DO & CO AKTIENGESELLSCHAFT P R E S S I N F O R M A T I O N
RESULT FOR THE 2010/2011 BUSINESS YEAR
(1 APRIL 2010 to 31 MARCH 2011)
- further increase in sales and revenues
- quality strategy generates strong international growth
- new "HENRY" gourmet brand about to expand
- successful double listing on stock exchanges in Istanbul and Vienna
VIENNA - 7 June 2011 - DO & CO Restaurants & Catering AG is announcing today the results in accordance with IFRS for the 2010/2011 business year (1 April 2010 to
31 March 2011).
In its 2010/2011 business year, the DO & CO Group achieved sales of EUR 426.07 million, an increase of 20.8% or EUR 73.32 million over the previous year.
Sales by division | BY 2010/11 in Mio € | BY 2009/10 in Mio € | Change in Mio € | Change in % |
Airline Catering | 327.18 | 258.56 | 68.62 | 26.5% |
International Event Catering | 36.65 | 34.00 | 2.65 | 7.8% |
Restaurants, Lounges & Hotel | 62.24 | 60.19 | 2.05 | 3.4% |
Group sales | 426.07 | 352.74 | 73.32 | 20.8% |
At the same time, the DO & CO Group also managed to significantly increase its re-
sults on a year-on-year basis.
Group | BY 2010/11 in Mio € | BY 2009/10 in Mio € | Change in Mio € | Change in % |
Sales | 426.07 | 352.74 | 73.32 | 20.8% |
EBITDA | 45.84 | 36.03 | 9.82 | 27.2% |
Depreciation/amortization | -17.52 | -17.46 | -0.06 | -0.4% |
EBIT | 28.32 | 18.57 | 9.75 | 52.5% |
EBITDA margin | 10.8% | 10.2% | ||
EBIT margin | 6.6% | 5.3% | ||
Employees | 3,794 | 3,542 | 252 | 7.1% |
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Consolidated earnings before interest and tax (EBIT) for the DO & CO Group were EUR 28.32 million in the 2010/2011 business year, or EUR 9.75 million higher than in the previous year. The EBIT margin could be increased from 5.3% in the year before to 6.6% in the 2010/2011 business year.
EBITDA for the DO & CO Group was EUR 45.84 million, a rise of EUR 9.82 million over the previous year. The EBITDA margin could be boosted from 10.2% in the year be- fore to 10.8% in the 2010/2011 business year.
Below, a detailed account is given of the development of the three divisions of the
DO & CO Group:
1. AIRLINE CATERING
Airline Catering | BY 2010/11 in Mio € | BY 2009/10 in Mio € | Change in Mio € | Change in % |
Sales | 327.18 | 258.56 | 68.62 | 26.5% |
EBITDA | 36.90 | 27.67 | 9.23 | 33.4% |
Depreciation/amortization | -14.75 | -14.48 | -0.27 | -1.9% |
EBIT | 22.14 | 13.19 | 8.96 | 67.9% |
EBITDA margin | 11.3% | 10.7% | ||
EBIT margin | 6.8% | 5.1% | ||
Share in consolidated sales | 76.8% | 73.3% |
In the 2010/2011 business year, the Airline Catering division reported sales of EUR 327.18 million, corresponding to a growth rate of 26.5% over the previous year. The division's contribution to Group sales rose from 73.3% in 2009/2010 to 76.8% at present. Altogether, DO & CO gourmet kitchens worldwide supplied culinary delights to more than 56 million passengers on about 390,000 flights.
The positive performance achieved by DO & CO's Airline Catering division is remark- able when seen against a background of the airline industry's sustained dynamic yet volatile development. DO & CO has been able to quickly and successfully adapt to new market conditions and met with enthusiastic acceptance of its innovative solutions by its customers. The requisite reorganisation measures and cost reduction programmes were consistently implemented, and DO & CO could exploit the market's sheer dyna- mism and gain numerous new customers thanks to its innovative quality products and
competitive prices.
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EBITDA and EBIT improved considerably over the previous year. At EUR 36.90 million, EBITDA is EUR 9.23 million (+33.4%) over last year's figure. The EBITDA margin in- creased from 10.7% in to 11.3% in the 2010/2011 business year. EBIT grew from
13.19 million to EUR 22.14 million (+67.9%). The division's EBIT margin was boosted
from 5.1% to 6.8% in this business year.
