Vending

Selecta reports 12.3% revenue drop due to COVID-19, names new leadership

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June 2, 2020

Selecta, Europe's largest vending services provider, reported revenue decreased by 12.3% to €358.1 million ($400.2 million) for first quarter, compared to €408.3 million ($456.3 million) for the year-ago quarter, primarily due to the emerging impact of the COVID-19 pandemic, according to a press release. The company has also named a new executive chairman and a new CEO. 

Net cash generated from operating activities was an inflow of €44.3 million ($49.41 million) for the quarter, compared to €80.1 million ($89.52 million) for the year-ago quarter. This decline compared to the prior year period was primarily due to lower EBITDA and the adverse impact of a lower revenue base on the Group's working capital position.

Adjusted EBITDA decreased by 58.3% to €28.6 million ($31.96 million) for the quarter compared to €68.8 million ($76.9 million) for the year-ago quarter, and reported EBITDA decreased by 48.5% to €25.4 million ($28.39 million) for the quarter compared to €49.3 million ($55.1 million) for the quarter as cost cutting measures were unable to fully offset revenue reductions. 

The COVID-19 crisis continues to have a negative impact on Selecta's business by causing significant disruption across all of its markets and severely affecting its operations. Italy was Selecta's first market to be materially impacted at the end of February 2020.

Selecta also announced that the current executive chairman, David Hamill, has decided to retire from the group. Furthermore, the company announced that the current group chief executive officer, David Flochel, will also leave his role. Both will leave the group with immediate effect. Joe Plumeri, a member of the board since March 2020, will take on the role of executive chairman.

Christian Schmitz, a member of the board of since April 2020 and acting as interim chief operating officer since beginning of the year, will replace Flochel as chief executive officer. Schmitz is a director at KKR Capstone and as part of his new role, he will transition full time to Selecta. 

For an update on how the coronavirus pandemic has affected convenience services, click here.