Selecta has announced its results for the three months ended September 30, 2020, noting the impacts of COVID-19 and lockdown measures.
Q3 Performance Summary[1]
The Group’s financial performance continued 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 evolution showed a sequential improvement between Q2 and Q3 versus corresponding periods in FY19 as lockdown measures were eased, with a revenue reduction of -29.8% in Q3 compared to -47.3% in Q2.
· Revenue fell by 29.8% to €289.3 million for the three months ended 30 September 2020 (three months ended 30 September 2019: €412.2 million)
- Adjusted EBITDA2,3 reduced by 58.1% to €29.9 million for the three months ended 30 September 2020 (three months ended 30 September 2019: €71.5 million), integrating mitigation actions taken to reduce operating costs.
- Reported EBITDA3 was €11.2 million, down 78.3% compared with the three months ended 30 September 2019: €51.9 million, reflecting one-off costs of €18.7 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 recent completion of the recapitalization gives sufficient liquidity headroom to execute the ONE Selecta strategy.
- Reconfirmation of our long-term plan and focus on the execution of our vision to transform and grow the Company.
The full report may be viewed here.
