Club Med hails ‘strong recovery’ as financial results published

Operator reports operating profit of €98 million

Apr 3, 2023 - 21:04

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Club Med hails ‘strong recovery’ as financial results published

Club Med’s business volume for 2022 “reached pre-pandemic levels”, the operator has announced.

Its financial results show a growth in business volume of €1.7 billion, representing a rise of 100% compared with 2021.

It reported an operating profit of €98 million – higher than in 2019 – after more than 1.3 million customers visited its resorts, equating to 88% of the 2019 figure and a rise of 64% on 2021.

More: Club Med undergoes first rebrand in almost a decade

Resort capacity increased by 62% last year compared with 2021, and stood at 92% of the 2019 level.

The recovery was driven by Europe and the Americas, Club Med said, with Asia “still heavily impacted by the Covid-19 pandemic, despite initial signs of recovery in the second half”.

Henri Giscard d’Estaing, Club Med president, said: “Following the rebound in the second half of 2021, our 2022 results show a strong recovery and acceleration for Club Med in Europe and the Americas.”

Club Med also reported a strong start to 2023 – with the business volumes for January and February reaching their respective highest levels compared with recent years.

Departures scheduled for the first half of 2023 are up by 36% compared with the same period last year, while bookings for the second half are up by 23%.

The brand operates around 70 resorts across more than 30 countries, but will open a further 17 between 2023 and 2025.

Other key points from Club Med’s 2022 results:

Earnings Before Interest, Taxes, Depreciation, and Amortisation stood at €309 million.Net financial debts now stand at €308 million compared with €490 million at the end of 2021.The Global ADR (average daily rate: average price per day) amounted to €208, which is up 15% compared with 2021 and up 20% compared with 2019. Club Med says this increase is mainly due to the implementation of upscaling and “massive investments” in recent years, with 95% of capacity now in the high-end (Premium) and very high-end (Exclusive Collection) categories.The performance in Asia lagged behind Europe and North America. Club Med said: “Asia has been still heavily impacted by Covid-19 pandemic, despite initial signs of recovery in the second half. In Asia, although the business volume in 2022 still had a gap of 48% with that in 2019, Club Med saw in the second half of 2022 the gap (22%) was quickly narrowing down compared with the first half of 2022 (73%). On the other side, the business volume in 2022 had an increase of 110% compared with 2021.”Europe’s business volume increased by 116% in 2022 compared with the previous year and returned to the level of 2019. The capacity of resorts in EMEA climbed to 97% against 2021 and recovered to 86% of the levels in 2019. Club Med resorts welcomed nearly 600,000 customers from Europe – 98% more than in 2021.The Americas business volume increased by 89% between 2021 and 2022, with the 2022 figure being 33% up on 2019.