DGAP-News: DO & CO Aktiengesellschaft / Key word(s): Quarter Results
VIENNA - 18 February 2021 - DO & CO Aktiengesellschaft is publishing its results under IFRS for the first three quarters of the business year 2020/2021 today. A global economic downturn and the economic consequences due to the COVID-19 pandemic strongly affect revenue and the result. In the first three quarters of the business year 2020/2021, the
The EBITDA of the DO & CO Group was € 26.61m (PY: € 87.93m) in the first three quarters of the business year 2020/2021. The EBITDA margin was 14.0% (PY: 11.6%). Consolidated earnings before interest and tax (EBIT) of the DO & CO Group amounted to € -24.91m for the first three quarters of the business year 2020/2021, € -73.88m lower than in the same period of the previous year. The EBIT margin was -13.1% (PY: 6.4%).
The net result decreased by € -56.97m from € 21.42m in the previous year to € -35.55m in the first three quarters of the business year 2020/2021. The decline in revenue and in the result is solely and exclusively attributable to the impact of the
While the first quarter of the business year 2020/2021 was characterised by the total standstill and massive restructuring measures, in the second quarter, all three divisions reported the first signs of a slow recovery and resumption of business activities. The measures undertaken by the Management Board have proved effective and revenue and result were thus already significantly increased in the second quarter compared to the first quarter of the business year 2020/2021. Despite new lockdowns and uncertainties due to the COVID-19 pandemic, revenue was maintained at the same level also in the third quarter. The EBITDA margin was even increased to 25.5% due to extraordinary effects in the third quarter of the business year 2020/2021. The Company defies the crisis and achieves a positive net result in the third quarter of the business year 2020/2021 thanks to a rigorous and successful crisis management.
A detailed account on the development of the three divisions of the DO & CO Group is given below:
1. AIRLINE CATERING
The Airline Catering locations reported a significantly decreased business development in the first three quarters of the business year 2020/2021 due to the COVID-19 pandemic, which led to a severe restriction of worldwide aviation. However, in the second and third quarter of the business year 2020/2021, revenue and result were significantly increased compared to the first quarter.
Following the first COVID-19 shock and the shut down in the individual countries, more and more quality-oriented airlines have again started to offer food on board as well as lounge services on the ground as passengers - particularly in the premium classes - had already become very dissatisfied.
After the successful takeover of catering services on all British Airways long-haul flights ex London Heathrow in mid-May 2020, all short-haul flights were also taken over on
Despite the crisis, new important business relations were established. As of
DO & CO was also able to strengthen the cooperation with long-standing customers.
Nevertheless, the Airline Catering division records a decline in revenue of -74.9% due to the unfavourable market environment. In the first three quarters of the business year 2020/2021, revenue only amounted to € 134.50m (PY: € 535.34m). At € 19.02m, EBITDA is below the figure of the same period of the previous year by € -36.06m (-65.5%). EBIT amounts to € -12.96m (PY: € 27.97m). The decline in revenue and in result is solely and exclusively attributable to the impact of the COVID-19 pandemic.
2. INTERNATIONAL EVENT CATERING
Business activities in the International Event Catering division recommenced particularly in the second quarter of the business year 2020/2021. Despite new lockdowns, revenue was maintained in the third quarter. However, in the first three quarters of the business year 2020/2021, revenue and result are still strongly affected due to the impact of the COVID-19 pandemic.
