DO & CO AKTIENGESELLSCHAFT DO & CO AKTIENGESELLSCHAFT
ANNUAL FINANCIAL REPORT
BUSINESS YEAR 2020/2021
THE GOURMET ENTERTAINMENT COMPANY
CONTENTS | ||
Group Management Report for 2020/2021 .................................................... | ||
2. | Impact of the COVID-19 crisis ........................................................................... | 4 |
3. | Key Figures of the DO & CO Group under IFRS .................................................... | 5 |
4. | Economic environment...................................................................................... | 6 |
5. | Business Development...................................................................................... | 8 |
5.1. | Revenue ......................................................................................................... | 8 |
5.2. | Result............................................................................................................. | 9 |
5.3. | Statement of financial position......................................................................... | 10 |
5.4. | Employees .................................................................................................... | 10 |
5.5. | Research and development ............................................................................. | 10 |
5.6. | Non-financial performance indicators ................................................................ | 10 |
5.7. | Airline Catering .............................................................................................. | 11 |
5.8. | International Event Catering............................................................................ | 14 |
5.9. | Restaurants, Lounges & Hotels ........................................................................ | 16 |
5.10. | Share / Investor Relations / Information Pursuant to Section 243a UGB................ | 19 |
6. | Outlook......................................................................................................... | 25 |
7. | Risk and Opportunity Management ................................................................... | 27 |
8. | Internal Control System .................................................................................. | 35 |
Consolidated Corporate Governance Report................................................. | 37 | |
1. | Commitment to the Code of Corporate Governance ............................................ | 37 |
2. | The Management Board .................................................................................. | 37 |
3. | The Supervisory Board.................................................................................... | 38 |
4. | Diversity Concept ........................................................................................... | 41 |
5. Measures to promote Women on the Management Board, Supervisory Board and in
Executive Positions......................................................................................... | 42 | |
Report of the Supervisory Board .................................................................. | 43 | |
Consolidated Financial Statements 2020/2021 of DO & CO Aktiengesellschaft | ||
pursuant to IFRS.......................................................................................... | 45 | |
1. | Consolidated Statement of Financial Position ..................................................... | 46 |
2. | Consolidated Income Statement ...................................................................... | 47 |
3. | Consolidated Statement of Comprehensive Income ............................................ | 48 |
4. | Consolidated Statement of Cash Flows.............................................................. | 49 |
5. | Consolidated Statement of Changes in Equity .................................................... | 50 |
6. | Segment Reporting ........................................................................................ | 51 |
Notes to the Consolidated Financial Statements .......................................... | 54 | |
1. | General Information ....................................................................................... | 54 |
2. | Effects of new and / or amended IFRS .............................................................. | 55 |
2.1. | New and amended standards and interpretations ............................................... | 55 |
2.2. | New standards not yet effective ....................................................................... | 55 |
3. | Significant Accounting Principles ...................................................................... | 56 |
3.1. | Consolidation................................................................................................. | 56 |
3.2. | Currency translation ....................................................................................... | 58 |
3.3. | Accounting methods ....................................................................................... | 59 |
3.4. | Significant discretionary decisions and estimates ............................................... | 68 |
4. | Comments on the Consolidated Statement of Financial Position ........................... | 71 |
4.1. | Intangible assets............................................................................................ | 71 |
4.2. | Property, plant and equipment......................................................................... | 75 |
4.3. | Investments accounted for using the equity method ........................................... | 76 |
4.4. | Other financial assets (non-current) ................................................................. | 76 |
4.5. | Inventories.................................................................................................... | 77 |
4.6. | Trade receivables ........................................................................................... | 77 |
4.7. | Other non-financial assets current) .................................................................. | 78 |
4.8. | Cash and cash equivalents .............................................................................. | 78 |
4.9. | Assets held for sale / liabilities directly attributed to assets held for sale ............... | 79 |
