European route services giant Selecta Group announced its results for last three months of 2020, ended Dec. 31. Fourth-quarter 2020 sales were €247.4 million, compared with €406.4 million during the same period the prior year.
The latest fourth-quarter performance was impacted by COVID-19, prompting tightened lockdown measures during the period across most geographies served by company, Selecta reported.
Adjusted EBITDA of €28.2 million was at 11.4% of sales and reflected a reduction in total costs of more than €50 million in the quarter.
In its latest financial update, Selecta reported improvement of its ONE Selecta go-to-market strategy and transition to a “GLOCAL” model. It’s taking a client-centric approach to optimize business retention, and investing in technology and integrating CRM systems to support the end-to-end the sales process across all markets
In other news, Selecta, which is headquartered in Switzerland, signed a new five-year partnership with Nestlé to roll out Starbucks premium self-service coffee concept across Europe, and another agreement with Albert Heijn to expand fresh food menus at its FOODIE’S self-service market.
Selecta also entered into an exclusive partnership signed with Instant Systems Sweden to expand smart fridges across Europe, offering a wide range of 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,” said Selecta executive chairman Joe Plumeri. “In 2021, we remain focused on execution of our strategy and delivering on our purpose of creating moments of joy for millions of our customers across Europe.”
Selecta also shared 2020 full-year results. Highlights are (at actual exchange rates):
- Sales of €1,007.7 million, with toughest conditions seen in France and the UK,
- while Sweden and Switzerland were most resilient.
- Adjusted EBITDA of €85.1 million, with very strong cost management resulting in a total cost reduction of over €80 million.
- Recapitalization in October 2020 provides resources to execute ONE Selecta vision.
- Free cash flow of €63.7 million.
- Liquidity headroom €206.8 million.
Selecta Group chief executive Christian Schmitz said, “Food-to-go market dynamics have accelerated during the pandemic and Selecta is equipped to address the needs of the post COVID-19 world.
“Our client-centric model provides innovative new healthy food offerings, contactless service and 24/7 flexibility which supports our clients’ evolving preferences and the needs of the new, socially and environmentally conscious consumer generation,” he continued.
“With our clear focus on delivering high quality client service, building strong partnerships with globally recognized brands and maintaining strict financial discipline, we are well positioned for achieving our 2021 strategic objectives and supporting future growth,” Schmitz concluded.
