Vending

Selecta Group’s Q1 2021 sales improve despite dip

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May 25, 2021

Selecta Group, Europe's largest route based retailer, reported Q1 2021 results were strongly ahead of last year and ahead of expectations, despite the impact of COVID-19, the company announced in an earnings release.

Although quarterly sales of €234.5 million ($286.81 million) were down 26.6% versus last year for the quarter ending March 31, 2021, March 2021 sales were positive for the first time since the pandemic started.

Sales were impacted by different lockdown measures, with toughest conditions seen in Spain, U.K., and France, while Italy and Switzerland were the most resilient.

The public channel has been the most resilient business channel of the group, driven by the petrol business.

Different trends impacted the private channel. The service industry remained challenged, while manufacturing and small businesses showed improvement.

The semi-public channel was particularly impacted by partial closures in universities, schools and hospitals.

Adjusted earnings before interest, taxes, depreciation and amortization of €33.8 million ($41.34 million) increased 17.9% versus last year, strongly ahead of last year with margin reaching 14.4% and a total cost reduction of over €50 million ($65.15 million) versus last year.

"We are very encouraged by the increased rate of vaccinations around the world and the gradual return of employees to the office," Christian Schmitz, group CEO, said in the release. "While the pandemic has brought real and permanent change in what will become the 'new normal' of hybrid and flexible working solutions, Selecta is superbly positioned to meet the needs of the post COVID-19 world."

For an update on how the coronavirus pandemic is affecting convenience services, click here.