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DGAP-News: DO & CO Aktiengesellschaft
/ Key word(s): Quarter Results
  Results for the first quarter of 2020/2021 - Strong negative impact on first quarter ( revenue -86.9% - Decline in revenue and result solely due to COVID-19 - Reacted quickly and took all necessary actions : - Takeover of catering services for British Airways in London Heathrow and - New five-year contract with Formula 1 signed - Restaurants almost on previous year's level, new restaurant and hotel project at top location in Munich Â
The first quarter of the business year 2020/2021 is characterised by the unprecedented impact of the COVID-19 pandemic. Despite the DO & CO Group operating in 21 countries in three different divisions with various distribution channels, all business activities were all of a sudden affected at the same time and brought the entire business to a standstill. The imposed governmental restrictions forced DO & CO to close all its restaurants around Due to the impact of the COVID-19 pandemic, the Management Board, immediately after the beginning of the crisis, resolved on an extensive set of unpleasant and difficult measures to reduce fixed costs, which was instantly implemented in the first quarter of the business year 2020/2021. In addition to reducing fixed costs, the organisation was quickly adjusted to the new market conditions and additional liquidity was secured. Knowing that particularly the Airline Catering business in its original form might remain affected for a longer period of time, the development of new business models was commenced in all divisions. This is intended to enhance the competitive advantages - innovation, highest quality and consistent production at high volumes - and increase DO & CO's flexibility. The capacity of gourmet kitchens around the world is better utilised and new channels of distribution (particularly in the B2C area) can be tapped with only manageable investments. All measures required to protect highly skilled employees and to secure the business have been taken. In cooperation with various regulatory authorities, it was also possible to slowly start a secure and well-organised resumption of business activities in the first quarter of the business year 2020/2021.
The EBITDA of the DO & CO Group was € -7.72m in the first quarter of the business year 2020/2021 (PY: € 28.10m). The EBITDA margin was -23.8% (PY: 11.4%). Consolidated earnings before interest and tax (EBIT) of the DO & CO Group amounted to € -21.66m, thus € -37.25m lower than in the same period of the previous year. The EBIT margin was -66.7% (PY: 6.3%). The net result decreased by € -27.84m from € 5.68m in the previous year to € -22.15m in the first quarter of the business year 2020/2021. Below, a detailed account is given on the development of the three divisions of the DO & CO Group: 1. AIRLINE CATERING
The Airline Catering locations reported a significantly decreasing business development due to the COVID-19 pandemic, which lead to an almost worldwide suspension of aviation. Against this backdrop and due to the unfavourable market environment, the Airline Catering division generated revenue of € 23.93m (PY: € 173.28m) in the first quarter of the business year 2020/2021, meaning a decline of -86.2% on the previous year. At Nevertheless, there are also favourable developments to be reported. The takeover of the entire catering services for British Airways at London Heathrow is in full swing. Already on 12 May 2020, DO & CO successfully and without delays took over catering services on all British Airways long-haul flights ex London Heathrow. This is a proof of high operational reliability and secure processes. The takeover of the entire short-haul routes is scheduled for mid-September. Prior to that, one of the most modern and largest gourmet kitchens in Europe with an area of more than 35,000 sqm in London will be opened and become fully operational. The COVID-19 pandemic forced DO & CO to commence the development of new business models and products also in the Airline Catering division. In this context, a new "Premium Box" concept was developed for British Airways due to the COVID-19 pandemic in order to reduce the interaction between crew and passengers. Flight attendants can thus hand over the DO & CO product to the passengers without contact. Nevertheless, emphasis also continues to be put on premium ingredients and fresh preparation exclusively as well as on biodegradable packaging. 2. INTERNATIONAL EVENT CATERING
