DO & CO AG

XMUN:DOQ

Record quarter: DO & CO said Q1 was the best first quarter in company history, with revenue of EUR 642 million, up 5% reported and 10.2% at constant currency.

Margins held up: Even with a EUR 40 million top-line hit from the Middle East conflict, all three divisions improved margins and EBIT margin rose to 8.8% from 8.6%.

Cash strength: Free cash flow more than doubled to EUR 46.9 million, and the company moved into a net cash position with net-debt-to-EBITDA at negative 0.07x.

Guidance unchanged: Management kept full-year guidance unchanged, with revenue growth of 6% to 8% reported, 11% to 14% at constant currency, and EBIT margin of 8.6% to 9%.

U.S. momentum: The FIFA World Cup and new airline wins, including American Airlines in London Heathrow, were described as important brand-building wins that could lead to more U.S. business over the next 2 to 3 years.

Capacity investment: The new Istanbul kitchen is expected to expand capacity to 500,000 meals a day, while management said it is also working on modular kitchen setups for future growth.