The quotation provider Do & Co entered into several large contracts in the 2018/19 fiscal year. An example of this is the new 15-year contract with Turkish Airlines (we reported). The company now points to the following big business: as reported, Lufthansa wants to sell its subsidiary catering company LSG Sky Chefs. Now it’s clear: Do & Co is one of three candidates. Also, the Swiss Gourmet Gate, as well as the Dnata from Dubai expressed interest. The bidding process may take several months, but the decision to sell is expected this year.
Do & Co recently won tenders for British Airways in London, Iberia in Madrid and Turkish Airlines. LSG will be a useful addition in Europe. “That's why we are there,” said Gottfried Neumaister, CEO of Do & Co, on Friday. But you will not accept it for sure. Capital increase is not planned.
ISU is the second largest provider in the world: about 35,000 employees recently received 3.5 billion Euros. LSG prepares more than 700 million dishes for 300 airlines. Companies like Deutsche Bahn and the Starbucks coffeehouse also buy LSG.
Employees of the cook – in anger
European business LSG last time invested in sales of 1.1 billion euros. “We are only interested in Europe, which we could do alone,” said Attila Dogudan, CEO and co-owner, at an annual press conference on Friday.
LSG works in Germany, Belgium, Portugal and Switzerland and employs 9,000 people in Europe. In the past fiscal year, Do & Co sales amounted to about 848 million euros, which is 1.6 percent less than in the previous year. Thus, the Vienna company is even smaller than the LSG European business. However, Do & Co has ambitious goals: 1.3 billion euros will be realized next year – even without a takeover.
In the local government in recent weeks there has been a certain resistance to the planned sale: employees are afraid of losing their jobs and losing their salaries.
Decreased sales, increased profits
The Do & Co consolidated result increased in the previous year by 8.3 percent to 26.4 million euros. The reason for the decline in sales were the negative consequences for the currency from the Turkish business and the discontinuation of the BB train service. Shareholders will receive a dividend of 0.85 euros.
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