DO & CO AKTIENGESELLSCHAFT C O R P O R A T E N E W S
Results for the Business Year 2020/2021
(1 April 2020 to 31 March 2021)
- Turnaround accomplished
- Back to a positive net result in Q3 and Q4 !
- US footprint significantly increased
- 10-yearcontract with Delta Air Lines in Detroit
- Jet Blue now also in Los Angeles, San Diego and Palm Springs
- participating in other major tenders
- € 100m additional liquidity through convertible bond at 1.75% interest
Divisions and Group | Q1 2020/2021 | Q2 2020/2021 | Q3 2020/2021 | Q4 2020/2021 | BY 2020/2021 | BY 2019/2020 | |
in m€ | in m€ | in m€ | in m€ | in m€ | in m€ | ||
Group revenue | 32.47 | 78.88 | 78.56 | 63.55 | 253.46 | 935.37 | |
Airline Catering | 23.93 | 54.88 | 55.69 | 54.11 | 188.61 | 670.33 | |
International Event Catering | 1.99 | 13.34 | 14.08 | 1.92 | 31.33 | 134.13 | |
Restaurants, Lounges & Hotels | 6.56 | 10.65 | 8.79 | 7.52 | 33.52 | 130.90 | |
EBITDA | -7.72 | 14.31 | 20.03 | 18.43 | 45.04 | 70.11 | |
Depreciation/impairment | -13.94 | -24.22 | -13.36 | -20.83 | -72.35 | -72.04 | |
EBIT | -21.66 | -9.92 | 6.67 | -2.40 | -27.31 | -1.92 | |
Net Result | -22.15 | -15.11 | 1.72 | 0.04 | -35.51 | -24.87 | |
EBITDA margin | -23.8% | 18.1% | 25.5% | 29.0% | 17.8% | 7.5% | |
EBIT margin | -66.7% | -12.6% | 8.5% | -3.8% | -10.8% | -0.2% | |
Employees | 7,771 | 8,191 | 8,445 | 7,725 | 7,988 | 10,726 | |
VIENNA - 17 June 2021 - DO & CO Aktiengesellschaft is publishing its results under IFRS for the business year 2020/2021 today. A global economic downturn and the economic consequences due to the COVID-19 pandemic strongly affect revenue and the result. In the business year 2020/2021, the DO & CO Group recorded revenue in the amount of € 253.46m, representing a decrease of 72.9% or € 681.91m on the previous year. The EBITDA of the DO & CO Group was € 45.04m (PY: € 70.11m) in the business year 2020/2021. The EBITDA margin was 17.8% (PY: 7.5%). Consolidated earnings before interest and tax (EBIT) of the DO & CO Group amounted to € -27.31m for the business year 2020/2021, € 25.38m lower than in the same period of the previous year. The EBIT margin was -10.8% (PY: -0.2%).
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The net result decreased by € 10.63m from € -24.87m in the previous year to € -35.51m in the business year 2020/2021. The decline in revenue and in the result is solely and exclusively attributable to the impact of the COVID-19 pandemic.
While the first quarter of the business year 2020/2021 saw a total standstill and massive restructuring measures, in the second quarter, all three divisions reported an initial slow recovery and resumption of business activities. The restructuring measures immediately initiated by the Management Board have proven effective. It was already possible to significantly increase revenue and result in the second quarter, when compared with the first quarter of the business year 2020/2021. Despite very tough market conditions, new lockdowns and uncertainties due to the COVID-19 pandemic, it was even possible to achieve a positive net result again in the third and fourth quarters of the business year 2020/2021 thanks to rigorous cost management.
Due to the impact of the COVID-19 pandemic, the Management Board decided to propose to the General Meeting of Shareholders that no dividend shall be distributed for the business year 2020/2021.
