Tear Sheet: Selecta Group B.V.

During that period, sales increased 4.2% and S&P Global Ratings-adjusted EBITDA improved by more than 20%. The company's strong performance so far this year provides some visibility for fiscal 2023. We expect revenue growth of about 5%, fueled by price increases and a recovery in both the public and private sectors, across most geographies. Due to Selecta?s ability to partly pass on higher input costs from inflation through its effective pricing mechanism, its productivity measures, and cost-discipline initiatives, we expect profitability to improve. This as the group continues to improve its SMD (sales per machine per day) as it focuses on removing underperforming machines. We expect Selecta to continue to incur exceptional costs over the next 12-24 months, but these

...January 4, 2024 Retail and coffee services company, Selecta, demonstrated a strong improvement in operating performance in the first nine months of fiscal 2023 (ending Dec. 31, 2023). During that period, sales increased 4.2% and S&P Global Ratings-adjusted EBITDA improved by more than 20%. The company's strong performance so far this year provides some visibility for fiscal 2023. We expect revenue growth of about 5%, fueled by price increases and a recovery in both the public and private sectors, across most geographies. Due to Selecta's ability to partly pass on higher input costs from inflation through its effective pricing mechanism, its productivity measures, and cost-discipline initiatives, we expect profitability to improve. We now expect adjusted leverage (including preferred shares) of 9.5x-10.0x from fiscal 2023, compared to about 11.7x at the end of fiscal 2022. This as the group continues to improve its SMD (sales per machine per day) as it focuses on removing underperforming...

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