Group structure proves itself in this time of crisis: The Schörghuber Corporate Group remains on course for growth in 2020
Munich, September 20, 2021. “Thanks to strict cost and liquidity management implemented at the very start of the crisis and not least of all outstanding teamwork, we have managed to protect the core of our business despite painful losses,” state Nico Nusmeier, Chairman of the Executive Board, and his colleague on the Executive Board, Dr. Hermann Brandstetter. The mature structure of the Group, which has been intentionally retained for risk-diversification purposes, has proven itself once again. “Our four business divisions help and support one another.”
The tower of strength during the Covid-19 crisis was Bayerische Hausbau. Although there were a few cases of unpaid rent and supply shortages in the Construction & Real Estate division, there were no delays in the major construction sites. The sales of the Paulaner Brewery Group, however, suffered massive reductions in the catering, events and export segments, which was not compensated for by the increase in sales in the retail segment. Arabella Hospitality had to close twelve of its 14 hotels for months. Around 80 percent of its employees worked short-time for a period. Ventisqueros was also affected by massive disruption in the catering industry.
The salmon producer countered the loss of this important sales channel with a rapidly developed and implemented online platform for end consumers in the most important export market, the USA. The Group actually used the crisis as a catalyst for its digitization projects. For example, in April 2020 Bayerische Hausbau introduced contactless handover for its 320 rental properties in Welfengarten. Westin Grand Munich quickly converted its ballroom into a hybrid streaming studio.
Despite all of the successful crisis management and all of the innovating, consolidated sales – generated by the fully-consolidated Construction & Real Estate, Hotel and Seafood divisions – fell to 553.6 million euros (previous year: 743.8 million euros), while consolidated results fell to -33.8 million euros (previous year: 329.2 million euros). The equity ratio remained stable at 46.9 percent (previous year: 47.7 percent).
The Beverages division is consolidated at equity. It recorded a drop in sales to 621.6 million euros (previous year: 701.7 million euros). The result fell to 3.3 million euros (previous year: 31.1 million euros).
The Group’s key performance indicators at a glance:
• consolidated sales: 553.6 million euros (previous year: 743.8 million euros)
• consolidated EBITDA (including fair-value assessment): 97.5 million euros (previous year: 288.5 million euros)
• consolidated EBIT (including fair-value assessment): 9.2 million euros (previous year: 442.4 million euros)
• consolidated results after minority interests: -33.8 million euros (previous year: 329.1 million euros)
• equity ratio: 46.9 percent (previous year: 47.7 percent)
• number of employees: 2,469 (previous year: 2,805)
Bayerische Hausbau: Major investment in portfolio and housing construction
Bayerische Hausbau GmbH & Co. KG is the holding company for the Construction & Real Estate division, with activities in the Real Estate and Development business areas. The real estate portfolio worth 3.2 billion euros is mainly concentrated in Munich and generates a stable cash flow from the rental income. The Development business area offers a wide range of services, including property acquisition, the obtaining of planning permission, project planning, the realization of housing developments, commercial property and multi-functional community centers in Munich and Hamburg.
In the financial year 2020 Bayerische Hausbau invested 77.0 million euros (previous year: 37.6 million euros) in its portfolio, mainly in Kardinal-Faulhaber-Strasse 1, where the 5-star ultra-luxury hotel Rosewood Munich will be opened in 2023, in the premium office property PRANNER and in Welfengarten near Nockherberg. In addition, 18.0 million euros (previous year: 17.5 million euros) were spent on maintenance.
The Nockherberg project is one of the biggest housing construction projects being realized by the Development business area of Bayerische Hausbau. In total, 1,500 apartments will be built on the former site of the Paulaner Brewery by 2023. In 2020 several project milestones were achieved.
• Welfengarten subproject: In the second quarter the first tenants moved in. The project comprises in total 390 apartments, 320 of which will remain in the portfolio of Bayerische Hausbau.
• Am Alten Eiswerk subproject: Halfway through the year the first apartments were handed over. In addition to 157 privately financed and 55 subsidized apartments, 1,886 m2 of retail space to serve the area is being built here.