A detailed account on the development of the three divisions of the DO & CO Group is given below:
1. AIRLINE CATERING
Airline Catering | BY 2020/2021 | BY 2019/2020 | Change | Change |
in m€ | in m€ | in m€ | in % | |
Revenue | 188.61 | 670.33 | -481.72 | -71.9% |
EBITDA | 33.84 | 42.89 | -9.06 | -21.1% |
Depreciation/impairment | -43.25 | -44.96 | 1.71 | 3.8% |
EBIT | -9.41 | -2.07 | -7.35 | -355.7% |
EBITDA margin | 17.9% | 6.4% | ||
EBIT margin | -5.0% | -0.3% | ||
Share in consolidated revenue | 74.4% | 71.7% | ||
The Airline Catering locations reported a significantly decreased business development in the business year 2020/2021 due to the COVID-19 pandemic, which led to severe restrictions in worldwide aviation. After a considerable slump in the first quarter, revenue und result improved to a steady level in the second to fourth quarters of the business year 2020/2021.
Nevertheless, the Airline Catering division records a massive decline in revenue of 71.9% due to the unfavourable market environment. Revenue in the business year 2020/2021
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only amounts to € 188.61m (PY: € 670.33m). The Airline Catering division's revenue
constituted 74.4% of the Group's overall revenue (PY: 71.7%). Altogether, the 33 gourmet kitchens operated by the DO & CO Group around the globe catered for more than 31 million passengers on over 238,000 flights.
At € 33.84m, EBITDA thus is € 9.06m or 21.1% below the figure of the same period of the previous year. EBIT amounts to € -9.41m (PY: € -2.07m). The EBITDA margin was 17.9% in the business year 2020/2021 (PY: 6.4%). The EBIT margin is -5.0% (PY: -0.3%). The decline in revenue and in result is solely and exclusively attributable to the impact of the COVID 19 pandemic.
With regard to the development, the following is worth noting:
DO & CO wins the catering tender for Delta Air Lines in Detroit
DO & CO is proud to have acquired Delta Air Lines as a new customer, who, in terms of sales, is the largest airline in the world. For a period of ten years starting on 16 March 2021, DO & CO will be the sole hub caterer for the entire on-board services on all short-haul and long-haul flights ex Detroit, one of the largest and most important locations of Delta Air Lines. The contractual partnership represents one of the decisive milestones in DO & CO's implementation of its expansion plans in the US. The newly formed alliance with Delta Air Lines demonstrates that even during difficult times, customers continue to value innovation, high product and service quality, efficient logistics, as well as operational reliability.
Successful takeover of catering services for British Airways
In the previous business year 2020/2021, DO & CO once again demonstrated its operational reliability by taking over the entire catering of British Airways ex London Heathrow. 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 15 September 2020. At the same time, the largest gourmet kitchen in Europe with an area of more than 34,000 sqm was opened in London and became fully operational.
Early catering contract extension with Austrian Airlines
DO & CO and Austrian Airlines continue their partnership which has been in place since 2007. The catering contract expiring at the end of 2021 has now been extended until the end of 2027. As a catering partner, DO & CO will therefore continue to cater for all
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Austrian Airlines passengers on medium-haul flights of more than three hours, on long-haul flights ex Vienna, on Austrian Holidays charter flights as well as in business class on European flights. Starting in the spring of 2021, economy class passengers are also able to choose from a selection of high-quality and freshly produced meals of the exclusive DO & CO brand "Henry for Austrian" on short-haul flights.
