Q2 2023 RESULTS
Strong profitability and cash conversion in Q2 2023
Cham, 02 August 2023, Selecta Group, a Swiss-based Foodtech leader with a world-class distribution network in Europe, announces its results for the second quarter of 2023:
- Strong Adjusted EBITDA3 of €63.1 million, 21.1% increase versus last year, and Adjusted EBITDA3 margin of 20.6%, improvement driven by structural productivity and cost discipline.
- Reported EBITDA of €55.6 million, 20.9% increase versus last year as a result of higher Adjusted EBITDA and transformation actions normalising.
- Profitability expansion across all regions and record sales per machine per day of €13.1, an increase of 20.9% versus last year.
- Group sales2 of €307.2 million, 3.0% sales growth versus last year in a period of strong profitability focus.
- Free cash Flow of €35.3 million, contributing to robust liquidity4 of €153.3 million. We continue to drive cash generation projects and daily cash discipline.
Executive Chairman, Joe Plumeri, commented:
“I am pleased to share Selecta’s strong results for the first half of 2023. We continue to lead the Foodtech Market, consistently meeting our clients' needs with world-class brands and outstanding service. Moving forward, our focus remains on delivering millions of moments of joy to our consumers.”
Christian Schmitz, Selecta Group CEO, added:
"We are proud to share Selecta’s strong results in Q2 2023. Our relentless pursuit of innovation and strategic partnerships have driven expansion of our Foodtech solutions. And our focus on cost discipline continues to deliver strong profitability.”
Expansion of long-term partnerships and innovative Foodtech installations across Europe
Selecta’s Foodtech installations have increased significantly mainly due to food markets (1,430 total points of sale, +50% vs. last year) and of intelligent vending solutions (850 total points of sale, +150% vs. last year) expansion across Europe by the end of June 2023, leading to a strong sales growth of our Foodtech solutions. The integration of Smart Fridges with fresh food and Premium Coffee Solutions at Novotel, a prominent player in the hospitality industry is one example where we deliver value, convenience and quality to hotel guests.
Selecta’s partnership with Mars, the leading confectionery player in Europe, has also driven significant growth in smart vending solutions across the UK, Belgium and Austria. Most recently, Selecta Austria took over the Mars machine park at 350 locations across the country. Together, we are optimizing self-service and offering innovative smart solutions to our consumers.
Selecta has also partnered with Coca-Cola to digitize Coca-Cola’s machine park across locations in the entertainment, education, and healthcare sectors in the UK. We are jointly creating a more modern experience for the Coca-Cola consumers.
In Selecta's birthplace, Switzerland, two important milestones have been reported in Q2 2023. The launch of the 100th «Coop to Go» Micromarket showcases Selecta’s strong local partnerships and the relevance this solution has for companies across the country. In addition, Selecta and SBB, the Swiss Federal Railways, continue their journey together with a renewed partnership. Selecta has built a relationship with SBB based on trust, reliability, and a clear focus on consumer satisfaction. Coupled with high-quality products and unparalleled service and expertise, Selecta’s "public vending" at railway stations was extended for another 7 years.
Sustainability at Selecta’s core
In line with its commitm ent to sustainability, Selecta reports strong progress acros s its sustainability initiatives. The company reports a 25% reduction in CO2 emissions from its operations compared to its 2019 baseline. The company has also expanded farm level programs, directly supported 1,371 farm ers across 5 markets and fostering a sustainable coffee supply chain. These accomplishments demonstrate Selecta's dedica tion to excellence, innovation, and environmental responsibility, marking a significant milestone on its journey towards a brighter and more sustainable future.
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 €43.8 million plus €109.5 million available RCF