In the first quarter of the business year 2020/2021, all Formula 1 grand prix races were cancelled due to the COVID-19 pandemic, and the start of the season was postponed to the second quarter. Except for the grand prix race in Portugal, all 17 races of the 2020 Formula 1 season were held without spectators in the VIP area. However, DO & CO was able to secure catering services for all Formula 1 teams as well as the management of the Formula 1 for the first six races. In addition to providing culinary services for the individual teams with an overall concept being adapted to COVID-19, DO & CO was also responsible for supplying the entire event infrastructure of the individual hospitality areas. For the remaining races, DO & CO was responsible for providing catering services to the
After all football matches of FC Bayern Munich, FK Austria Vienna and FC Red Bull Salzburg were cancelled or took place without any spectators in the first quarter, DO & CO resumed providing culinary services at some matches in the second and third quarter of the business year 2020/2021. At the Olympic Park in Munich, some smaller events also started to take place again. For the first time, DO & CO also took over the entire culinary services at the Film Festival at the Rathausplatz in Vienna which took place from
At the ATP tennis tournament in Vienna (Erste Bank Open) taking place from 24 October to 1 November 2020, the Company was able to prove its operational excellence and demonstrate that it is possible to host a top-class event even under the toughest restrictions. Altogether, more than 4,500 guests in the VIP area enjoyed the culinary delights.
Despite these delightful highlights, revenue and result in the first three quarters of the business year 2020/2021 are strongly affected by the continuing impact of the COVID-19 pandemic. In the first three quarters of the business year 2020/2021, revenue decreased by -75.5% on the previous year to € 29.41m (PY: € 119.84m). It is pleasing that EBITDA did not decrease as sharply, i.e. only by -57.9% to € 7.43m (PY: € 17.65m), and that it was possible to record a positive EBIT of € 4.06m (PY: € 13.47m).
3. RESTAURANTS, LOUNGES & HOTEL
As in several countries around the world restaurants and hotels had to be closed due to the COVID-19 pandemic already towards the end of the business year 2019/2020 and along with air traffic the operation of airline and airport lounges had to be suspended, revenue and result significantly decreased also in this division.
All DO & CO restaurants in Vienna had been reopened since mid-May until the beginning of November 2020. Encouragingly, revenue from the same period of the previous year was exceeded in the reopening phase. In the third quarter of the business year 2020/2021, the Demel café in Vienna was reopened with a new sales room design being adapted to COVID-19 and a new culinary concept. As of 15 October 2020, a new Asian concept offering contemporary Japanese cuisine was introduced in the form of the new
Furthermore, on 6 December 2020, the construction of the new DO & CO hotel, restaurant and inn near Munich's Marienplatz in cooperation with FC Bayern Munich was completed. However, due to the extension of the lockdown in Germany, the opening had to be postponed as well.
In the first three quarters of the business year 2020/2021, the Restaurants, Lounges & Hotel division accounted for revenue of € 26.00m (PY: € 104.71m). This represents a decrease of -75.2% on the previous year. At € 0.17m, EBITDA is below the figure of the same period of the previous year by € -15.03m (-98.9%). EBIT amounts to € -16.00m (PY: € 7.54m).
After almost a year of pandemic, it can be said that, due to the consistent implementation of all these measures and the placing of a convertible bond at an interest rate of 1.75% which only took place in January 2021, DO & CO is in the position to meet all its obligations on its own merits. Encouragingly, all this will enable DO & CO to be one of the first companies to get off to a flying start as soon as the legal restrictions are lifted.
Though no improvement is expected for the fourth quarter of the current business year
In all its divisions and its different markets, DO & CO is well prepared for these market openings owing to its existing business model as well as newly developed products, and hopes for an excellent market positioning in all segments.
The acquisition of new major customers such as Delta Air Lines in Detroit or Jet Blue in
Also in the remaining two divisions, DO & CO is all set, in particular with a new restaurant complex and boutique hotel in the city centre of Munich and further gourmet retail activities in Vienna that are soon to be expanded to Munich and London as well.
The increasing number of vaccinations will therefore not only stimulate the restaurant business but also boost all activities in the International Event Catering division.
Management therefore is confident that DO & CO will benefit from the future market opening and the upcoming consolidations and win further market shares.
Details on the placement of the € 100m convertible bonds of DO & CO
Strengthening the Partnership with Jet Blue
18.02.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
DO & CO Aktiengesellschaft
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