/2023 is higher than the prior year level, thanks especially to performances by Center Parcs, thereby validating the Group’s strategy, and Adagio. This growth is driven by both the rise in average letting rates, as well as growth in the number of nights sold.
In a difficult macro-economic backdrop, the Group remains cautious and is undertaking an in-depth overhaul of structural costs.
On 18 May 2021, the Pierre & Vacances – Center Parcs Group announced its Reinvention 2025 strategic plan, aimed at establishing the Group as a pioneering leader in a new reinvented and value-creating local tourism, through an in-depth modernisation of its offer and a sustainable performance. As part of the Group’s restructuring agreement concluded on 10 March 2022, Alcentra, Fidera and Atream confirmed that they agreed with the strategic directions of the Reinvention plan while stating they could not rule out that more time of around 12-24 months might be needed to deliver the financial targets initially set (and revised slightly in autumn 2021) due to the current health and international context.
The update to the financial targets of the plan and their projection out to 2026 announced on 22 April 2022, include this shift in the time frame, to which the following main elements are added:
This update to the financial targets was approved with Alcentra, Fidera and Atream, bearing in mind that the Group’s business plan, which carries an ambitious transformation project, is updated periodically.
Note that the targets communicated on 22 April 2022 were the following:
Main targets expressed according to operational reporting
2022/2023
2024/2025
2025/2026
Revenue from tourism activities
1,620
1,795
1,877
Adjusted Group EBITDA*
105
170
187
Group operating cash flows
37
65
93
*Primarily generated by the tourism businesses
The Group confirms its targets today. For 2022/2023, the Group remains confident, yet careful, on its ability to offset the rise in its operational costs (energy and wages especially), though higher selling prices enabled by the premiumisation of its offer. Revenue forecasts for the tourism businesses have therefore been revised upwards to €1,660 million (vs. €1,620.0 million previously). While EBITDA and cash flow targets are maintained. The Group is also working on additional savings plans (opex and capex), that it could activate if the economic backdrop were to become less beneficial.
On 3 October 2022, the Board of Directors decided to allocate 958 preference shares “ADP 2022-1” with a nominal value equal to that of the ordinary shares, namely €0.01 to various management members and 205 preference shares “ADP 2022-2” with the same nominal value to Mr Gérard Brémond. These preference shares have no voting rights and provide no right to dividend pay-outs. These preference shares are convertible into existing or ordinary shares yet to be issued within four years as of 16 September 2022 depending on the performance conditions decided by the Board of Directors.
Following the restructuring and refinancing operations on 16 September 2022, the majority of the Group’s debt was reinstated for a five-year period. Given the uncertain current interest rate environment, the Group has decided to hedge its almost exclusively variable rate debt against a significant increase in interest rates by setting up cap options. The options put in place in November 2022 will cover a nominal amount of €136.5 million in debt until 2024, with a strike rate of 2% to the Euribor 3M rate. To set up these options, the Group has paid a premium of €2 million.
Appendix: Reconciliation table
As stated above, the Group’s financial communication is in line with its operational reporting, which is more representative of the performances and economic reality of the contribution of each of the Group’s businesses, i.e. :
Note that the Group’s operational reporting as monitored by management, in compliance with IFRS8, is presented in Note 3 – Information by operating segment of the appendix to the half year consolidated financial statements as of 30 September 2022.
The reconciliation table with the primary financial statements are therefore set out below.
