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Miko reports half-year revenue growth of 3.4% to EUR48.4m, EBIT up 349.7 % to EUR2.2m

Miko Group Miko MAAS

TURNHOUT, Belgium – Miko released yesterday its half-year results for 2021 reporting a revenue growth of 3.4% to EUR 48.4 million, recurring EBIT up 349.7 % to EUR 2.2 million and recurring EBITDA up 43.4 % to EUR 6.6 million. Until June 2021, the Miko Group focused on two core activities: coffee service and plastics packaging. The latter unit (“Miko Pac”) was sold to the German packaging group PACCOR.

Determination of the recurring EBIT and EBITDA, each of which increased by 349.7 % and 43.4 %, to EUR 2.2 million and EUR 6.6 million respectively, involved a correction of all the elements associated with this sale of the plastics department. After the same adjustments, the net result evolved from a net loss of EUR – 1.3 million in 2020 to a net profit of EUR 1.2 million in 2021. The corrections related to such elements as recorded capital gains, transaction costs, external consultants etc..

The 2020 half-year figures were also adjusted (elimination of the results of the plastics packaging activities). Without these adjustments the total EBIT and EBITDA increased by 1,041.7 % and 260.9 % to EUR 45.1 million and EUR 49.5 million respectively. The net profit amounted to EUR 44.1 million.

The remaining activity relates to “coffee service”. This involves offering coffee services under the motto of “your coffee, our care” to the out-of-home segment, such as offices, companies, the hospitality sector and institutions. This is done through numerous international daughter companies.

COVID continued to hamper Miko’s operations during the first six months of this year in the form of people working from home and their limited access to the hospitality sector. This first half-year of 2021 is compared to the same period in 2020. During 202 there were no COVID related issues for a two and a half month period. In spite of this, the coffee service department reported growth in revenue of 3.4 % to EUR 48.4 million. Investments amounted to EUR 4.6 million.

Key events

In March, Miko announced the sale of its plastics packaging department, Miko Pac. Over the years, Miko’s core activities, plastics processing and coffee service, became fully independent, and each had their own investment needs.

Given that there was only one investment portfolio, and to enable both departments to realise their own growth ambitions, the decision was taken to look for a buyer. German company PACCOR was considered to be a very good match. PACCOR has been very successful in the same market segments as Miko Pac, offering a broad set of products and a wide range of production techniques and R&D initiatives.

That same month, Miko announced the acquisition of a 25 % shareholding in MAAS. This participation was increased to 92 % in July. The remaining shares came in the hands of the management. MAAS, located in Eindhoven in the Netherlands, recorded pre-COVID revenues of EUR 70 million, with a workforce of 500. It installs coffee and vending machines, particularly at large companies, public institutions and universities.

It is also responsible for technical support and supplying all the necessary ingredients, besides coffee also milk, tea and hot chocolate. In addition, MAAS supplies a broad range of soft drinks, snacks and healthy bites under the motto “Treat Yourself Well”. In recent years the company has focused extensively on sustainability, developing such initiatives as impact@origin and impact@footprint.

As a result of the increase in people working from home, Miko launched its www.coffeeathome.be e commerce platform in May. Miko uses this platform to supply the full range of its coffee brands, such as Miko, Puro, Bruynooghe, Grand Milano, doing so in all sizes, forms and weights, such as 250 g, 1 kg, beans, ground coffee, coffee pads and capsules. The offering also includes sample packages, high-grade tea, biscuits and chocolate.

Expectations

According to Miko Group CEO Frans Van Tilborg: “Over recent months, we have observed an increase in sales compared to 2020. We have yet to achieve similar volumes to those of 2019. This is linked to the new teleworking phenomenon. While we anticipate that this will decrease post-COVID, teleworking is here to stay.

The acquisition of MAAS will enable us to put Miko on the map as a major European coffee service provider. We believe that a combination of our new size and our flexibility will generate even more opportunities for acquisitions. Synergies and cross-fertilization between Miko and MAAS will instil new dynamics into our coffee department.”

About Miko

Miko has been active in coffee service for over 200 years, and was floated on Euronext Brussels in 1998. Miko is an international group with companies in Belgium, France, UK, the Netherlands, Germany, Denmark, Norway, Sweden, Poland, the Czech Republic, Slovakia, and Australia.