Miko N.V.

Earnings Release • Sep 24, 2020

Press release (embargoed until 5.40 p.m. CEST on 24 September 2020)

Regulatory information.

Miko: Half-year results 2020

Turnhout, 24 September 2020 – Miko, the Euronext Brussels listed specialist in coffee service and plastic packaging, posted a decrease in turnover, operating profit (EBIT), operating cash flow (EBITDA) and net profit in the first half of 2020, of 12.51 %, 53.08 %, 19.53 % and 61.99 % respectively.

Group turnover saw a considerable downturn of 12 %. This is linked to the COVID-19 crisis, which resulted in coffee sales to the hospitality sector practically coming to a standstill during lockdown, while the sale of coffee to office-based businesses significantly decreased as people were forced to work from home. The lockdown affected all our home countries and resulted in a drop in turnover of 29.31 % to EUR 43.6 million. The consequence is that the coffee service department suffered an exceptional deterioration in EBITDA of 57.92 % to EUR 4.4 million.

A substantial offset for the major pressure on sales within the coffee service department was achieved by a rise in sales within the plastics packaging department, and this primarily within the home care and margarine-tubs units, in which several new projects were launched. Moreover, both plastics units succeeded in gaining a share of general growth seen in the retail market during lockdown. Turnover increased by 7.14 % to EUR 56.5 million. This translates to a healthy increase in EBITDA of 32.09 % to EUR 9.1 million within this department.

Frans Van Tilborg, CEO of the Miko Group: "We have been asking our employees to perform under the most exceptional of circumstances over the recent months. Many were prepared to continue working extremely hard throughout the Corona crisis, while others had no option but to remain at home for reasons of technical unemployment. We must express our thanks to all our colleagues.

The pandemic has also taken its toll on our organisation. We are not in a position to predict the extent of the possible future damage that we might suffer. While we see a clear improvement in sales, now that the lockdowns in our various home countries have been lifted, it is clear that we cannot make any predictions in relation to second waves or the long-term effects on the economy. And that is why we cannot comment on our expectations.

Nevertheless, we will unrelentingly aim to make up for the damages suffered. In line with this, we have not hesitated to implement reorganisations amongst most of our coffee service subsidiaries. Further efficiencyenhancing measures are currently being studied. We went ahead with the relaunch of our Bruynooghe coffee, a brand based in West Flanders, which was restyled and rebranded just before the pandemic. And we have seen some very favourable responses! We plan to accelerate our current IoT (Internet of Things) and digitalization projects. And COVID-19 will undoubtedly bring opportunities where external growth is concerned... Since our leverage multiple is currently at 1.76, our financial situation remains healthy."

ABOUT MIKO

Miko has been active in coffee service for over 200 years and in plastic packaging for some 45 years now, and was floated on Euronext Brussels in 1998. Miko follows a "two-pillar strategy" in which its core activities – coffee service and plastic packaging – are practically independent entities with their own management, so that each activity can follow its own growth path. The Group posted a turnover of EUR 224,6 million in 2019, with the coffee service and plastics processing division accounting for respectively 54,5 % and 45,5 % of this figure. Miko is an international group with companies in Belgium, France, UK, the Netherlands, Germany, Denmark, Norway, Sweden, Poland, the Czech Republic, Slovakia, Indonesia and Australia.

END

Note for editors:

For photos: www.miko-group.com – English – Press releases.

For more information, please contact Frans Van Tilborg on +32 (0)14-46.27.70.

After 4.30 p.m. CEST: +32 (0) 499-03.70.84 (mobile Frans Van Tilborg).

Dit persbericht is ook beschikbaar in het Nederlands.

Ce communiqué de presse est également disponible en français.

Miko website: www.mikocoffee.com

SCHEDULE 1 – Half-yearly results Miko Group

	30/06/2020 (KEUR)	30/06/2019 (KEUR)
Revenu	100.156	114.471
Revenue - sale of goods	95.712	110.861
Revenue – leasing	4.384	3.501
Revenue - sale of fixed assets	60	109
Other operating income	2.316	2.495
Raw materials & consumables used	$-51.431$	$-58.533$
Employee benefit expense	$-22.910$	$-25.575$
Depreciation and amortization	$-8.816$	$-8.291$
Other operating expenses	$-15.364$	$-16.145$
Total expenses	$-98.521$	$-108.544$
Operating profit before interests and taxes (EBIT)	3.951	8.422
Operating profit before interests, taxes, depreciations and impairments (EBITDA)	13.720	17.050
Net financial result	$-544$	$-478$
Financial income	19	24
Financial costs	$-563$	$-502$
Profit before taxes	3.407	7.944
Taxes on result	$-1.428$	$-2.386$
Net profit of the group	1.979	5.558
Attributable to minority interests	$-160$	-70
Attributable to Miko shareholders	2.139	5.628
Weighted average number of shares	1.242.000	1.242.000
Basic earnings per share, Attributable to Miko shareholders (in euro)	1,72	4,53
Weighted average number of shares after dilution	1.241.502	1.247.760
Diluted earnings per share,	1,72	4,51
Attributable to Miko shareholders (in euro)

SCHEDULE 2 - Consolidated overview of comprehensive income

	30/06/2020 (KEUR)	30/06/2019 (KEUR)
Net result of the year	1.979	5.558
Currency translation differences (items that may be reclassified to profit or loss)	$-3.478$	87
Other items of comprehensive income (items that will not be reclassified to profit or loss)		$\Omega$
Comprehensive income for the year	$-1.499$	5.645
Attributable to Miko shareholders	$-1.339$	5.716
Attributable to minority interests	$-160$	$-71$