Continued reported earnings growth in Q1 2024

Cham, 02 May 2024, Selecta Group, a Swiss-based Foodtech leader with a world-class pan-European distribution network, announces its results1 for the three months ended 31 March 2024:

  • Adjusted EBITDA2 of €54.9 million, 3.5% increase versus last year and Adjusted EBITDA margin of 18.6%, 1.4pp increase versus last year, reflecting our cost discipline and gross margin improvement.
  • Reported EBITDA of €51.5 million, 0.3% increase versus last year and Reported EBITDA margin of 17.4%, 0.8pp increase versus last year as a result of successful transformation.
  • Group sales3 of €295.1 million, down 4.5% versus last year, reflecting underlying growth from net new business and pricing offset by the impact of exiting unprofitable business and early Easter timing.
  • The positive trend in sales per machine per day (SMD) continues, reaching a new record high of €13.1, up 4.9% versus last year. This reflects record Private SMD, Foodtech growth and the removal of underperforming machines as part of our SMD enhancement project.
  • Free cash flow of €7.5 million and broader action plan to deliver cash conversion led to strong liquidity4 of €102.0 million by quarter end.

Joe Plumeri, Executive Chairman, commented:

“At the heart of our journey we find a powerful combination: great tools and solutions alongside a strong leadership team. Together, we are not just in business, we are weaving joyful moments for our clients and their consumers every day. Our path ahead is fueled by commercial momentum and evidenced by improvement of margins and cash flow.”

Christian Schmitz, Selecta Group CEO, added:

“As European Foodtech leader and the foremost distributor of world-class brands, we are strongly committed to our commercial priorities: retaining our clients, growing our existing ones and winning new ones. Our progress is reflected in the continued expansion of profitability and the consistent positive trajectory of unit economics.”

Selecta´s product portfolio with its Foodtech installations continues to attract interest across segments. Notable among these is the recent deployment of our solutions in diverse Swiss Public locations, where visitors and employees can conveniently access a range of food and beverages. Similarly, in a top tier Spanish bank Selecta's solutions provide its employees with round the clock access to fresh culinary delights, offering them an unparalleled convenience in their workplace. Additional compelling cases in Semi-Public spaces, including recent installations at Lindbergh Hotel, Derby University and the European Commission, showcase Selecta's adaptability across sectors. Moreover, Selecta continues to see robust growth in Airports throughout Europe and celebrates the success of bringing modern and appealing environments for people to gather beyond traditional settings to improve consumers experiences. In addition, Selecta highlights its enduring success in Coffee Solutions, securing partnerships with esteemed brands such as Meta across several European markets and Afry in Finland, underscoring its continued strength in the coffee market.

Highlighting its dedication to innovation and collaboration, Selecta recently hosted its fourth annual Groupwide Principles Day in March 2024. Office associates joined forces with Joy and Technical Joy Ambassadors to explore avenues for collective improvement, with a shared goal of delivering enhanced joy to clients and consumers. This event served as a platform for education, exchange, connection, and improvement, reflecting Selecta's commitment to continual advancement.

In its ongoing commitment to transparency and sustainability, Selecta is pleased to introduce a redesigned section on its website dedicated to sustainability. This section offers greater insights into Selecta's sustainable initiatives, organized under the themes of Planet, People, and Product, providing stakeholders with a holistic and comprehensive view of the company's sustainability endeavours.

1 At actual exchange rates
2 Sales: Revenue after payment of vending fees
3 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)
4 Cash at Bank of €40.2 million plus €61.8 million available RCF