TURNHOUT, Belgium – Miko, the Euronext-listed specialist in coffee service and plastic packaging, posted in the first half of 2018 a 0.6 % rise in turnover. Net profit rose by 9.6 %. EBIT and EBITDA fell by 1.5 % and 3.4 % respectively.
Consolidated Results
Turnover rose by 0.6 % in the first six months, compared with the same period last year, from EUR 106.8 million to EUR 107.5 million. More than three quarters of the Group’s turnover was achieved abroad.
EBIT (profit from operational activities before costs and taxes) amounted to EUR 8.0 million (down 1.5 % compared to the first half of 2017).
EBITDA (profit from operational activities before financial costs, taxes, depreciation and amortisation) amounted to EUR 13.8 million (down 3.4 % compared to the first half of 2017).
The financial result was EUR – 0.4 million, which is EUR 0.1 million higher than in 2017.
The net profit was EUR 5.3 million, marking a 9.6 % rise compared to the first six months in 2017. This substantial increase is also attributable to the reduction in the tax rate in Belgium.
Sector Information
The coffee service division achieved a turnover of just under EUR 52.3 million in the first six months. This is 2.8 % down on the previous year and accounts for 48.7 % of group turnover. This drop is reflected in a fall in EBITDA by 11.9 %. The main reason for this is that a major one-off contract in Denmark last year gave the results a considerable boost. During the first half year, investments of EUR 2.3 million were made in this division.
The plastics division achieved a turnover of EUR 55.2 million, marking a rise of 4.0 % compared with last year. This sector therefore accounts for 51.3 % of the total turnover. The rise in turnover mainly occurred in Poland, Germany and in the half-owned subsidiary Innoware in Indonesia. The operating cash flow (EBITDA) for the plastic packaging business rose by 6.5 %. EUR 2.9 million was invested in the first 6 months.
Key Events
In July 2018 Miko announced the takeover of the coffee service company Maas, based in Denmark. The company was literally on the verge of bankruptcy. Miko decided to make a fresh start with the new management, based on a 75/25 ownership structure. Restructuring has already resulted in the number of staff being reduced from 75 to 55. The expected turnover is EUR 11 to 12 million, with the intention to achieve break-even EBITDA over the year 2019.
In August of this year, the takeover of the UK-based “The Office Coffee Company” was announced. The company and its 16 employees generate a turnover of almost EUR 2 million. The aim of this takeover is to consolidate the company’s presence in the office market in the UK, thereby making it slightly less dependent on the hospitality sector.
Prospects
“We were spoilt last year by a major one-off contract in Denmark. We achieved extremely strong growth then. If we set this fact aside, we’re happy with the performance of the first six months. In the second half of this year, the impact of the Danish contract will increase compared to the second half of 2017. In addition, with Maas, we have taken over a company which was almost bankrupt. This will undoubtedly affect to our short-term results. As a result of this takeover, we’ve actually made a firm decision to take a long-term approach to the business, and acted upon our strategy to further develop our coffee service division in Scandinavia.” commented Frans Van Tilborg, CEO of the Miko Group.