• Am Nockherberg Nord subproject: On the last plot work started on the construction of the Sternenhaus of the Nicolaidis YoungWings Foundation at the end of 2020. The property was also registered. When it has been completed, this will be the point of call for bereaved children, young people, adults and families.
In total, 102 residential units (previous year: 116 residential units) with a volume of 115.5 million euros (previous year: 119.1 million euros) were registered in the past year.
In addition, Bayerische Hausbau is pursuing a whole range of projects to obtain planning permission for residential quarters in Munich. These include Freisinger Landstrasse with a total floor space of 64,000 m2 and the joint ventures Lerchenauer Feld (23 hectares), 5th construction phase of the Messestadt (24 hectares) and Dreilingsweg.
The development of diverse residential quarters in Munich is part of the company’s growth strategy in the Development business area. This also includes the expansion of its project development activities in Hamburg, where in 2021 the signing of an extension to the urban development contract removed the last obstacle for the realization of the ambitious Paloma District in trendy St. Pauli and a joint venture to develop the office property FLOW has paved the way for further growth on the River Elbe. In the Real Estate business area, Bayerische Hausbau is adjusting its strategy and will increase the residential share in its property portfolio (2020: 21.4 percent) significantly with the addition of properties from its future developments.
The Construction & Real Estate division’s key performance indicators at a glance:
• subgroup sales: 329.7 million euros (previous year: 379.1 million euros)
• subgroup EBITDA: 129.8 million euros (previous year: 190.2 million euros)
• subgroup EBIT (including the effects of the fair-value assessment): 88.0 million euros (previous year: 376.7 million euros)
• subgroup results after taxes: 49.3 million euros (previous year: 296.1 million euros)
• equity ratio: 51.3 percent (previous year: 50.2 percent)
• number of employees: 191 (previous year: 179)
Paulaner Brewery Group: Record sales in the retail segment, but reduction in the export and catering segments
Paulaner Brauerei Gruppe GmbH & Co. KGaA is the market leader in the beer market in its core regions of Bavaria and Baden-Württemberg. The company managed in a joint venture with Heineken International B.V. (30 percent) acts as the parent company for the Beverages division. It holds a one hundred percent share in Fürstlich Fürstenbergische Brauerei GmbH & Co. KG, Privatbrauerei Hoepfner GmbH and Privat-Brauerei Schmucker GmbH as well as a 63.8 percent share in the listed company Kulmbacher Brauerei AG.
The sales and results of the Paulaner Brewery Group fell in the reporting year. Its sales volume fell to 7,885 khl (including non-alcoholic beverages, contract production and merchandise, previous year: 8,164 khl). This was mainly due to the export business. High-volume markets such as Italy, France and Spain have a high catering share. Due to closures and restrictions as a result of the pandemic, a significant reduction of -18.9 percent was recorded here. The major Paulaner brand, with its high export share, also suffered from this (-15.4 percent).
In particular Chiemseer and Mönchshof benefited from the positive development in the retail segment. The lager beer brewed in Rosenheim continued the previous year’s strong performance with growth of 41.1 percent to 226 khl. Mönchshof extended its market leadership in the flip-top bottle segment (+ 22.0 percent) and achieved the record level of 1.2 million hl. With a market share of 25.9 percent, Mönchshof accounts for one in every four beers drunk in Germany from a flip-top bottle.
The Paulaner Brewery Group considers itself to be well-positioned for the expected market development with growth potential in the lager beer, non-alcoholic beer, specialty and beer mixed beverages segments. The very successful market launch of the Paulaner non-alcoholic Weissbier 0.0% last year and the equally successful switch of the Paulaner Hell to the Euro bottle this year contribute to this optimism. After all, despite the global pandemic, five new Paulaner breweries were opened abroad, four in China and one in Russia. Performance in 2021 to date has proven the Group’s strategy to be right: in the home market of Germany, market shares have been gained and in exports almost all of the ground lost due to the pandemic has been won back.