DO & CO's strategy to serve the market by innovative quality products and competi- tive prices gained it many new customers, but also intensified relations with our stock of existing customers. Of particular note is the new contract entered with Emirates at London Heathrow which covers five flights per day from London to Dubai, i.a. on the Airbus A-380, the world's largest passenger plane. DO & CO handles the catering for all three passenger categories. Other new customers welcomed by us were Gulf Air, Jet Airways, China Airlines, Oman Air, Asiana Airlines and Cyprus Airways. We find that our endeavours to offer better service and product quality at competitive prices are greatly appreciated by international airlines.
Altogether, developments in the two home carrier countries Turkey and Austria were highly satisfactory. While the overall market in Austria grew at a moderate pace, the Turkish market reported strong growth rates thanks to a fleet expansion at Turkish Airlines as well as third-party customers.
2. INTERNATIONAL EVENT CATERING
International Event Catering | BY 2010/11 in Mio € | BY 2009/10 in Mio € | Change in Mio € | Change in % |
Sales | 36.65 | 34.00 | 2.65 | 7.8% |
EBITDA | 4.32 | 3.97 | 0.35 | 8.8% |
Depreciation/amortization | -1.05 | -0.97 | -0.08 | -7.9% |
EBIT | 3.27 | 2.99 | 0.27 | 9.2% |
EBITDA margin | 11.8% | 11.7% | ||
EBIT margin | 8.9% | 8.8% | ||
Share in consolidated sales | 8.6% | 9.6% |
In the 2010/2011 business year, sales of the International Event Catering division grew by EUR 2.65 million to EUR 36.65 million (compared to EUR 34.00 million in the previous business year), which provides for a plus of 7.8%.
In the past year, DO & CO once again partnered with organisers of many major sports events, among them the Champions League final and the ATP tennis tournament in Madrid, with more than 35,000 guests already one of the largest hospitality events in global sports.
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Other major events successfully catered for by DO & CO were the CHIO World Eques- trian Festival in Aix-la-Chapelle, many ski races (including Kitzbühel and Schladming), the Beach Volleyball Grand Slam tournament in Klagenfurt, and the Formula One Pad- dock Club. A newcomer among our customers was the International Basketball Fed- eration FIBA which organised the basketball world championship in Turkey.
In the 2010/2011 business year, the International Event Catering division recorded an EBITDA of EUR 4.32 million, higher than that of the previous year (EUR 3.97 million). At 11.8%, the EBITDA margin was about the same as last year (11.7%). EBIT rose from EUR 2.99 million to EUR 3.27 million, while at 8.9% the EBIT margin was at last year's level (8.8%).
3. RESTAURANTS, LOUNGES & HOTEL
Restaurants, Lounges & Hotel | BY 2010/11 in Mio € | BY 2009/10 in Mio € | Change in Mio € | Change in % |
Sales | 62.24 | 60.19 | 2.05 | 3.4% |
EBITDA | 4.63 | 4.39 | 0.24 | 5.4% |
Depreciation/amortization | -1.72 | -2.01 | 0.29 | 14.3% |
EBIT | 2.91 | 2.39 | 0.52 | 21.9% |
EBITDA margin | 7.4% | 7.3% | ||
EBIT margin | 4.7% | 4.0% | ||
Share in consolidated sales | 14.6% | 17.1% |
In the 2010/2011 business year, the Restaurants, Lounges & Hotel division posted sales of EUR 62.24 million, a plus of EUR 2.05 million or 3.4% over the previous year.
The Restaurant segment can therefore also look back at a highly satisfactory year. In particular it was the DO & CO restaurants and coffeehouses, but also the lounges which generally did excellent business, with the Emirates lounge at London Heathrow achieving an outstanding performance.
The DO & CO Hotel in Vienna again reports good capacity utilisation rates, demon-
strating that in this division too the Company's quality-focused strategy is appreciated by the market.
Another newcomer to the division's portfolio of business activities is the "Henry" gourmet brand which has obtained the Group its first line of own gourmet shops. The first "Henry" shop, launched in Vienna in late October, is very promising. Its concept of delivering healthy and fresh "to go" products has met with an enthusiastic welcome
from the very start and will thus be expanded.
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EBITDA of the Restaurants, Lounges & Hotel division grew from EUR 4.39 million in the previous business year to EUR 4.63 million in the year under review. At 7.4%, the EBITDA margin is at the past year's level (7.3%). EBIT rose by EUR 0.52 million to EUR 2.91 million. At 4.7%, the EBIT margin increased over the previous year (4.0%).
