Vending
Pandemic clips Selecta’s Q4 2020 and FY2020 sales, earnings
April 13, 2021
Selecta, Europe's leading route-based self-service retailer, reported sales and earnings declined for the full year in 2020 and for the fourth quarter as the company's financial performance continued to be impacted by COVID-19 as lockdown measures tightened across most geographies, according to a press release.
2020 sales declined by 30.4% to €1,007.7 million ($12 million), over the prior year.
Adjusted earnings before interest, taxes, depreciation and amortization for the year was €85.1 million ($101.6 million), with strong cost management resulting in a total cost reduction of over €80 million ($95.51 million).
For the fourth quarter of 2020, sales fell 31.4% from €360.4 million ($430.26 million) to €247.4 million ($295.36 million).
Adjusted earnings before interest, taxes, depreciation and amortization fell 25.9% from €38.1 million ($45.49 million) to €28.2 million ($33.67 million) for Q4.
Sales per machine per day declined 25.9% in the private channel, 22.8% in the public channel and 38.3% in the semi public channel for 2020.
The company continued rollout of its One Selecta go-to market strategy and transition to a "GLOCAL" model client-centric approach and culture to optimize client retention and acquisition.
The company secured a five-year partnership agreement signed with Nestle to roll out Starbucks premium self-service coffee concept across Europe.
The company also signed an exclusive partnership with Instant Systems Sweden to expand "smart fridges" across Europe, offering fresh and convenient food, salads, sandwiches, snacks and coffee at the workplace.
"In Q4 we continued to make good progress in the execution our transformational One Selecta strategy, driven by a new, experienced leadership team and underpinned by a strong corporate culture," Joe Plumeri, executive chairman, said in the release. "This is supported by our successful transition to a 'GLOCAL' model focused on local markets delivering great service and global functions delivering efficiency."
For an update on how the coronavirus pandemic has affected the convenience services industry, click here.