The Beverages division’s key performance indicators at a glance:
• subgroup sales: 621.6 million euros (previous year: 701.7 million euros)
• subgroup EBITDA: 106.2 million euros (previous year: 142.3 million euros)
• subgroup EBIT: 16.7 million euros (previous year: 55.7 million euros)
• subgroup result (before minority interests): 3.3 million euros (previous year: 31.1 million euros)
• equity ratio: 29.7 percent (previous year: 31.0 percent), adjusted for the effects of lease accounting in accordance with IFRS 16 35.3 percent (previous year: 35.8 percent)
• number of employees: 2,353 (previous year: 2,544)
Arabella Hospitality: Strict cost management and working on the comeback of tourism
Arabella Hospitality SE is the holding company for the Hotel division. In the reporting year it operated 14 hotels in Germany, Switzerland and Mallorca, eight of which owned by the Schörghuber Group. Management agreements with Marriott International, Inc. are in place for these hotels. They are operated under the well-known brands St. Regis, The Luxury Collection, Westin, Sheraton, Four Points by Sheraton, Aloft and – the Neue Schloss Zürich from this year – as Autograph Collection. Arabella Golf and since January 1, 2021, two Arabella Hotels in the Bavarian Oberland have been added to the portfolio.
The pandemic hit the Hotel division particularly hard. Sales fell to 70.1 million euros (previous year: 213.9 million euros). The result fell from -2.8 million euros in the previous year to -87.1 million euros. International air travel and entry restrictions caused occupancy figures to collapse. In particular in Munich, as well as in Zürich, the dependency of city hotels on international tourism proved to be a major weakness.
In the summer months the restrictions for tourism travel were eased. In Mallorca and Hamburg the hotels recorded much higher room occupancy in this period. The four golf courses on the Balearic island remained open the whole year round.
Despite the massive drop in sales, investments were made. For example, in the renovation of all 372 rooms and the lobby, spa and fitness rooms of the Westin Grand Frankfurt, which started in August 2020. The Westin Hamburg in the Elbphilharmonie had already completed the renovation of its reception floor in May 2020.
Arabella Hospitality is focusing equally on strict cost management and plans for the comeback of tourism. On the one hand, it is expected that the pandemic will have long-term consequences for business travel, for example. On the other hand, experience from past crises has shown that demand in most markets continued the positive trend of previous years after travel restrictions were lifted, albeit after a rather long recovery period. Arabella Hospitality is taking this as an opportunity to review and optimize its existing activities. Further investments in the portfolio are planned, in order to meet people’s unsatisfied hunger for travel with very distinctive hospitality services of outstanding quality.
The Hotel division’s key performance indicators at a glance:
• subgroup sales: 70.1 million euros (previous year: 213.9 million euros)
• subgroup EBITDA: -14.5 million euros (previous year: 53.4 million euros)
• subgroup EBIT: -78.0 million euros (previous year: 8.3 million euros)
• subgroup result (before minority interests): -87.1 million euros (previous year: -2.8 million euros)
• equity ratio: 23.1 percent (previous year: 27.1 percent)
• number of employees: 1,070 (previous year: 1,591)
Ventisqueros: investment in sustainability
Productos del Mar Ventisqueros S.A. runs the operations of the Seafood division. The company is responsible for the production, processing and distribution of Atlantic (salar) and Pacific (coho) salmon. It supplies customers in many countries including the USA, Russia, China, Japan and Brazil.
The closure of the catering sector during the pandemic meant the loss of one of its most important sales channels for Ventisqueros. It also had an impact on the selling price. Moreover, as a result of the pandemic, exports to China and the USA were banned. Ventisqueros therefore did not meet its sales revenue targets, despite a higher sales volume of over 44,000 t WFE. Sales fell slightly to 165.1 million euros (previous year: 166.3 million euros), while the result fell sharply to -5.5 million euros (previous year: 23.5 million euros).
