Selecta Group Q1 FY19 Results

“Strong start to 2019 with another consecutive quarter delivering accelerated growth, profitability and improved cash generation”

Cham, 28. February 2019, Selecta Group, the leading unattended self-service coffee and convenience food provider in Europe, announces its Q1 2019 results for the three months ended 31 December 2018.

Q1 Financial Highlights

  • Gross sales increased 5.6% to €403.8m1 (Q1 FY18: €382.4m)
  • Adjusted EBITDA increased 7.6% to €64m1 (Q1 FY18: €59.5m) and related margin improved by 0.3%
  • Adjusted EBITDA less net capex of €25.9m1 , up 3%, achieved alongside investment in growth demonstrating benefits of synergy programme (Q1 FY18: €25.2m)

1 at constant currency

Q1 Achievements

  • Ten successive quarters meeting expectations as set out in Selecta’s strategic roadmap and fourth consecutive quarter of gross sales growth
  • Synergy programme delivering to enhanced plan of €75m by 2020
  • 95% customer retention achieved, improved net customer gains reflecting increased wins
  • Awarded ‘Best Coffee Supplier’ in Sweden2
  • Continued investment in people to support organic growth
    • Enhanced employee engagement programme launched to support improved customer experience and retention, and 600 staff trained in dedicated sales academy programme
    • Highly experienced leadership hire, with Andy Ransom, CEO of Rentokil, appointed as Non-Executive Director
  • Ongoing investment in technology and systems to further drive efficiencies
    • Telemetry devices now installed in more than 50,000 vending machines, a 70% increase on the prior year
  • M&A programme on track to deliver 3 – 5% annualised growth
  • Continued successful roll-out of innovative MicroMarkets concept, with 76 in operation at the end of December 2018

2 Custice’s annual customer satisfaction survey awards

David Flochel, Chief Executive Officer, said:

“I am pleased to report a strong first quarter performance in 2019. The positive momentum reported in 2018 has continued and this was the tenth successive quarter that the business has delivered on our expectations

“This performance has been achieved while Selecta integrates the transformational acquisitions made in 2017 and 2018. The Group continues to benefit from its synergy programme and operational efficiencies across the business.

“This result demonstrates the success of our route-based business model and our strategy which is focused on sales growth, operational excellence, scale and synergies.

“We remain well positioned for further growth in the coming months and I am confident we will deliver against our full year guidance.”