MARR Progressive and constant recovery of out-of-home consumption at the end of a difficult first half-year
The acute phase of the health emergency has been overcome. Revenues in the first half-year were affected by the lockdown which brought foodservice to a standstill. Positive signs after re-opening with a good outlook for the second half of the year.
Rimini, 1 July 2020 – MARR S.p.A. (Milan: MARR.MI) the leading company in Italy in the sale and distribution of food products to the foodservice, closed the first half of the year with lower revenues, in line with the short-term forecasts already made known in mid-May during the presentation of the first quarter figures.
After a very positive start to the year, out-of-home food consumption and tourism were brought to an almost complete standstill for more than three months, with positive signs of recovery from mid-June.
Despite this, the total provisional management figures for revenues for the first half-year exceeded 440 million Euros, with an obviously significant reduction compared to the same period of last year, but with a trend showing progressive recovery at the end of the half-year.
The result achieved confirms the dynamic nature of the Company and the validity of the products and marketing related initiatives implemented, which have kept the relationship with the Market and Clients constant and vital even during the most difficult period of the lockdown and which we believe have certainly strengthened MARR’s competitive position. In this regard, it would be useful to highlight how, for example, the new line of products devised specifically for food delivery and take-away has been accompanied by a very positive response from the foodservice market. A similar positive response has been witnessed in the sector of fresh products such as seafood and fruit and vegetables, that has seen, as regards the latter, draw the benefits deriving from the acquisition and integration of SiFrutta.
The confirmation of the positive outlook of this approach, pursued with determination throughout the period, can also be seen in the assessment of the figures relating to the revenues in the reference channels, and thus in Street Market and Chains&Groups client segments and Canteens, achieved in recent weeks, especially following the progressive re-openings.
Thus, in the latter part of June, compared to the same period of the previous year, over 80% of the clients have significantly resumed their business with consumption now higher than 75% of their historical.
All of this leads to reasonably confirm that the scenario already envisaged in May is concretely sustainable. Specifically, we expect that in the third quarter, and thus in the most important period for tourism activities in this country, recovery in consumption will strengthen, with the possibility of achieving results for the period that are nearer to the typical results of recent years.
Similarly, it is reasonable to expect the progressive realignment with historical values already in the first part of 2021, with the concrete possibility of comparable results starting in the second half of next year.
All of the available elements confirm that there are no structural obstacles to the possibility that out-of-home food consumption levels will once again represent one-third of total food consumption in Italy in the medium-term.The most recent signs also confirm that the supply market is ready to accept a selection process to the benefit of the more structured businesses and favouring further natural consolidation also through aggregation activities, an opportunity that MARR intends to make the most of.
Luca Macario Antonio Tiso
mob. +39 335 7478179 tel. +39 0541 746803
***This press release contains forecast elements and elements which reflect the current opinions of the management team (forward-looking statements), especially as regards the future outlook, the realisation of investments, the performance of cash flows and the evolution of the financial structure. The forward-looking statements by nature include a component of risk and uncertainty because they depend upon the occurrence of future events. The effective results may differ even significantly from those announced because of a multitude of factors including, merely for example: the performance of the market of out of home food consumption (“foodservice”) and the flow of tourists into Italy; the evolution of the price of raw materials on the food sector; general macroeconomic conditions; geopolitical factors and developments in the regulatory framework.