DO & CO AG — Earnings Release 2016

Nov 17, 2016

News Details

Ad-hoc | 17 November 2016 09:45

DO & CO Aktiengesellschaft:

DO & CO Aktiengesellschaft / Key word(s): Half Year Results

17.11.2016 09:45

Disclosure of an inside information according to Article 17 MAR,
transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Results for the first half of the business year 2016/2017
(1 April 2016 to 30 September 2016)

sales and earnings increased
strong international expansion continued
DO & CO first included into ATX

SALES: EUR 504.7m
EBITDA: EUR 50.4m
EBIT: EUR 32.8m

VIENNA - 17 November 2016 - DO & CO Aktiengesellschaft is publishing its
results in accordance with IFRS as adopted in the European Union for the
first half of the 2016/2017 business year (1 April 2016 to 30 September
2016) today. In the first half of the 2016/2017 business year, the DO & CO
Group recorded sales of EUR 504.67m, an increase of 6.3% or EUR 29.73m
compared to the first half of the previous business year in spite of
negative currency effects (mostly Turkish lira and British pound).

Sales HY1 2016/17 HY1 2015/16 Change Change
in mEUR (1) in mEUR in %
in mEUR
Airline Catering 328.08 326.13 1.95 0.6%
International Event 92.95 65.10 27.85 42.8%
Catering
Restaurants, Lounges 83.64 83.71 -0.07 -0.1%
& Hotel
Group Sales 504.67 474.94 29.73 6.3%

(1). 1st half year 2015/16 adjusted

Group HY1 2016/17 HY1 2015/16 Change Change
in mEUR (1) in mEUR in %
in mEUR
Sales 504.67 474.94 29.73 6.3%
EBITDA 50.37 48.28 2.09 4.3%
Amortisation / -17.61 -16.12 -1.49 -9.2%
depreciation and
impairments
EBIT 32.76 32.16 0.61 1.9%
Net result 15.16 18.92 -3.77 -19.9%

EBITDA margin 10.0% 10.2%
EBIT margin 6.5% 6.8%

Employees 10,100 9,890 210 2.1%

(1). 1st half year 2015/16 adjusted

EBITDA of the DO & CO Group was EUR 50.37m (PY: EUR 48.28m). The EBITDA
margin was 10.0% (PY: 10.2%). Consolidated earnings before interest and tax
(EBIT) of the DO & CO Group amounted to EUR 32.76m for the first half of
2016/2017, EUR 0.61m higher than in the same period of the previous year.
The EBIT margin was 6.5% (PY: 6.8%).

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

AIRLINE CATERING

Airline Catering HY1 2016/17 HY1 2015/16 Change Change
in mEUR (1) in mEUR in %
in mEUR
Sales 328.08 326.13 1.95 0.6%
EBITDA 38.10 38.67 -0.57 -1.5%
Amortisation / -13.18 -10.30 -2.88 -28.0%
depreciation and
impairments
EBIT 24.92 28.37 -3.45 -12.2%

EBITDA margin 11.6% 11.9%
EBIT margin 7.6% 8.7%

Share of Group 65.0% 68.7%
Sales

(1). 1st half year 2015/16 adjusted

In the first half year of the 2016/2017 business year, the Airline
Catering division generated sales of EUR 328.08m (PY: EUR 326.13m), an
increase of 0.6% on the previous year. The Airline Catering division
contributed 65.0% (PY: 68.7%) to the Group's overall sales. At EUR 38.10m,
EBITDA was lower by EUR 0.57m (-1.5%) than in the corresponding period of
the previous business year. At EUR 24.92m, EBIT was similarly below the
previous year's figure of EUR 28.37m. The EBITDA margin was 11.6% (PY:
11.9%) and the EBIT margin was 7.6% (PY: 8.7%) in the first half year of
the 2016/2017 business year.

Most locations reported an increase in sales, particularly those in the US
and Germany. Austria, Italy and Poland remained stable. Business declined
in Ukraine, mostly due to the loss of the most important client, which
operates its own catering.

Turkey, one of the key markets of DO & CO, managed to grow by +4.4% in the
country's currency (Turkish lira), which, however, due to the depreciation
of the Turkish lira vis-à-vis the euro is reflected as a decrease in sales
amounting to -2.7% in the DO & CO Group's income statement. Similarly, the
British pound depreciated vis-à-vis the reporting currency, causing a
decrease in sales of -4.8% while in local currency a sales increase of
+8.2% is reported. The major part of the costs occurs in local currency;
therefore the margins are not affected.

INTERNATIONAL EVENT CATERING

International HY1 2016/17 HY1 2015/16 Change Change
Event Catering in mEUR in mEUR in mEUR in %
Sales 92.95 65.10 27.85 42.8%
EBITDA 8.23 5.68 2.55 44.9%
Amortisation / -2.65 -2.32 -0.34 -14.6%
depreciation
EBIT 5.58 3.37 2.21 65.8%

EBITDA margin 8.9% 8.7%
EBIT margin 6.0% 5.2%

Share of Group Sales 18.4% 13.7%

In the first half year of the 2016/2017 business year, the International
Event Catering division generated sales of EUR 92.95m (PY: EUR 65.10m), an
increase of 42.8% on the previous year. The International Event Catering
division contributed 18.4% to the Group's sales (PY: 13.7%). EBITDA for the
period amounted to EUR 8.23m (PY: EUR 5.68m). The EBITDA margin was 8.9%
(PY: 8.7%). EBIT accounted for EUR 5.58m (PY: EUR 3.37m), and the EBIT
margin was reported at 6.0% (PY: 5.2%).

