Caterer DO & CO braces for tough year after first annual loss (updated)
16/06/2020 10:59
* No dividend proposal for 2019/20 business year
* 2020/21 results to be "considerably" affected by COVID-19
* Considers closure of airline catering locations
* Positive signs from restaurant, event catering businesses
(Adds outlook, detail, shares)
VIENNA, June 16 (Reuters) - Austrian airline and event
catering group DO & CO DOCO.VI reported its first annual loss
on Tuesday as demand slumped during the coronavirus pandemic and
on start-up costs related to a contract with British Airways
ICAG.L .
DO & CO, which also operates restaurants, said it had taken
restructuring measures in response to the pandemic and decided
not to propose a dividend for its 2019/20 business year.
With around 70% of revenue coming from its airline business,
the group said its 2020/21 financial year would be
"considerably" affected by the crisis and it didn't expect
passenger demand to fully recover before 2023.
It posted a net loss of 15.6 million euros ($17.7 million)
on 10% higher revenue of 935 million euros for the year to the
end of March.
The company is currently building a 35,000 square metre
kitchen at London's Heathrow airport, from which it will provide
catering and handling services on long- and short-haul flights
for British Airways and other airlines from September.
However, it said it was evaluating the closure of some of
its 32 kitchens located in 12 countries, where customers include
Turkish Airlines, Lufthansa's LHAG.DE Austrian Airlines and
Cathay Pacific 0293.HK .
The group, which caters for soccer club Bayern Munich and
operates Vienna's famous Demel cafe, said its restauant business
was picking up as coronavirus restrictions were lifted and there
were also pleasing signs at its event catering and gourmet
retail businesses.
It plans to open new food bars in coming months and launch a
service for the pre-ordering and pick up of ready meals and
ingredient boxes from central locations.
Do & Co shares, which have lost more than 40% this year,
were up 3% by 0905 GMT, in line with Austria's blue-chip index
.ATX .
($1 = 0.8827 euros)
(Reporting by Kirsti Knolle
Editing by Michelle Martin, Kirsten Donovan)
((kirsti.knolle@thomsonreuters.com; +43 1 2530 1650 13;))