Vending

Selecta losses continue in Q3, ease from Q2

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December 1, 2020

Selecta Group B.V., the largest route-based service provider for unattended retail locations in Europe, continues to be impacted by COVID-19 and lockdown measures implemented across Europe, resulting in reduced time spent in the workplace and lower footfall in travel hubs.

However, quarterly sales for the Switzerland based company showed a sequential improvement between Q2 and Q3 versus corresponding periods in 2019 as lockdown measures were eased, with a 29.8% revenue reduction of €289.3 million ($345.35 million) for the quarter ending Sept. 30, 2020, compared to 47.3% reduction of €412.2 million ($492.06 million) in Q2, according to an earnings release.

Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) fell by 58.1% to €29.9 million ($35.69 million) for the third quarter of 2020 compared to €71.5 million ($85.35 million) for last year's third quarter.

Reported EBITDA was €11.2 million ($13.37 million), down 78.3% for the third quarter of 2020 compared €51.9 million ($61.96 million) for 2019's third quarter, reflecting one-off costs of €18.7 million ($22.32 million) to support rightsizing of the business.

While Q3 sales and profitability were ahead of expectations, the second wave of the virus in Europe has resulted in new lockdown measures and a more cautious sales outlook for Q4. Further actions are being taken to mitigate these impacts and ensure proper delivery of profitability and cash-flows.

The group has installed 200 FOODIE'S micro markets in Europe, while self-service smart fridge solutions — Selecta Deli and Selecta Minicooler — have been introduced in Sweden, and hygiene and safety solutions were launched for public and private vending as a response to the COVID-19 pandemic.

"The pandemic has been a catalyst to accelerate transformation of the group and we have made good progress in executing our 'One Selecta' strategy and rightsizing the organization to position it for future growth." Joe Plumeri, executive chairman, said in the release.

For an update on how the coronavirus pandemic affects the convenience services industry, click here.