The substantial sales increase reported by this division was due to its
activities during the European Football Championship UEFA EURO 2016. DO &
CO, or specifically Hédiard Paris, operated as the hospitality production
management company for one of the largest sports events ever to have taken
place in Europe. At 51 games, DO & CO served its special culinary treats to
over 110,000 VIP guests in nine cities and ten different stadiums.

During the second quarter of the current business year DO & CO acted as the
culinary host for VIPs not only for the already described sports event but,
i.a., also at:
* the Formula 1 grand prix races in Austria, the UK, Hungary, Germany,
Belgium and Italy,
* the CHIO in Aachen,
* many football games at the Allianz Arena, the home of FC Bayern Munich
and
TSV 1860 Munich,
* activities at Munich's Olympic Park,
* the Beach Volleyball Grand Slam in Klagenfurt and Porec.

RESTAURANTS, LOUNGES & HOTEL

Restaurants, HY1 2016/17 HY1 2015/16 Change Change
Lounges in mEUR in mEUR in mEUR in %
& Hotel
Sales 83.64 83.71 -0.07 -0.1%
EBITDA 4.04 3.93 0.11 2.8%
Amortisation / -1.78 -3.51 1.73 49.3%
depreciation and
impairments
EBIT 2.26 0.42 1.84 435.0%

EBITDA margin 4.8% 4.7%
EBIT margin 2.7% 0.5%

Share of Group 16.6% 17.6%
Sales

In the first half year of the 2016/2017 business year, the Restaurants,
Lounges & Hotel division accounted for sales of EUR 83.64m (PY: EUR
83.71m), contributing 16.6% (PY: 17.6%) to the Group's sales. EBITDA was
EUR 4.04m (PY: EUR 3.93m). The EBITDA margin was 4.8% (PY: 4.7%). At EUR
2.26m, EBIT exceeded the previous year's level (PY: EUR 0.42m). The EBIT
margin was 2.7% (PY: 0.5%).

The division generally reported managing a stable performance.

SHARES

DO & CO was newly included in the Austrian ATX index in September 2016. The
ATX is the most important share index in Austria, comprising the 20 main
Austrian shares weighted by trade sales and capitalisation of portfolio
investments.

After the share price had gained more than 50% on the Vienna Stock Exchange
and 75% on the Istanbul Stock Exchange in the previous business year, DO &
CO's share was subject to a decline in the first half of its 2016/2017
business year. On the Vienna Stock Exchange, DO & CO's share fell by 31.3%
in the first half of the 2016/2017 business year, reporting a closing rate
of EUR 72.77 on 30 September 2016. On the Istanbul Stock Exchange, DO &
CO's share lost 28.4%, closing at TRY 241.90 on 30 September 2016.

OUTLOOK

GENERAL
In the first half of 2016/2017 business year, DO & CO, in spite of facing
some difficult regional markets and negative effects from currency
developments, was able to further increase both its sales and its earnings.
It should be emphasised that the company's main focus is still on its
sustainable business model with long-term positive margin developments.

Thanks to its highly diverse distribution channels, a widespread brand
portfolio and activities in a large number of regions, DO & CO is in an
excellent position to cope with a challenging market and continues to be
confident of future growth prospects.

NEW LOCATIONS ARE SET UP IN LOS ANGELES and PARIS
DO & CO continues on its course of expansion and will enter into further
regions through two new gourmet kitchens in Los Angeles and Paris.

TURKEY
Regarding the engagement in Turkey, it should be noted that DO & CO has
performed a comprehensive evaluation of its activities in Turkey and will
continue these as planned. DO & CO is fully committed to its long-term
projects in Turkey. Renewal of the contract with Turkish Airlines is
currently being negotiated.

RETAIL & HENRY GOURMET SHOPS
In its retail business, at least eight new gourmet shops of the Henry brand
will be opened in 2017; four of them in Vienna and four in London. A new
addition will be a gourmet food delivery service starting next quarter.

AIRLINE LOUNGES
It is to be highlighted that DO & CO is scheduled to open its 30th airline
lounge worldwide in Frankfurt on 1 December 2016.

NEW ACQUISITIONS
Same as in the previous quarters, DO & CO is evaluating potential targets
for acquisition in various markets on an ongoing basis.

Overall, DO & CO's management is highly 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
provide the foundation for DO & CO to make the best possible use of all its
growth potentials.

According to the stock act 87 the interim report is available for the
public at the company's headquarter, A-1110 Vienna, Dampfmühlgasse 5, as
well as on the website:
http://www.doco.com/Portals/8/berichte/jahres-und-quartalsberichte/en/
q2_2016.pdf

17.11.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de

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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, Munich, Stuttgart;
Wien (Amtlicher Handel / Official Market)

End of Announcement DGAP News-Service

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