H1 and Q2 2021 RESULTS

Steinhausen, 26 August 2021, Selecta, Europe’s leading route-based self-service retailer, announces its results for the six months ended 30 June 2021:

• Adjusted EBITDA2,3 of €82.1 million, an increase of €55.1m compared to H1 2020, confirms strong improvement in profitability due to the positive impact of the rightsizing and cost initiatives, enabling the Group to preserve a strong liquidity position4 of €164.7 million.
• The Group´s sales5 performance of €492.6 million, decreased by -3.4% compared to H1 2020, continued to be impacted by COVID-19 pandemic. A gradual pick-up in activity during the first half-year lead to Q2 2021 Group´s sales increasing 35.5% compared to Q2 2020.

H1 Performance Summary1

Sales5 of €492.6 million, which is 67.9% of the Group’s sales for H1 2019, decreased by -3.4% compared to H1 2020 due to the pandemic impact. Gradual month after month pick up of our business activity over the first half-year reaching 73.5% of 2019 intramonth sales in June.

Adjusted EBITDA2,3 of €82.1 million strongly ahead of last year and noteholder plan,due to strong substantial cost savings. Last Twelve Months Adjusted EBITDA2,3 increased to €140.3 million.

Reported EBITDA of €65.6 million and free cash flow of €4.3 million continue to be impacted, as expected, by the one-off costs related to the rightsizing.

Q2 Performance Summary1

Sales5 of €258.0 million, an increase of 35.5% compared to the Group’s sales for Q2 2020 and also higher than sales for Q1 2021.

Sales recovery to 2019 levels still impacted by the pandemic, with toughest conditions seen in France, Italy, Spain and the UK, whilst Germany, Switzerland and Austria are closer to 2019 levels. The Public channel is showing the stongest performance having almost recovered 2019 sales per machine per day (“SMD”) levels driven by Petrol and Railway channels. SMD for the Service and Administration segment of the Private channel continued to be negatively impacted as this segment is more exposed to work from home policies, while the Group’s Manufacturing and Logisctics segments have improved. The Semi-public channel SMD was particularly impacted by maintained lockdowns in Education and Healthcare segments.

Adjusted EBITDA2,3 of €48.4 million, strongly ahead of last year and noteholder plan, driven by substantial cost savings. Margin of 18.7%, up +19.6 percentage points compared to last year.

Reported EBITDA3 of €39.0 million and free cash flow of €16.5 million continue to be impacted, as expected, by the one-off costs related to the rightsizing of the organization.

Liquidity headroom4 of €164.7 million, which reflects strong liquidity and daily cash discipline maintained over the quarter.

Joe Plumeri, Executive Chairman, said:

“We are making excellent progress in the execution our ONE Selecta transformation vision. The implementation of our go-to-market strategy and strong sales pipeline allows us to provide tailormade solutions based on the individual need of our clients. This, coupled with ongoing investments in innovative technology solutions and training, allows us to deliver upon our purpose of creating millions of moments of joy and happiness for our clients and their consumers every day.”

Christian Schmitz, Group Chief Executive Officer, said:

“Selecta remains superbly positioned to meet the needs of the post COVID-19 world. A continuous dialogue with our clients helps us understand their needs as they plan to welcome employees back to the office. Selecta’s flexible, 24/7 offering is exactly what they are looking for under new, hybrid working conditions. This, together with the succesful execution of our `ONE Selecta´ vision to transform and further grow our business, gives us confidence in achieving our strategic plan in 2021 and beyond.

 

1 At actual exchange rates. There is no material difference from constant currency rates
2 Adjusted EBITDA: Earnings before Interest, Tax, Depreciation and Amortization and prior to one-off items (external and internal costs which are not related to the on-going business)
3 2021 numbers include the effects of IFRS 16, which was adopted from 1 Jan 2020
4 Cash at Bank of €76.6 million plus €88.1 million available RCF
5 Sales: Revenue after payment of vending fees