Win of numerous new airline catering customers
Despite the devastating impact of the COVID-19 pandemic on the aviation industry, DO & CO is continuing to expand its position as a premium airline caterer. In addition to Delta Air Lines in Detroit, DO & CO was able to acquire a number of renowned new customers at various locations in the business year 2020/2021:
| Jet Blue | ex Los Angeles, San Diego und Palm Springs | |
| American Airlines | ex Detroit | (acquired in Q4 20/21) |
| Spirit Airlines | ex Detroit | (acquired in Q4 20/21) |
| Qatar Airways | ex Madrid | |
| IB Express buy-on-board | ex Madrid | (acquired in Q4 20/21) |
| Etihad | ex Los Angeles und Chicago | |
All Nippon Airways (ANA) | ex Frankfurt und München | (acquired in Q4 20/21) | |
| Mongolian Airlines | ex Frankfurt | (acquired in Q4 20/21) |
| Air Premia | ex Incheon | |
| Bees Airlines | ex Kiev | (acquired in Q4 20/21) |
2. INTERNATIONAL EVENT CATERING
International | BY 2020/2021 | BY 2019/2020 | Change | Change |
Event Catering | in m€ | in m€ | in m€ | in % |
Revenue | 31.33 | 134.13 | -102.80 | -76.6% |
EBITDA | 11.36 | 14.37 | -3.01 | -21.0% |
Depreciation/impairment | -4.64 | -6.94 | 2.30 | 33.2% |
EBIT | 6.72 | 7.43 | -0.71 | -9.5% |
EBITDA margin | 36.3% | 10.7% | ||
EBIT margin | 21.5% | 5.5% | ||
Share in consolidated revenue | 12.4% | 14.3% | ||
Business activities in the International Event Catering division picked up again particularly in the second and third quarters of the business year 2020/2021. However, revenue and result in the business year 2020/2021 were still strongly affected by the impact of the COVID-19 pandemic.
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The International Event Catering division generated revenue of € 31.33m (PY: € 134.13m) in the business year 2020/2021. In the business year 2020/2021, the International Event Catering division's EBITDA stands at € 11.36m (PY: € 14.37m). The EBITDA margin is 36.3% (PY: 10.7%). EBIT is € 6.72m in the business year 2020/2021 (PY: € 7.43m). The EBIT margin is 21.5% (PY: 5.5%).
With regard to the development, the following is worth noting:
Premium events despite the COVID-19 pandemic
In the business year 2020/2021, DO & CO has proven that, even under the toughest restrictions, it is possible to host top-class events. Owing to the development of new concepts ensuring the safety of guests and employees, culinary pleasure has not come up short despite the COVID-19 pandemic, whether at Formula 1 races across the world, at the ATP tennis tournament or the Vienna Film Festival.
3. RESTAURANTS, LOUNGES & HOTELS
Restaurants, Lounges | BY 2020/2021 | BY 2019/2020 | Change | Change |
& Hotels | in m€ | in m€ | in m€ | in % |
Revenue | 33.52 | 130.90 | -97.38 | -74.4% |
EBITDA | -0.16 | 12.85 | -13.00 | -101.2% |
Depreciation/impairment | -24.46 | -20.14 | -4.33 | -21.5% |
EBIT | -24.62 | -7.29 | -17.33 | -237.7% |
EBITDA margin | -0.5% | 9.8% | ||
EBIT margin | -73.5% | -5.6% | ||
Share in consolidated revenue | 13.2% | 14.0% | ||
The Restaurants, Lounges & Hotels division is the beating heart of the DO & CO Group, serving as a centre of innovation and as a benchmark for quality, as well as the standard bearer of the Group. The division comprises the business units restaurants and Demel café, lounges, hotels, staff restaurants, retail and airport gastronomy.
In several countries around the world, restaurants and hotels had to be closed due to the COVID-19 pandemic towards the end of the business year 2019/2020, and along with air traffic, the operation of airline and airport lounges also had to be suspended. Consequently, revenue and results in this division also significantly decreased.
In the business year 2020/2021, the Restaurants, Lounges & Hotels division accounted for revenue of € 33.52m (PY: € 130.90m), which translates into a revenue decrease of € 97.38m or 74.4%. EBITDA is € -0.16m (PY: € 12.85m). The EBITDA margin stands at
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DO & CO AG published this content on 17 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 June 2021 07:03:02 UTC.