DO & CO STOCK
In the 2010/11 business year, the DO & CO stock price rose by 88.4% from
EUR 16.00 to EUR 30.15 at the Vienna Stock Exchange, thus almost repeating its
100% increase of the previous year. The growing price in combination with the Com- pany's capital increase boosted this year's market capitalisation from EUR 122.62 mil- lion to EUR 293.78 million. Notable events were the successful second listing at the Istanbul Exchange and a change in free floats from 19% to 47.05%.
In the third quarter of the 2010/2011 business year, a capital increase raised the number of shares issued by DO & CO Restaurants & Catering AG from 7,795,200 to
9,744,000. The subscription price was set at EUR 21.90. The new shares were first traded at the stock exchanges of Istanbul and Vienna on 2 December 2010. DO & CO is the first foreign company to have a second listing at the Istanbul Exchange (ISE).
Since its first quotation on the Istanbul Exchange, the DO & CO stock has managed to perform very well, rising by 49.3% from TRY 43.20 to TRY 64.50. Since its initial plac- ing, the Istanbul Exchange trades TRY 7.98 million in shares daily on average.
OUTLOOK
Although the Airline Catering division is currently finding its market environment sta- bilised in the aftermath of the economic and financial crisis, we still need to expect ongoing volatility in the general market. Nevertheless, based on its flexibility, innova- tive power, competitive cost structure and a company culture driven by the demand to add value for its customers, DO & CO considers that it will be able to further expand its business.
DO & CO has established itself - also in past crisis situations - as a reliable partner for the airline industry, and thus expects that airlines will continue to make use of the
range of DO & CO services. In addition to the quality focus stressed by DO & CO's
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gourmet kitchens they operate at full capacity and thus are able to offer highly com- petitive prices.
The International Event Catering division, in addition to handling events for many business and private customers, always has many major international events on its schedule. Next to formula 1 catering, DO & CO again does the catering for several sports events of a global scale, such as the Champions League final in Wem- bley/London a few days ago.
For the third time in succession (after Portugal in 2004 and Austria/Switzerland in
2008), DO & CO will handle the VIP catering at a European football championship. Preparations to operate as UEFA's exclusive caterer and hospitality partner for the EURO 2012 in Poland and Ukraine are in full swing.
The Restaurants, Lounges and Hotel division also has some further growth pencilled in: As of July 2011, DO & CO will take over the Turkish Airlines lounge in Istanbul. Some 3,000 m² at Istanbul's Ataturk Airport will be dedicated to one of the most in- novative and state-of-the-art lounges worldwide, to be operated by Turkish DO & CO, a joint venture of Turkish Airlines and DO & CO.
Moreover, the Restaurants, Lounges and Hotel division is stepping up work to expand its new retail segment. Based on the experience gathered at the first shop in Vienna, the new "Henry" gourmet brand will expand to more locations, starting out in Vienna and later on an international scale. This concept offers excellent prospects for the fu- ture, as we already have the key infrastructure, such as production and logistics, in place at 19 locations worldwide which will provide an excellent basis for the expan- sion. This concepts allows DO & CO to further improve capacity utilisation rates at its own gourmet kitchens and at the same time opens up a new business field.
As to acquisitions, we are pleased to report that intense talks are being held with po- tential cooperation partners and the first deals can be expected in the current busi- ness year.
Generally, the DO & CO management is highly confident that it can continue the suc- cessful performance of the past years, expecting that the Company will further add to
its current portfolio of business activities. A focus on innovation, superior product and
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service standards together with excellently trained and motivated staff provide the key ingredients for DO & CO to achieve growth driven by quality and a focus on add- ing value.
Investor Relations:
DO & CO Restaurants & Catering AG Mag. Daniela Schrenk | ISIN Security abbrevation | AT0000818802 DOC, DOCO |
Reuters | DOCO.VI, DOCO.IS | |
Dampfmühlgasse 5 | Bloomberg | DOC AV, DOCO. TI |
1110 Wien | Number of Shares Listed nominal | 9,744,000 19,488,000 EUR |
Phone: (01) 74 000-0 | Indices | ATX Prime, ISE100 |
Fax: (01) 74 000-1029 | Official quotation | Vienna, Istanbul |
E-mail: investor.relations@doco.com Internet: www.doco.com | Currency Initial listing | EUR, TRY 30.06.1998 (VSE) |
02.12.2010 (ISE) |
Finanzkalender:
07.07.2011 General Meeting of Shareholders
11.07.2011 Ex-dividend date
25.07.2011 Payable date
18.08.2011 Results of the first quarter of 2011/2012
17.11.2011 Results of the first half year of 2011/2012
09.02.2012 Results of the first three quarters of 2011/2012
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