Selecta Group Q2 FY19 Results

“FY guidance upgraded after continued success in the first half of 2019”

Cham, 23. May 2019, Selecta Group, the leading route-based unattended self-service retailer in Europe, announces its Q2 2019 results for the three months ended 31 March 2019.

Q2 Financial Highlights

  • Revenue increased by 7.2% to €408.6m1 (Q2 FY18: €381.1m), with an acceleration in organic revenue growth, up 2.6% in Q2 FY19 vs Q2 FY18, and up 6.3% excluding turnaround markets France and the UK
  • Underlying EBITDA rose by 16.8% to €68.9m1 (Q2 FY18: €59.0m), achieved alongside continued investment in growth initiatives and the benefit of the synergy programme
  • Underlying EBITDA less net capex of €36.5m1 , up 13.6% (Q2 FY18: €32.4m), which was achieved whilst continuing to invest in future growth

1 at constant currency

Q2 Achievements

  • Eleventh consecutive quarter delivering to expectations and fifth consecutive quarter of consistent progress whilst integrating transformational acquisitions
  • Customer retention rate reached 95.8%, reflecting our successful focus on contract renewals
  • Continued drive on innovation:
    • 110 MicroMarkets sold at end March 2019
    • Touchscreen technology pilot programmes trialled in France and Switzerland
  • Awarded the 2019 prize for Operational Excellence by MEDEF (French Confederation of Industry) in partnership with AFQF in France
  • Focus on enhanced employee engagement programme, including bespoke training programmes for sales managers and leaders
  • Continued investment in technology and systems to increase efficiencies
    • Telemetry devices now installed in more than 65,000 vending machines, an 80% increase on the prior year
  • M&A programme on track to deliver 3–5% annualised growth target

David Flochel, Chief Executive Officer, said:

“I am delighted to report the business built on its good start to the year and carried that positive momentum throughout the second quarter. As a result, Selecta has now delivered on expectations for 11 successive quarters

“I am particularly pleased the Group has reached 95.8% customer retention rate, which reflects our customer focused approach and the engagement of our teams, supported by operational and sales excellence programme. In addition, our new business pipeline remains healthy and we have accelerated the number of new business wins and grown our portfolio.

“Powered by our unique route-based business model, scale and focus on strategic initiatives, Selecta is strongly positioned to continue to gain market share both organically and through selective acquisitions. We remain very confident in the future success of the business and as a result we have upgraded our 2019 full year revenue growth to 6.0%, underlying EBITDA to between €270-€275m and our cash flow guidance to between €90m to €100m.”