DGAP-News: Vapiano SE reports deviation from 2018 forecast and communicates new strategic accentuation

Vapiano SE reports deviation from 2018 forecast and communicates new strategic accentuation

• Slower and focused expansion to improve profitability
• Strengthening franchise cooperations
• Reducing complexity of the business model to improve the guest experience
• Focus on the Italian roots of "Fast Casual Dining"

Cologne, 16th February 2019 - As a consequence of the unsatisfactory business development, the Management Board of Vapiano SE (ISIN: DE000A0WMNK9, stock exchange symbol: VAO) developed a program of measures in the third quarter, which was further sharpened in the fourth quarter due to the continuing disappointing business development. In order to secure long-term financing and the implementation of the future strategy, the Management Board is currently in discussions with the financing banks.

On the basis of unaudited figures, Vapiano SE expects sales for the 2018 financial year to range around 370 million euros, organic growth of minus 1% and adjusted EBITDA of around 29 to 31 million euros (this includes an effect of 2.6 million euros for the signed sale of the US business, see Ad-hoc release dated January 3, 2019). The forecast for fiscal 2018 announced on November 27, 2018 (sales: 375 to 385 million euros, like-for-like sales growth: -0.5% to +0.5%, adjusted EBITDA: 34 to 38 million euros) will therefore not be achieved. The contributing factors for this development are the unsatisfactory operating performance in the fourth quarter of 2018 as well as the weak performance of some newly opened restaurants. Furthermore, the Management Board of Vapiano SE announces that, on the basis of impairment tests, unscheduled write-downs and further risk provisions totalling around 33 million euros are expected for the past fiscal year 2018, which will have a negative impact accordingly on the net result. The net result will be significantly lower than previous year (previous year: -29.6 million euros).
 

Cornelius Everke, CEO VAPIANO SE: "After a very disappointing operating performance in the financial year 2018, we will take advantage of the year 2019 to create a strategic transition and significantly reduce the complexity of our business model. Our top priority is to increase the company's profitability."
 

Measures for improving profitability

The overall focus of the strategy - in response to the growth strategy pursued in previous years - is now the consistent evaluation of the existing portfolio and the introduction of measures to ensure sustainable profitability.

Sustainable and focused expansion

In the future, the speed of new openings will slow down significantly. The focus will be on selecting attractive locations according to internally defined return criteria, while at the same time focusing on the markets with the highest return on capital. "Corporate Restaurants" and "Joint Venture Restaurants" will be focused in Europe and in particular major cities. For the markets outside Europe, Vapiano will examine alternatives similar to the measures already introduced in the USA. The investment funds that may be available are increasingly invested in the company's own restaurant portfolio in order to strengthen the guest experience in particular.

Increase operational excellence and focus on the guest experience

Vapiano has the goal of significantly reducing waiting times. In addition to the app and terminal solutions introduced in previous years, the processes and workflows within restaurants will also be substantially adapted in order to combine the use of digital solutions and direct contact with guests. Furthermore, the IT landscape will be further improved in order to ensure the flawless use of digital solutions. In this context, the expansion of take away and home delivery services will also be closely examined and adapted.

Reduction of complexity

The efficiency of the entire organization will be significantly increased. This includes, in particular, reducing the complexity of the business model and ensuring efficient operating procedures.

Focus on the Italian roots of "Fast Casual Dining"

In terms of food, the unique Vapiano DNA, characterized by fresh Italian dishes in the Fast Casual Dining concept, will be enhanced by adapting the menu and focusing on the Vapiano classics.
 

The current company presentation can be viewed at http://ir.vapiano.com.

The aforementioned consolidated annual result for the 2018 financial year is preliminary and is subject to audit by the company's auditors and Supervisory Board. The audited Vapiano figures for 2018 and the outlook for 2019 will be published on April 30, 2019.

 

About Vapiano

In 2002, Italian lifestyle brand Vapiano created a new category in system gastronomy with its innovative "fresh casual dining" concept combining elements from "fast casual" and "casual dining". The restaurant concept is based on quality, uncompromisingly fresh ingredients, and transparency. Pasta, pizza dough, sauces, dressings and desserts are handmade each day in every Vapiano. The dishes are prepared in front of the guests "à la minute" and "customized" to the guests' requirements. The recipe for success also includes the cosmopolitan ambiance. Long oak tables invite communication, a fully grown olive tree and a cozy bar and lounge area characterize the feel-good atmosphere found in every Vapiano. Vapiano also represents autonomy and individuality, so guests can choose between different "Guest Journeys". Guests decide whether they will order their food from the Vapianisti, at the terminal or via the Vapiano app, and whether they will pay via chip card or app. The company has also successfully been offering take away and delivery services in a growing number of restaurants so guests can enjoy Vapiano "anytime, anyplace, anywhere". The successful concept has quickly spread from Hamburg all over the world. As of December 31, 2018, there were 231 restaurants in 33 countries on five continents in the Vapiano network. Vapiano shares (ISIN: DE000A0WMNK9) have been traded on the Prime Standard segment of the Frankfurt Stock Exchange since June 27, 2017. Further information can be found at ir.vapiano.com.

Investor Relations contact:

Dafne Sanac
Mobil: +49 151 6283 2511
Telefon: +49 221 67001 303
E-Mail: d.sanac@vapiano.eu