4.10. | Shareholders' equity....................................................................................... | 79 |
4.11. | Convertible bonds .......................................................................................... | 82 |
4.12. | Other financial liabilities (non-current) .............................................................. | 82 |
4.13. | Non-current provisions ................................................................................... | 83 |
4.14. | Income tax.................................................................................................... | 84 |
4.15. | Other financial liabilities (current) .................................................................... | 86 |
4.16. | Trade payables .............................................................................................. | 86 |
4.17. | Current provisions.......................................................................................... | 86 |
4.18. | Other liabilities (current) ................................................................................. | 86 |
5. | Comments on the Consolidated Income Statement............................................. | 88 |
5.1. | Revenue ....................................................................................................... | 88 |
5.2. | Other operating income .................................................................................. | 89 |
5.3. | Cost of materials............................................................................................ | 89 |
5.4. | Personnel expenses ........................................................................................ | 89 |
5.5. | Other operating expenses ............................................................................... | 90 |
5.6. | Result of equity investments accounted for using the equity method .................... | 90 |
5.7. | Amortisation / depreciation and effects from impairment tests............................. | 90 |
5.8. | Financial result .............................................................................................. | 91 |
5.9. | Income tax.................................................................................................... | 91 |
5.10. | Earnings per share ......................................................................................... | 92 |
5.11. | Proposed appropriation of profit ....................................................................... | 92 |
6. | Comments on the Consolidated Statement of Cash Flows .................................... | 93 |
7. | Additional Disclosures ..................................................................................... | 94 |
7.1. | Contingencies and financial liabilities ................................................................ | 94 |
7.2. | Leases .......................................................................................................... | 94 |
7.3. | Additional disclosures on financial instruments................................................... | 96 |
7.4. | Significant events after the reporting period (subsequent report) ........................ | 103 |
7.5. | Related party disclosures ............................................................................... | 103 |
7.6. | Investments ................................................................................................. | 105 |
7.7. | Corporate boards .......................................................................................... | 106 |
Auditor's Report......................................................................................... | 108 | |
Statements by all Legal Representatives Pursuant to Section 124 Austrian | ||
Stock Exchange Act.................................................................................... | 113 | |
Glossary..................................................................................................... | 114 |
Group Management Report for 2020/2021
1. Highlights
The COVID-19 pandemic has severely affected revenue and result, but successful crisis management has secured sufficient liquidity and created good conditions for future growth despite a decline in revenue of 72.9%.
Revenue (€ 253.46m / -72.9%), net result (€ -35.51m), cash and cash equivalents (€ 207.60m). Earnings per share thus amount to € -3.64 (PY: € -2.55).
While the first quarter of the business year 2020/2021 saw a total standstill and massive restructuring measures, in the second quarter, all three divisions reported an initial slow recovery and resumption of business activities. The measures resolved on by the Management Board have proven effective. It was already possible to significantly increase revenue and result in the second quarter, when compared with the first quarter of the business year 2020/2021. Despite new lockdowns and uncertainties due to the COVID-19 pandemic, it was possible to maintain revenue, albeit low, at a consistent level in the second half of the business year 2020/2021. Thanks to rigorous and successful cost management, the net result was even positive again in the third and fourth quarters of the business year 2020/2021. As a result of one-off effects, the EBITDA margin also increased to 17.8% in the business year 2020/2021.
Due to the impact of the COVID-19 pandemic, the Management Board decided to propose to the General Meeting of Shareholders that no dividend will be distributed for the business year 2020/2021.
DO & CO wins the catering tender for Delta Air Lines in Detroit
DO & CO is proud to have acquired Delta Air Lines as a new customer, who, in terms of sales, is the largest airline in the world. For a period of ten years starting on 16 March 2021, DO & CO will be the sole hub caterer for the entire on-board services on all short-haul and long-haul flights ex Detroit, one of the largest and most important locations of Delta Air Lines. The contractual partnership represents one of the decisive milestones in DO & CO's implementation of its expansion plans in the US. The newly formed alliance with Delta Air Lines demonstrates that even during difficult times, customers continue to value innovation, high product and service quality, efficient logistics, as well as operational reliability.