Revenue and result of the International Event Catering division are also strongly affected due to the impact of the COVID-19 pandemic. All Formula 1 grand prix races in the first quarter of the business year 2020/2021 were cancelled due to the COVID-19 pandemic, and the start of the season was postponed to the second quarter of the business year 2020/2021. Moreover, all football matches of Against this backdrop and due to the unfavourable market environment, revenue decreased by -95.1% on the previous year from € 40.47m to € 1.99m. At € -0.59m, EBITDA is below the figure of the same period of the previous year by € -6.19m 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 results significantly decreased also in this division. In the first quarter of the business year 2020/2021, the Restaurants, Lounges & Hotel division accounted for revenue of € 6.56m (PY: € 33.79m), which translates into a decline of -80.6% on the previous year. At € -3.18m, EBITDA is below the figure of the same period of the previous year by € -7.24m (-178.4%). EBIT amounts to € -5.79m However, a pleasing development is that following the relaxation of COVID-19 restrictions on 15 May 2020, all DO & CO restaurants in Vienna were successfully reopened. Revenue from the same period of the previous year was even partially exceeded. Only the Demel café at Vienna's Kohlmarkt will remain closed until further notice. OUTLOOK International air traffic is still strongly reduced, many countries continue to maintain strict measures to prevent the further spread and travel restrictions are still in place, which are adapted to the current number of infections on an ongoing basis. In the coming quarters of the business years 2020/2021, the net result will generally be strongly affected by the COVID-19 situation as well. At present, future developments are still very difficult to predict and depend on further decisions of the respective governments. Ever since the beginning of the crisis, DO & CO has acted quickly and attempted to prepare in the best possible way for future market requirements and the lower volumes relating thereto. Innovation, efficiency improvements and flexibility are the drivers to cope with this crisis. The business model is continuously adjusted and especially the development of existing and new B2C distribution channels is promoted. To counter these risks in the best possible way, further group-wide restructurings will be indispensable as well. In the course of the ordinary General Meeting of Shareholders dated 31 July 2020, a resolution was passed, authorising the Management Board to resolve on a capital increase by up to 10% of the share capital, even under exclusion of the subscription right, at any time. The exclusion of the subscription right guarantees a quick implementation of the liquidity measure. DO & CO also continues cooperating actively with regulatory and industry organisations to propose and develop new operating regulations in order to ensure the health and safety of customers as well as employees. The industry will adapt to new requirements the same way as it adapted to the developments with regard to safety requirements in the past.
A favourable development can also be noted in the Airline Catering division. Following the first COVID-19 shock and the shut down in the individual countries, more and more quality-oriented airlines are again starting to serve food on board as passengers - particularly in the premium classes - have already become very dissatisfied. It can no longer be explained, why - despite complying with all COVID-19 measures - passengers are not being offered anything. At the same time, the development of new and innovative distribution solutions was commenced to achieve a higher personalisation and better commercial conditions. Despite DO & CO being particularly affected by the pandemic in all divisions and countries at a time, the Management Board is convinced that the strong innovative power, the flexible corporate culture and a very focused team will cope very well with the challenges of the competition, and DO & CO will emerge stronger from this crisis. Finally, the following events should be highlighted: Takeover of the entire catering services for British Airways Start of the Formula 1 season 2020 New retail concept "The Lazy Chef" Extension of the cooperation with FC Bayern Munich - FC Bayern Munich brand store | DO & CO Hotel | DO & CO restaurants in the centre of Munich Investor Relations
  Contact: Mag. Daniela Schrenk Group Legal Department
12.08.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
| Language: | English |
| Company: | DO & CO Aktiengesellschaft |
| Stephansplatz 12 | |
| 1010 Wien | |
| Austria | |
| Phone: | +43 (1) 535 0644 1010 |
| Fax: | +43 (1) 74000-1089 |
| E-mail: | |
| Internet: | |
| ISIN: | AT0000818802 |
| WKN: | 81880 |
| Listed: | Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt, Munich, Stuttgart, Tradegate Exchange; London, Vienna Stock Exchange (Official Market) |
| EQS News ID: | 1115861 |
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| End of News | DGAP News Service |
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1115861Â Â 12.08.2020Â
