Selecta Group profits rise following removal of underperforming vending units

Selecta’s coffee and vending business comprises 320,000 machines across 16 European markets | Photo credit: Selecta Group

Switzerland’s Selecta Group achieved strong profit growth last year as its strategy to remove underperforming units from its European vending machine network continues to yield results. 
 

The Cham-based coffee and food vending operator posted 14% year-on-year adjusted EBITDA growth in the 12 months ending 31 December 2023 to reach €246.8m ($267m). 

Selecta Group’s coffee and vending business comprises 320,000 machines across 16 European markets – 45,000 fewer net units compared to the end of the fourth quarter 2022. 

The removal of underperforming machines also contributed to lower annual sales growth. Selecta Group’s revenues increased 2% year-on-year to reach €1.2bn ($1.3bn), compared to 13% growth in 2022.  

However, the adverse impact of the policy was offset by significant contract wins throughout the year, including with German power management firm Eaton, Oslo University Hospital and Swedish airport operator Swedavia. 

The business said its self-serve Foodies micromarket network grew 28% last year to 1,825 units while its standalone Intelligent Vending machine segment nearly doubled to reach 919 units. 
 

“Our vision to become the European foodtech leader and distributor of world-class brands set us on a transformative journey in 2020. Today, Selecta's FY 2023 performance shows that the hard work and focused actions of all our teams are translating into improved operating and financial performance,” said Christian Schmitz, CEO, Selecta Group. 

In January 2024, Selecta Group announced a new pan-European partnership with UK-based Change Please. Selecta Group’s coffee solutions provider and roaster Pelican Rouge Coffee Roasters will create the Change Please blends for distribution across all 16 of its European markets.