Successful takeover of catering services for British Airways
In the previous business year 2020/2021, DO & CO once again demonstrated its operational reliability by taking over the entire catering of British Airways ex London Heathrow. After the successful takeover of catering services on all British Airways long-haul flights ex London Heathrow in mid-May 2020, all short-haul flights were also taken over on 15 September 2020. At the same time, the largest gourmet kitchen in Europe with an area of more than 34,000 sqm was opened in London and became fully operational.
Early catering contract extension with Austrian Airlines
DO & CO and Austrian Airlines continue their partnership which has been in place since 2007. The catering contract expiring at the end of 2021 was extended by a further six years until the end of 2027.
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Win of significant new airline catering customers:
Despite the devastating impact of the COVID-19 pandemic on the aviation industry, DO & CO is continuing to expand its position as a premium airline caterer. In addition to Delta Air Lines in Detroit, DO & CO was able to acquire a number of renowned new customers at various locations in the business year 2020/2021:
• | American Airlines | ex Detroit (acquired in the fourth quarter of the |
business year 2020/2021) | ||
• | Spirit Airlines | ex Detroit (acquired in the fourth quarter of the |
business year 2020/2021) | ||
• | Jet Blue | ex Los Angeles, San Diego and Palm Springs |
• | Etihad | ex Los Angeles and Chicago |
• | Qatar Airways | ex Madrid |
• All Nippon Airways (ANA) | ex Frankfurt and Munich | |
• | Mongolian Airlines | ex Frankfurt |
• | Air Premia | ex Incheon |
Premium events despite the COVID-19 pandemic
In the business year 2020/2021, DO & CO has proven that, even under the toughest restrictions, it is possible to host top-class events. Owing to the development of new concepts ensuring the safety of guests and employees, culinary pleasure has not come up short despite the COVID-19 pandemic, whether at Formula 1 races across the world, at the ATP tennis tournament or the Vienna Film Festival.
Completion of the new DO & CO hotel including a restaurant complex in Munich
On 6 December 2020, the new DO & CO boutique hotel, the restaurant and the Bavarian "Gastwirtschaft" near Munich's Marienplatz were completed as scheduled. The project was realised together with the long-standing partner FC Bayern Munich. However, due to the extension of the lockdown in Germany, the opening had to be postponed to the spring of 2021.
Opening of a new top Asian restaurant in the heart of Vienna
The new ONYX restaurant at the Haas Haus at Stephansplatz in Vienna was opened on 15 October 2020. In a relaxed and sophisticated atmosphere, visitors are now able to enjoy contemporary Japanese cuisine at a level usually only available in major metropolises such as New York and London. Having been closed since November 2020 due to the lockdown imposed on the food service industry in Austria, the top Asian restaurant reopened in mid-May 2021.
Expansion of the retail portfolio
In the business year 2020/2021, DO & CO launched a number of new retail concepts, hiring a new team of highly qualified specialists for this purpose. At several locations in Vienna, the "Kaiserschmarrn to-go" was particularly popular. Additionally, freshly prepared take-away ready meals have been offered under the "Lazy Chef" brand since the business year 2020/2021. They are available at selected retail stores and at the first "Lazy Chef" shop at Stephansplatz. Moreover, a new delivery and pick-up service called "DO & CO Home" was launched in Vienna in the fourth quarter of the business year 2020/2021, enabling customers to enjoy the culinary delights of the new ONYX restaurant at top DO & CO quality from home.
Partnership with Rick Stein
In the UK, the "Stein's at Home" food box now enables customers to conjure up a meal prepared by DO & CO gourmet chefs in their own kitchens in just a few simple steps. The food box was
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DO & CO AG published this content on 17 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 June 2021 07:03:02 UTC.
