A fall in sales following the ongoing removal of underperforming vending units in Italy and Switzerland was largely offset by higher commuter footfall at transport hubs across Germany, the UK and Spain
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Selecta Group currently operates 365,000 vending machines across 16 European markets | Photo credit: Selecta Group
The ongoing removal of underperforming vending units has boosted Selecta Group’s third quarter income, despite the strategy leading to a slight fall in sales.
The Swiss automated coffee and food vending operator reported adjusted EBITDA grew 11% in the three months ended 30 September 2023 to reach €62.6m ($67m).
However, group sales fell 1.5% year-on-year to €292.5m ($312.8m), with revenues in Italy, Switzerland and the Nordic countries posting the largest decline in revenues.
Germany remains Selecta Group’s largest market by sales, followed by the UK and Spain, which both achieved robust high average daily sales per machine, particularly in the public and horeca segments.
Total average daily sales per machine reached €12.30 ($13.16), are were particularly high in the public segment, where increased commuter footfall at airports and railways across Europe lifted average daily sales per machines to €30.50 ($32.62).
“We are pleased to announce Selecta’s robust results, characterised by significant EBITDA growth and margin expansion, demonstrating successful transformation. Our relentless commitment to innovation and strategic partnerships continues to reinforce our Foodtech value proposition,” said Christian Schmitz, Selecta Group CEO.
Selecta Group’s coffee and vending business comprises 365,000 machines across 16 European markets.
The business achieved strong unit growth over the last 12 months, with its self-serve Foodies machines increasing 47% year-on-year to 1,533 points of sale. During the quarter, Selecta Group boosted its Foodies network by introducing self-serve, touchless payment smart fridges and coffee kiosks at Zealand University Hospitals in Denmark, London Stansted Airport and the headquarters of Swiss aerospace manufacturer Pilatus Aircraft.
Selecta Group’s self-serve coffee offer includes Starbucks We Proudly Serve, Nescafé, ZOÉGAS, Lavazza and its own brand, Pelican Rouge.
“We are pleased to announce Selecta’s robust results, characterised by significant EBITDA growth and margin expansion, demonstrating successful transformation. Our relentless commitment to innovation and strategic partnerships continues to reinforce our Foodtech value proposition,” said Christian Schmitz, Selecta Group CEO.
Selecta Group achieved 13% total sales growth in 2022 to reach €1.2bn ($1.2bn). Year-to-date sales are currently tracking 4% above the first nine months of last year, at €908.8m ($972m).