C O R P O R A T E N E W S

Results for the 2016/2017 business year (1 April 2016 to 31 March 2017)
  • Revenue and margins at previous year's level

odespite difficult market environment and negative currency effects

REVENUE

EUR

913.44m

- 0.3 %

EBITDA

EUR

91.89m

- 0.8 %

EBIT

EUR

56.24m

+ 1.3 %

VIENNA - 29 June 2017 - DO & CO Aktiengesellschaft is publishing its results under IFRS for the 2016/2017 business year (1 April 2016 to 31 March 2017) today.

In its 2016/2017 business year, the DO & CO Group recorded a revenue of € 913.44m, a decrease of -0.3% or € -3.02m over its previous business year, caused by negative currency effects of about € 48m (mainly Turkish lira and British pound). Adjusted by this the Group revenue increased by 5% compared to the previous year.

Revenue

BY 2016/17

in Mio €

BY 2015/16

in Mio €

Change in Mio €

Change

in %

Group revenue

913.44

916.47

-3.02

-0.3%

Airline Catering

597.46

631.26

-33.80

-5.4%

International Event Catering

146.33

117.68

28.65

24.3%

Restaurants, Lounges

& Hotel

169.66

167.52

2.13

1.3%

DO & CO is pleased to report, that despite a difficult market environment the Group's EBITDA and EBIT margin remained stable or was slightly increased compared prior year.

Group

BY 2016/17

in Mio €

BY 2015/16

in Mio €

Change in Mio €

Change

in %

Revenue

913.44

916.47

-3.02

-0.3%

EBITDA

91.89

92.68

-0.78

-0.8%

Depreciation/impairment

-35.66

-37.16

1.51

4.1%

EBIT

56.24

55.51

0.72

1.3%

Net Result

20.83

28.25

-7.42

-26.3%

EBITDA margin

10.1%

10.1%

EBIT margin

6.2%

6.1%

Employees

9,576

9,655

-79

-0.8%

The EBITDA of the DO & CO Group was € 91.89m (PY: € 92.68m). The EBITDA margin was 10.1% (PY: 10.1%). Consolidated earnings before interest and tax (EBIT) of the DO & CO Group amounted to € 56.24m for the 2016/2017 business year, € 0.72m higher than in the previous year. The EBIT margin was 6.2% (PY: 6.1%). The net result of the business year 2016/2017 amounts to € 20.83m (PY: € 28.25m).

Below, a detailed account is given on the development of the three divisions of the DO & CO Group:

  1. AIRLINE CATERING

    Airline Catering

    BY 2016/17

    in Mio €

    BY 2015/16

    in Mio €

    Change in Mio €

    Change

    in %

    Revenue

    597.46

    631.26

    -33.80

    -5.4%

    EBITDA

    70.63

    75.35

    -4.71

    -6.3%

    Depreciation/impairment

    -25.69

    -25.41

    -0.28

    -1.1%

    EBIT

    44.94

    49.94

    -4.99

    -10.0%

    EBITDA margin

    11.8%

    11.9%

    EBIT margin

    7.5%

    7.9%

    Share of Group Revenue

    65.4%

    68.9%

    In the business year 2016/2017, the Airline Catering division achieved a revenue of

    € 597.46m (PY: € 631.26m), a decline of 5.4% compared to the previous year. The division contributed 65.4% of the Group's overall revenue (PY: 68.9%). EBITDA and EBIT decreased during the business year 2016/2017 compared to the previous year due to a decline in revenue as well as an increase in amortisation/depreciation: at € 70.63m, EBITDA fell by € 4.71m (-6.3%) on the previous business year. EBIT declined from

    € 49.94m to € 44.94m (-10.0%). The EBITDA margin was 11.8% in the business year 2016/2017 (PY: 11.9%). The EBIT margin was 7.5% (PY: 7.9%).

    Throughout the business year 2016/2017, the Airline Catering division faced again a highly competitive and volatile market environment. Despite these difficult market conditions, DO & CO managed to retain the EBITDA margin and gain new customers.

