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DGAP-News: DO & CO Aktiengesellschaft
/ Key word(s): Half Year Results
Results for the first half year 2020/2021 (1 April 2020 to 30 September 2020) - solely caused by COVID-19 - IMPROVED LIQUIDITY - REDUCED CASH BURN IN Q2 - AIRLINE and EVENT CATERING STILL LIMITED DUE TO TRAVEL RESTRICTIONS - RESTAURANTS AT PREVIOUS YEAR'S LEVEL, GOURMET RETAIL IN ROLLOUT - DO & CO FLAGSHIP-LOCATION IN MUNICH NEAR COMPLETION
VIENNA - 19 November 2020 - DO & CO Aktiengesellschaft is publishing its results under IFRS for the first half of the business year 2020/2021 today. A global economic downturn and the economic consequences due to the COVID-19 pandemic strongly affected revenue and the result. In the first half of the business year 2020/2021, the DO & CO Group recorded revenue of € 111.35m, representing a decrease of -78.1% or € -396.49m on the previous year. Despite all these things, in the General Meeting of Shareholders dated 31 July 2020, an "anticipatory resolution" was passed as a precautionary measure, authorising the Management Board to utilise a capital increase of up to a maximum amount of 10% of the share capital when required, even under exclusion of the subscription right. The exclusion of the subscription right guarantees a quick implementation of the liquidity measure, should this become necessary. Along with the capital increase approved in the General Meeting of Shareholders in 2018, the Management Board now has the power to increase the share capital by up to 20%. The EBITDA of the DO & CO Group was € 6.59m (PY: € 60.70m) in the first half of the business year 2020/2021. The EBITDA margin was 5.9% (PY: 12.0%). Consolidated earnings before interest and tax (EBIT) of the DO & CO Group amounted to € -31.58m for the first half of the business year 2020/2021, € -66.02m lower than in the same period of the previous year. The EBIT margin was -28.4% (PY: 6.8%). The net result decreased by € -52.22m from € 14.95m in the previous year to € -37.27m in the first half of the business year 2019/2020. Below, a detailed account is given on the development of the three divisions of the 1. AIRLINE CATERING
The Airline Catering locations reported a significantly decreased business development in the first half of the business year 2020/2021 due to the COVID-19 pandemic, which lead to a severe restriction of worldwide aviation. However, in the second quarter of the business year 2020/2021, revenue and result were significantly increased compared to the first quarter. The Airline Catering division accounted for revenue of € 78.81m (PY: € 361.88m) in the first half of the business year 2020/2021. This represents a decrease of -78.2% on the previous year. At € 6.66m EBITDA is less than the figure of the same period in the previous year by € -33.89m (-83.6%). EBIT amounts to € -15.05m (PY: € 22.06m). The decline in revenue and in the result is solely and exclusively attributable to the impact of the One positive development to be reported is that following the first COVID-19 shock and the shut downs in the individual countries, more and more quality-oriented airlines have again started to offer food on board as well as lounge services on the ground as passengers - particularly in the premium classes - had already become very dissatisfied. After the successful takeover of catering services on all British Airways long-haul flights ex London Heathrow in mid-May 2020, all short-haul flights were also taken over on The COVID-19 pandemic forced DO & CO to commence the development of new business models and products. In the Airline Catering division a new "Premium Box" concept was developed for several airlines due to the COVID-19 pandemic to reduce the interaction between crew and passengers. Flight attendants can now hand over the DO & CO product to the passengers without contact. Nevertheless, emphasis continues to be put on premium ingredients and fresh preparation exclusively as well as on biodegradable packaging. 2. INTERNATIONAL EVENT CATERING
As in all business units, business activities in the International Event Catering division also resumed considerably in the second quarter of the business year 2020/2021. However, revenue and result were still strongly affected in the first half of the business year 2020/2021 due to the impact of the COVID-19 pandemic. Revenue decreased by In the first quarter of the business year 2020/2021, all Formula 1 grand prix races were cancelled due to the COVID-19 pandemic and the start of the season was postponed to the second quarter. The first ten from a total of 17 scheduled races mostly took place without any spectators in the VIP area as well as in the public area. However, Liberty Media is evaluating a reopening of both guest areas on an ongoing basis. DO & CO also secured catering services for all Formula 1 teams as well as for the Formula 1 management for the first six races. In addition to providing culinary services for the individual teams with an overall concept being adapted to COVID-19, DO & CO was also responsible for supplying the entire event infrastructure of the individual hospitality areas. After all football matches for FC Bayern Munich, FK Austria Vienna and FC Red Bull Salzburg were cancelled in the first quarter or took place without any spectators, DO & CO provided culinary services for several matches during the second quarter. Also at the Olympic Park in Munich, several smaller events took place during the second quarter of the business year 2020/2021. For the first time, DO & CO took over the entire culinary services for the Film Festival at the Rathausplatz in Vienna. In the period from 4 July to 6 September 2020, visitors were able to enjoy various delights from around the world at eight gourmet stalls operated by DO & CO. 3. RESTAURANTS, LOUNGES & HOTEL
In several countries around the world, restaurants and hotels had to be closed due to the All DO & CO restaurants in Vienna have been reopened in mid-May 2020. Austria implemented a further lockdown for November 2020, with the economic implications being mitigated through government support measures. Encouragingly, revenue from the same period of the previous year was exceeded in the reopening phase. Only the Demel café at Vienna's Kohlmarkt remained closed in the first half of the business year 2020/2021. Moreover, the new retail concept "The Lazy Chef" was launched in the second quarter of the business year 2020/2021. Since August, ready-made meals of DO & CO restaurant quality, which can be easily and quickly prepared at home, have already been sold under the "The Lazy Chef" brand. In the first half of the business year 2020/2021, the Restaurants, Lounges & Hotel division accounted for revenue of € 17.21m (PY: € 67.89m), which translates into a decline of OUTLOOK a.) significantly cut fixed cost and therefore, achieve a maximal reduction of monthly cash burn, All decisions necessary to accomplish the goals mentioned above are taken in consideration of the fact that neither the duration / intensity of the crisis nor the pattern in which revenue will develop toward a pre-crisis level can be predicted. The Management Board is also working on financing solutions to mitigate the effects of an unforeseeable worst case scenario. Despite a reduction in revenue of almost 80%, the Management Board accomplished to keep the cash burn at a minimum. Investments have been made in promising projects like Furthermore, in the course of this diversification towards more B2C also two new restaurants as well as an exclusive boutique hotel will open at a prime location in Munich's inner city, situated in direct vicinity of the new brand store of DO & CO's long-standing partner and current UEFA Champions League winner FC Bayern Munich. By this also the "Lazy Chef" concept will be expanded to Munich in the course of the next quarter. Consequently, the Management Board is optimistic that DO & CO will emerge from this crisis with a great learning effect and a competitively viable structure that will enable it to further improve its pre-crisis market position. Investor Relations
Contact: Mag. Maximilian Nausch Group Legal Department
19.11.2020 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: | 1149296 |
| End of News | DGAP News Service |
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1149296 19.11.2020