At the same time the company continued to pursue its sustainability programs. For example, the company aims to achieve Aquaculture Stewardship Council (ASC) certification for its production by 2026. In the reporting year, 80 percent of production was already ASC certified. Since 2020 Ventisqueros has also cooperated with a company which processes around 70 percent of the organic waste from salmon farming, for example for the production of food supplements such as Omega-3 salmon oil capsules or cat and dog food. In this way, Ventisqueros was able to feed over 18,000 t of the biomass it does not need into the circular economy. At the end of the year Ventisqueros also prepared its first ESG report.
In recent years the company has worked intensively on the optimization of its production processes and as a result approved a growth plan in 2020 which envisages a harvest volume of 60.000 t WFE. This target is to be achieved essentially by the activation of previously unused licenses and the marketing will be reinforced by consistent differentiation of the Ventisqueros salmon, by quality, sustainable production and the growth of value-added brands.
The Seafood division’s key performance indicators at a glance:
• subgroup sales: 165.5 million euros (previous year: 166.3 million euros)
• subgroup EBITDA (including the effects of the fair-value assessment): 15.3 million euros (previous year: 41.5 million euros)
• subgroup EBIT (including the effects of the fair-value assessment): -6.0 million euros (previous year: 33.6 million euros)
• subgroup result (before minority interests): -5.5 million euros (previous year: 23.5 million euros)
• equity ratio: 68.6 percent (previous year: 75.1 percent)
• number of employees: 1,079 (previous year: 917)
Outlook: Growth through digitization, sustainability and the Group’s employees
Nico Nusmeier and his Executive Board colleague Dr. Hermann Brandstetter therefore see the most effective levers for the Group's ambitious growth in the continued consistent investment in digital infrastructure and business models, in sustainable products and processes and in the Group’s 4,800 employees: “The Covid-19 crisis may have forced us to reflect critically on our targets and adjust the pace of our planned growth. However, our new beginning is no less ambitious,” states Nico Nusmeier.
From 2022 this new beginning will be managed from Schwanthalerhöhe in the heart of Munich. This is where the Group’s management holding company, Bayerische Hausbau and Arabella Hospitality will be relocating their headquarters. Bayerische Hausbau is developing the office property DAVANTO close to the Theresienwiese – and realizing a state-of-the-art office environment for use by the Group: “An atmosphere of transparency in which ideas and innovations for our Group’s new beginning will emerge,” believes Dr. Hermann Brandstetter. And Nico Nusmeier adds: “A place of renewal, creativity and cooperation – with an uninterrupted view overlooking the Theresienwiese and the city's towers towards the Bavarian Alps.”
About the Schörghuber Corporate Group
The family-run Schörghuber Corporate Group, which was founded in 1954 and has its headquarters in Munich, is successfully involved in the four business sectors construction and real estate, beverages, hotels and seafood, in both the national and international arenas. Bayerische Hausbau, which bundles all the real estate and property development activities of the Schörghuber Corporate Group, is one of the largest real estate companies in Germany. The Paulaner Brewery Group, a joint venture with Heineken, is one of the largest regional brewery groups in Germany and boasts brands like Paulaner, Hacker-Pschorr, Mönchshof and Fürstenberg. As the central holding company for the Hotels division, Arabella Hospitality operates 16 hotels in Germany, Switzerland and on the Balearic island of Mallorca. Marriott International is responsible for the management of the hotels. The salmon farming and processing activities in Chile bundled under the roof of Productos del Mar Ventisqueros neatly round off the Group’s portfolio of business activities as the fourth business division, Seafood. Common values – diversity, quality and growth – forge a bond between the four business divisions. The Group’s approximately 4,800 employees ensure that customers enjoy the benefits provided by these shared values every single day. www.sug-munich.com.
PRESS CONTACT
Schörghuber Corporate Group
Bernhard Taubenberger, Head of Communications & Marketing
Denninger Straße 165, D-81925 München, Telephone +49 89 9238-258, Telefax +49 89 9238-114258
be.taubenberger@sug-munich.com, www.sug-munich.com