    TURKEY

    The business year 2016/2017 was a challenging year for the Turkish location and the Turkish aviation industry. Substantial cost-saving programmes as well as negative currency effects led to a corresponding decline in revenue. The revenue in Turkey declines by -1.7% in Turkish lira. The devaluation of Turkish lira to the Euro results in a revenue decline of -12.2% in Euro in the consolidated income statement of DO & CO.

    After the catering contract with Turkish Airlines expired at the end of 2016 the contract was successfully extended for another two years, with a renewal option for Turkish Airlines for another year.

    AUSTRIA

    In the business year 2016/2017, the Austrian location reported stable revenues compared to the previous year. However at the end of the business year NIKI substantially reduced its fleet in Austria (only five of the previously 22 airplanes are based in Austria).

    US

    The location at New York's JFK Airport reported increased revenues, mostly with existing customers such as Etihad Airways, Emirates and Ukraine International Airlines. As of March 2017, for the first time deliveries are made to Lufthansa, the new customer at New York's JFK, with one daily flight to Munich and two daily flights to Frankfurt. DO & CO has therefore substantially improved its market position at this strategically important location. The unit at Chicago O'Hare, DO & CO's second location in North America increased its business on the previous year. With EVA Air, the company won another customer in the business year 2016/2017.

    GREAT BRITAIN

    The location at London Heathrow reported a revenue increase of +7.1% in British pound, however translated into Euro a revenue decline of -6.7%. This development is exclusively due to the depreciation of the British pound against the reporting currency. When using the local reporting currency, since the main portion of costs is incurred in local currency, margins remain basically unaffected by the depreciation of the British pound.

    GERMANY

    At the German locations (Frankfurt, Munich, Düsseldorf and Berlin), revenue surged thanks to an expansion of business with existing customers and the acquisition of new customers (acquired already in autumn 2015). In this context, it should also be reported that Thai Airways became a new customer towards the end of the business year 2016/2017 with two daily flights ex Frankfurt and one daily flight ex Munich.

    POLAND

    The Polish Airline Catering locations reported revenue increases as a result of expanded business activities with existing customers and the acquisition of new customers. It should be highlighted that the unit has won Air China as a new customer and has been catering for this customer in Warsaw since September 2016.

    UKRAINE

    The Airline Catering location in Kiev reports a strong decline in business. The considerable decline in the volume delivered to Ukraine International Airlines (the major customer at the Airline Catering location in Kiev) in the first half of the business year 2016/2017 led to a decline in revenue.

    ITALY

    At Milan's Malpensa, the business volume further increased which is particularly due to the existing customers Singapore Airlines and Oman Air. In April 2017 Thai Airways also became a new customer at this location.

  2. INTERNATIONAL EVENT CATERING

International Event Catering

BY 2016/17

in Mio €

BY 2015/16

in Mio €

Change in Mio €

Change

in %

Revenue

146.33

117.68

28.65

24.3%

EBITDA

11.79

9.30

2.49

26.8%

Depreciation/impairment

-5.07

-5.07

0.00

-0.1%

EBIT

6.72

4.23

2.49

58.9%

EBITDA margin

8.1%

7.9%

EBIT margin

4.6%

3.6%

Share of Group Revenue

16.0%

12.8%

The International Event Catering division generated a revenue of € 146.33m in the business year 2016/2017 (PY: € 117.68m). EBITDA was € 11.79m (PY: € 9.30m), with an EBITDA margin of 8.1% (PY: 7.9%). EBIT amounted to € 6.72m (PY: € 4.23m), and the EBIT margin was 4.6% (PY: 3.6%).

The strong revenue increase achieved in this division is particularly due to the European football championship UEFA EURO 2016 in France. DO & CO, respectively Hédiard Paris, was the Hospitality Production Management Company at one of the biggest sports events that has ever been held in Europe. In the course of this sports event, 110,000 VIP guests were treated with culinary delights during 51 football matches in 9 cities and 10 different stadiums.

DO & CO AG published this content on 29 June 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 29 June 2017 12:29:04 UTC.

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