The Miko Group’s coffee division generated a turnover of €122.4 million (about US$126 million) in 2019, an 11 per cent increase over the year prior.
This accounts for 54.5 per cent of Miko’s turnover, with the remainder coming from plastic packaging for the food industry.
Miko Group says the performance of the United Kingdom-based Office Coffee Company (OCC), which it acquired in 2018, was much better than initially anticipated. This led to an earn-out from the company that was significantly higher than envisaged
Without the one-off impact of the OCC earn-out, earnings before interest and taxes and earnings before interest, taxes, depreciation, and amortisation (EBITDA) within the coffee service division rose by 16.8 and 12.9 per cent respectively.
Miko Group says the coffee service division achieved a strong performance in nearly all subsidiaries.
Belgium showed significant progress and was able to close a few decent contracts under the slogan “Your coffee, our concern”.
Miko Koffie Service in the Netherlands carried out a small acquisition. A few new distributors joined the Miko network in France. And local subsidiary Kaffekompaniet in Sweden put the finishing touches on a total rebranding, and set up a small, local, and artisanal in-house roastery, which is now fully operational.
The acquisitions in the UK and Norway, finalised in 2018, also had a positive impact on the results. Including contribution, Danish subsidiary Maas, which Miko acquired in July 2018 while it was on the verge of bankruptcy, is now showing a positive EBITDA. The company was renamed Freehand during the year.
€8 million (about US$8.9 million) was invested in the coffee service business, the lion’s share of which went to coffee machines, which are leased or provided on loan to the customer.
“We are happy with the results in 2019. However, the impact of Covid-19, which has now been declared to be a pandemic, forces us to be cautious because it will have an immediate impact on our coffee service business, which primarily operates in the hospitality sector and offices,” says Frans Van Tilborg, CEO of the Miko Group.
“For this reason, we are proposing not to pay any dividend relating to accounting year 2019. For the time being, we will continue with our activities so that we can still play our role in the food chain.”