(€ millions)
Operational reporting
IFRS 11 adjustments
Impact of IFRS 16
IFRS
(90.5)
(67.0)
1612.3
External purchases and services
(1,206.1)
+70.4
+443.8
(691.9)
of which cost of sales of property assets
(131.4)
+66.3
(65.1)
Of which owner rents
(427.7)
+20.0
+368.2(1)
(39.5)
Personnel costs
(403.2)
+14.7
(388.4)
10.7
(2.1)
(0.8)
7.8
Net depreciation, amortisation and provisions
(72.5)
+4.1
(196.0)
(264.4)
(3.4)
+180.0
275.3
(6.1)
+376.0
526.4
(53.1)
+14.4
(38.7)
(100.7)
+1.3
(216.4)
(315.9)
Equity associates
(1.6)
(13.1)
(0.2)
(14.9)
Income tax
(36.6)
+0.8
+2.9
(32.9)
(33.8)
291.3
(39.9)
(76.4)
937.2
(955.8)
+36.7
+393.6
(525.5)
(159.0)
+76.1
(82.9)
(342.3)
+15.5
+304.5(1)
(22.4)
(280.9)
+9.8
(271.1)
15.1
(9.6)
6.0
(68.5)
(217.4)
(271.5)
(236.7)
+11.4
+100.4
(124.9)
(186.8)
+7.6
+317.8
138.6
(35.3)
+2.6
(1.7)
(34.3)
(43.7)
+3.3
(184.3)
(224.7)
(1.4)
(17.5)
(6.0)
(24.8)
(24.2)
+0.2
+6.4
(341.3)
(85.1)
(426.4)
(1) In the Group’s internal financial reporting, rental expense is recognised as an operating expense. Rental savings obtained in the form of credit notes or write-offs, are recognised as a deduction from operating expenses at the time when the rental debt is removed legally. The amount of 304.5 million therefore included:
i. a saving of around €29 million corresponding to the amount of rental payments written off by lessors signing the agreement, offset mostly by a €28 million expense corresponding to the face value of holiday vouchers attributed to them.
ii. a €7 million saving on rents suspended with lessors that have not signed the amendment for the periods of administrative closures during which the Group considers, on the basis of the defence of non-performance legal foundation or that of the measures set out in Article 1722 of the Civil Code, that the rental debt has been extinguished.
iii. A net saving generated by the application of agreements concluded with institutional lessors, representing an amount of €39 million for FY 2021.
Under IFRS accounting, Group revenue totalled €1,612 million, up 72% relative to the previous year, still affected by restrictive measures in the backdrop of the health crisis. Revenue growth was driven by the tourism businesses, benefiting from a general context of revenge travel and a rise in average letting rates, notably on the back of the premiumisation of the offer. The Group’s net profit stood at €291 million and apart from EBITDA of €526 million, included a gain of €418 million stemming from the restructuring operations completed on 16 September 2022 (see above). The Group’s financial restructuring was also impacted by financial expenses, up €91 million relative to the previous year, related especially to external consulting costs (€42 million) and the rise in financial expenses for lease contracts (€32 million), reflecting the increase in the marginal lending rate retained for contracts that were modified over the past 12 months.
386.6
Lease/right of use assets
+2,068.1
2,143.0
Uses
+2,064.7
2,668.4
(596.6)
(355.5)
+12.7
137.1
(66.8)
Debt related to financial leases/rental obligations
+ 2,712.3
2,800.7
(63.7)
152.9
Resources
+2,010.1
2,090.6
2,585.6
(423.9)
(562.5)
(986.4)
15.4
107.6
+2,626.2
2,717.8
(69.0)
216.7
The Group’s IFRS balance sheet shows:
Cash flow after financial interest and taxes
+28.9
+160.4
+189.3
Change in working capital requirement
(110.0)
(103.6)
Flows from operations
(81.1)
+166.8
+85.7
Net investments related to operations
(58.2)
Net financial investments
(10.0)
Acquisition of subsidiaries
+8.5
Flows allocated to investments
(59.8)
Operating cash flows
(140.9)
+25.9
Capital increase in cash
+200.5
Change in borrowings and debts
+116.1
Other flows related to financing operations
+58.4
(166.8)
(108.4)
Flows allocated to financing
+374.9
+208.2
Change in cash
+234.1
FY 2021 operating reporting
Reclassifications(1)
FY 2021 IFRS
(242.5)
+132.9
(109.6)
+109.2
+11.9
+119.4
(133.4)
+144.8
+9.9
(12.3)
+0.7
Dividends received (or earnings passed up) from equity affiliates
+1.6
(50.3)
(48.7)
(183.7)
(38.9)
+206.4
(144.8)
+61.6
+22.7
(1) reclassification of earnings moved up from equity associates (+€1.6 million in 2021/2021 from flows allocated to investments to flows from operations (change in WCR).
Cash flows indicated a positive change in cash of €234.1 million over 2021/2022 compared with a positive change of €22.7 million over 2020/2021. This change stemmed notably from restructuring operations (see above) and cash flow (€189.3 million), which covered the entire cash burn related to changes in working capital requirement (-€103.6 million) and investments (-€59.8 million).
