Corporate | 20 February 2020 11:26

DO & CO Aktiengesellschaft:

DGAP-News: DO & CO Aktiengesellschaft / Key word(s): 9 Month figures
20.02.2020 / 11:26
The issuer is solely responsible for the content of this announcement.

Results for the 1 ^st to 3 ^rd Quarter of 2019/2020
(1 April 2019 to 31 December 2019)

– Successful takeover of catering for Iberia / Iberia Express in Madrid

– FORMULA 1 contract extension by another 5 years agreed

– Double-digit revenue growth in all divisions

REVENUE	EUR 759.89m	+ 16.7%
EBITDA	EUR 87.93m	+ 42.6%
EBIT	EUR 48.97m	+ 24.3%
All key figures following first-time application of the new standard IFRS16

Vienna – 20 February 2020 – DO & CO Aktiengesellschaft is publishing its results under IFRS for the first three quarters of the business year 2019/2020 today. In the first three quarters of the business year 2019/2020, the DO & CO Group recorded revenue in the amount of EUR 759.89m, representing an increase of 16.7% or EUR 108.59m on the previous year.

DO & CO applied the new IFRS 16 Leases accounting standard for the first time as of
1 April 2019, recognising the material impact in the consolidated income statement. As a lessee, DO & CO recognises a lease liability and right-of-use asset from the time the asset is provided. This results in an increase of amortisation/depreciation/impairment and interest expenses, partially offset by decreases in rental expenses. For the purpose of comparison, the results from the first three quarters of the business year 2019/2020 are also presented excluding the impact of IFRS 16 at both group and division level.

Divisions and Group	Q1-Q3 2019/20 in m€	Q1-Q3 2018/19 in m€	Change in m€	Change in %		Q1-Q3 2019/20 excl. IFRS 16 in m€
Airline Catering	535.34	452.83	82.50	18.2%		535.34
International Event Catering	119.84	107.14	12.70	11.9%		119.84
Restaurants, Lounges & Hotel	104.71	91.32	13.39	14.7%		104.71
Group revenue	759.89	651.29	108.59	16.7%		759.89
EBITDA	87.93	61.65	26.28	42.6%		67.35
Depreciation/impairment	-38.95	-22.26	-16.69	-75.0%		-21.31
EBIT	48.97	39.39	9.59	24.3%		46.04
Net Result	21.42	21.99	-0.57	-2.6%		22.76
EBITDA margin	11.6%	9.5%				8.9%
EBIT margin	6.4%	6.0%				6.1%
Net result margin	2.8%	3.4%				3.0%
Employees	11,051	9,854	1,197	12.1%		11,051

The EBITDA of the DO & CO Group was EUR 87.93m (PY: EUR 61.65m). The EBITDA margin was 11.6% (PY: 9.5%). Consolidated earnings before interest and tax (EBIT) of the DO & CO Group amounted to EUR 48.97m for the first three quarters of the business year 2019/2020, EUR 9.59m higher than in the same period of the previous year. The EBIT margin was 6.4% (PY: 6.0%). The net result decreased by -2.6% from EUR 21.99m in the previous year to EUR 21.42m in the first three quarters of the business year 2019/2020.

Below, a detailed account is given on the development of the three divisions of the DO & CO Group:

1. AIRLINE CATERING

Airline Catering	Q1-Q3 2019/20 in m€	Q1-Q3 2018/19 in m€	Change in m€	Change in %		Q1-Q3 2019/20 excl. IFRS 16 in m€
Revenue	535.34	452.83	82.50	18.2%		535.34
EBITDA	55.07	41.50	13.57	32.7%		42.04
Depreciation/impairment	-27.10	-16.70	-10.40	-62.3%		-16.35
EBIT	27.97	24.81	3.16	12.8%		25.69
EBITDA margin	10.3%	9.2%				7.9%
EBIT margin	5.2%	5.5%				4.8%
Share in consolidated sales	70.4%	69.5%				70.4%

Almost all DO & CO locations report significant increases in revenue. It is particularly the locations in the US, Great Britain, Turkey, Poland and Ukraine that report a positive development.

The preparations for the takeover of the entire catering services for British Airways at London Heathrow are in full swing. In this context, DO & CO is building one of the most modern and largest gourmet kitchens in Europe with an area of more than 35,000 sqm in London. After the successful takeover of the first long-haul flights in December 2018, DO & CO took over catering services for another six British Airways destinations ex London Heathrow between April and June 2019.

