Shangri-La Asia Ltd 2021 Annual Results
24 March 2022
Strong Recovery in 2021: Negative cash flow reduced significantly to -USD51.2m from -USD301.7m
Results highlights: FY2021 vs FY2010
USDm | FY2021 | FY2020 | YoY (USDm) | YoY (%) |
Consolidated Revenue | 1,241.0 | 1,033.4 | 207.6 | 20.1% |
Effective share of EBITDA | 418.0 | 181.6 | 236.4 | 130.2% |
Operating PATMI | -193.2 | -432.1 | 238.9 | 55.3% |
Total PATMI | -290.6 | -460.2 | 169.6 | 36.9% |
Results summary
- 2021 results saw strong improvement driven by recovery in key markets and Group's effective cost management
- Group reduced full year negative cash flow significantly to -USD51.2m from -USD301.7m a year ago
- 2H 2021 continues improvement trend since outbreak
- Hotel properties in most destinations saw year-on-year improvement
- Group recovery led by Mainland China though uneven due to sporadic local outbreaks
- Hong Kong supported by domestic demand as well as quarantine businesses
- European and some ASEAN hotels saw improvement in 2H 2021 as restrictions began to loosen
- Investment properties continue to provide stable base for the Group
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FY2021 and recent updates
Major events
Hotels
New Opening
- Shangri-LaQiantan, Shanghai, Mainland China (October 2021)
- Shangri-LaShougang Park, Beijing, Mainland China (December 2021)
- Shangri-LaJeddah, Saudi Arabia (February 2022)
- Shangri-LaNanning, Mainland China soft opening (March 2022)
Other Developments
- Signed conditional SPA with Samty Group to divest 80% of Kyoto project, transaction to be completed by Q2 2022 (April 2021)
- Ceased hotel management agreement with Traders Fudu Hotel, Changzhou (June 2021)
Group
- 50th anniversary celebrations with refreshed brand logo and #WithHeart campaign
- Refresh of Shangri-la Circle loyalty program and launch of by-invitation-only Polaris tier to deepen engagement with customers
3
FY2021 and recent updates (Continued)
Strong balance sheet
- Group cash at USD785m as at 31 December 2021
- Total committed undrawn facilities of USD1.9bn as at 31 December 2021, sufficient capacity to cover refinancing needs for next 12 months
- Almost 80% our 2022 refinancing arrangement completed
Prospects
- COVID uncertainties remain, ensure preparedness and readiness to drive business under different operating environments
- Mainland China to capture opportunities from domestic consumption and premiumisation as borders remain closed under zero-COVID policy
- Ex-Chinato prepare for business rebound as travel restrictions are lifted under endemic approach
- Emergence of recent uncertainties from Ukraine, inflation and interest rate hikes
- We continue to be vigilant on cash conservation and cost management
Final dividend
- The Board proposes no final dividend to conserve cash
4
Financial Highlights - FY2021 vs FY2020
- Effective share of EBITDA improved by USD236m (130%) compared to prior year and 48% of 2019 level
- Major improvement driven by hotel business recoveries and stable IP business in China
- Agile operating & cost containment efforts also drove improvement in EBITDA
In USD mn | FY2021 | FY2020 | FY21 v FY20 | % Change | 2021 % | ||||||
of 2019 | |||||||||||
Revenue | 1,241.0 | 1,033.4 | 20.1% | 51.0% | |||||||
207.6 | |||||||||||
EBITDA | 132.8 | (84.9) | nm | 22.7% | |||||||
217.7 | |||||||||||
EBITDA Margin | 10.7% | -8.2% | |||||||||
Effective share of EBITDA (Note 1) | 418.0 | 181.6 | 130.2% | 48.3% | |||||||
236.4 | |||||||||||
Effective EBITDA Margin | 23.9% | 12.1% | |||||||||
Operating Segment PATMI | (71.3) | (288.1) | 75.3% | nm | |||||||
216.8 | |||||||||||
Corporate, Project Expenses and FX | (4.3) | (25.9) | 83.4% | ||||||||
21.6 | |||||||||||
Corporate Interest Expenses (net) | (117.6) | (118.1) | 0.4% | ||||||||
0.5 | |||||||||||
Operating PATMI | (193.2) | (432.1) | 55.3% | nm | |||||||
238.9 | |||||||||||
Other non-operating items | (97.4) | (28.1) | (246.6%) | ||||||||
(69.3) | |||||||||||
Total PATMI | (290.6) | (460.2) | 36.9% | nm | |||||||
169.6 | |||||||||||
(1) Effective Share of Revenue and EBITDA - include the effective share of Revenue and EBITDA of subsidiaries and associated companies
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Shangri-La Asia Ltd. published this content on 24 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 March 2022 11:41:03 UTC.