The development on the German market is also very favourable. After Düsseldorf and Munich, Singapore Airlines has also switched to DO & CO at the large hub in Frankfurt. DO & CO is therefore able to substantially intensify its business relations with another quality carrier.

The same applies to the business relations with Cathay Pacific. Since the beginning of May 2019, DO & CO has provided catering services for Cathay Pacific’s six daily flights ex London Heathrow and ex London Gatwick.

Moreover, DO & CO won the Iberia North America catering tender at all three DO & CO locations. Since November and May 2019 all Iberia flights ex Chicago and Los Angeles have already been provided with catering services, with New York JFK following in May 2020.

Another pleasing development is that DO & CO’s quality strategy does not only result in new business relations but also leads to airlines receiving prestigious awards. These in turn can be used as a marketing instrument in communication. In particular, Skytrax ( www.worldairlineawards.com ) should be mentioned in this context, where Austrian Airlines with DO & CO catering was awarded “Best Business Class Catering in Europe” and “Best Premium Economy Class Catering” in 2019.

The reduction in the EBITDA margin excluding the effects of IFRS 16 is primarily attributable to one-off legal and consulting fees for extraordinary M&A projects in the amount of approximately EUR 2.7m as well as start-up costs regarding British Airways and Iberia in the amount of approximately EUR 6.3m. Adjusted by these effects the EBITDA-margin is above previous year’s level.

2. INTERNATIONAL EVENT CATERING

International Event Catering	Q1-Q3 2019/20 in m€	Q1-Q3 2018/19 in m€	Change in m€	Change in %		Q1-Q3 2019/20 excl. IFRS 16 in m€
Revenue	119.84	107.14	12.70	11.9%		119.84
EBITDA	17.65	14.09	3.56	25.2%		16.53
Depreciation/impairment	-4.18	-3.45	-0.74	-21.4%		-3.12
EBIT	13.47	10.65	2.82	26.5%		13.40
EBITDA margin	14.7%	13.2%				13.8%
EBIT margin	11.2%	9.9%				11.2%
Share in consolidated sales	15.8%	16.5%				15.8%

The division reports increased revenue and margins.

Four Formula 1 grand prix races took place in the third quarter of the business year 2019/2020. The VIP guests enjoyed DO & CO catering in Suzuka, Austin, Mexico and at the final race of the season in Abu Dhabi.

Moreover, in the third quarter of the business year 2019/2020, DO & CO also was the culinary host for guests at numerous football matches of FC Bayern Munich, Juventus Turin Football Club, FK Austria Vienna and FC Redbull Salzburg as well as for activities at Munich’s Olympic Park.

A particular highlight in the third quarter of the business year 2019/2020 were the 200th anniversary celebrations of Erste Bank in Vienna with more than 19,000 guests over three days.

3. RESTAURANTS, LOUNGES & HOTEL

Restaurants, Lounges & Hotel	Q1-Q3 2019/20 in m€	Q1-Q3 2018/19 in m€	Change in m€	Change in %		Q1-Q3 2019/20 excl. IFRS 16 in m€
Revenue	104.71	91.32	13.39	14.7%		104.71
EBITDA	15.20	6.05	9.15	151.2%		8.78
Depreciation/impairment	-7.66	-2.12	-5.55	-262.2%		-1.83
EBIT	7.54	3.94	3.60	91.6%		6.94
EBITDA margin	14.5%	6.6%				8.4%
EBIT margin	7.2%	4.3%				6.6%
Share in consolidated sales	13.8%	14.0%				13.8%

The division also reports increased revenue and margins.
Activities at the restaurants, cafés, at gourmet retail shops, at the airline lounges, staff restaurants and in airport gastronomy are going according to plan and in line with expectations.

OUTLOOK

With its diverse distribution facilities, a broad brand portfolio and activities in numerous regions, DO & CO is in an excellent position to face challenging market conditions and expects good development opportunities also in the future.

More details are provided below:

SPAIN:
SUCCESSFUL TAKEOVER OF CATERING AND LOUNGES OF IBERIA AND IBERIA EXPRESS IN MADRID
On 1 February 2020, DO & CO successfully took over all catering services on all Iberia and Iberia Express flights ex Madrid-Barajas.
The only reason for this difficult takeover having been performed smoothly was that a large number of experts within the DO & CO network was flown in to support the local team.
DO & CO was thus able to prove once more that it is able to successfully take over large hub and homebase locations on one specific cut-off date. Currently, approx. 170 flights per day, 140 thereof being short-haul flights and 30 long-haul flights, are easily provided with catering services.

Also on 1 February 2020, DO & CO has taken over catering services for both premium lounges of Iberia (Velaquez and Dali) at the Madrid-Barajas airport. In doing so, up to 3,000 guests are enjoying the fresh culinary treats of DO & CO on a daily basis.

US:
NEW CUSTOMER QATAR AIRWAYS AT NEW YORK JFK
With Qatar Airways, DO & CO has won another quality-focused and prestigious customer at New York John F. Kennedy. Since mid-February 2020, high-quality menus have been offered to Qatar Airways on two daily flights. DO & CO has therefore substantially improved its market position at this strategically important location and is the market leader for international airlines.

VIENNA / AUSTRIA
DO & CO has also won another customer in Vienna. Since January 2020, Ethiopian Airlines has been provided with catering services on one daily flight.

MILAN MALPENSA / ITALY
EVA Air was won as new customer at Milan Malpensa as of May 2020.

FORMULA 1:
AGREEMENT ON CONTRACT EXTENSION BY ANOTHER FIVE YEARS
DO & CO and Liberty Media agreed on a contract extension to cater for guests at the Formula 1 grand prix races for the years from 2020 onwards. Following the 28 ^th season in a row, DO & CO will thus provide catering services for another five years at the exclusive Paddock Club. Besides catering, this also includes the Formula 1 VIP hospitality infrastructure of which DO & CO has been in charge since the business year 2014/2015.

GERMANY:
CONTRACT EXTENSION WITH OLYMPIAPARK MÜNCHEN GMBH UNTIL 2028
The Olympic Park in Munich and DO & CO are continuing their successful cooperation to cater for guests and visitors at the Munich Olympic Park even after 2023. The Olympic Park in Munich already opted for an early extension of the contract by a further five years until the end of 2028.

CATHAY PACIFIC LOUNGES IN FRANKFURT NOW WITH DO & CO – INTENSIFYING THE COOPERATION WITH CATHAY PACIFIC
After the takeover of catering services for Cathay Pacific at London Heathrow and London Gatwick, the entire selection of menus for the first class as well as the quality assurance for all locations in Europe and North America, DO & CO has now also won the business lounge in Frankfurt! DO & CO will take over this lounge starting already at the end of February 2020.

UK:
DO & CO WINS TENDER FOR QATAR AIRWAYS LOUNGES IN LONDON
At the London Heathrow location, DO & CO will take over catering services for the Qatar Airways business and frequent traveller lounges as of April 2020. DO & CO is extremely proud to add Qatar Airways to its customer portfolio in the lounges segment.

PREPARATIONS FOR THE NEW BUSINESS YEAR 2020/2021
DO & CO is particularly busy in the last quarter of the business year 2019/2020 as well as the subsequent business year 2020/2021.
The preparations for opening the gourmet kitchens at London Heathrow as well as the planning for the European football championship UEFA EURO 2020 are in full swing.

DO & CO’s management is confident that it can continue its successful performance of the past years. A focus on innovation, superior product and service standards and excellently trained and committed staff continue to provide the underpinnings for DO & CO to make the best possible use of its available growth potential.

Investor Relations

DO & CO Aktiengesellschaft	ISIN	AT0000818802
Daniela Schrenk
	Security abbreviation	DOC, DOCO
Stephansplatz 12	Reuters	DOCO.VI, DOCO.IS
1010 Vienna	Bloomberg	DOC AV, DOCO. TI
	Number of shares	9,744,000
	Listed nominal amount	19,488,000 EUR
	Indices	ATX, ATX Prime, BIST ALL
Phone: (01) 74 000-0	Official quotation	Vienna, Istanbul
E-mail: investor.relations@doco.com	Currency	EUR, TRY
Internet: www.doco.com	Initial listing	30 June 1998 (Vienna Stock Exchange)
		2 Dec 2010 (Istanbul Stock Exchange)

Financial report: http://www.doco.com/Portals/8/berichte/jahres-und-quartalsberichte/en/q3_2019.pdf

Contact:
Mag. Daniela Schrenk
Group Legal Department

20.02.2020 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language:	English
Company:	DO & CO Aktiengesellschaft
	Stephansplatz 12
	1010 Wien
	Austria
Phone:	+43 (1) 535 0644 1010
Fax:	+43 (1) 74000-1089
E-mail:	investor.relations@doco.com
Internet:	www.doco.com
ISIN:	AT0000818802
WKN:	81880
Listed:	Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt, Munich, Stuttgart, Tradegate Exchange; London, Vienna Stock Exchange (Official Market)
EQS News ID:	979807

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