The Valora Group posts net revenue excelling pre-crisis levels in May and June 2022, increases EBIT in the first half of 2022 and confirms the guidance for 2022

Valora Holding AG / Key word(s): Miscellaneous The Valora Group posts net revenue excelling pre-crisis levels in May and June 2022, increases EBIT in the first half of 2022 and confirms the guidance for 2022 20-Jul-2022 / 07:01 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement.

---

Ad hoc announcement pursuant to article 53 LR

• Even in the current environment, Valora is confident about the value-creation potential of its foodvenience strategy and reconfirms its EBIT guidance for the full year 2022 (excluding costs related to M&A and strategic projects) of CHF 70 million (+/- ~10%). 
• In the first half of 2022, Valora generated external sales of CHF 1,213.2 million (HY 2021: CHF 1,030.4 million) – an increase of +17.7% or +20.7% in local currency on the prior-year period. Net revenue amounted to CHF 943.3 million, which was up +15.9% or +17.8% in local currency year-on-year (HY 2021: CHF 814.1 million). After a weak start to the year under the shadow of the Omicron variant, revenues for May and June 2022 were slightly above the pre-pandemic levels of 2019.
• Valora concluded the first half of 2022 with an EBIT of CHF 8.1 million (HY 2021: CHF 7.4 million). Excluding costs related to M&A and strategic projects, EBIT amounted to CHF 11.1 million, which on a comparable basis represents an increase of +41.9%. This growth was achieved without the significant COVID-19 related support received by Valora in the prior-year period. Group net profit came to CHF -5.4 million (HY 2021: CHF -3.8 million).
• The balance sheet confirmed its strength with an equity ratio before lease liabilities of 50.2% (31 December 2021: 51.0%). The leverage ratio was 2.3x EBITDA (FY 2021: 2.2x), which is on a par with the pre-pandemic level and well below the covenant ceiling.
• Valora successfully advanced its foodvenience strategy. Among other things, it tapped into the booming fast-casual market with the acquisition of Frittenwerk. It also expanded its cooperation with Oel-Pool, which will put the avec format at the forefront of Swiss convenience brands.
• On 5 July 2022, FEMSA announced the acquisition of Valora with the intention to jointly develop the European market leader in convenience stores and food services. FEMSA will make an all-cash offer for all publicly held registered shares of Valora Holding AG (Valora) for CHF 260.00 per share. Valora’s Board of Directors recommends unanimously that shareholders accept this offer. The transaction process is ongoing.

At the beginning of the year, Valora’s business was still severely impacted by the pandemic. Omicron constraints dominated the retail and food service sector, especially in the first quarter of 2022. The easing of government restrictions came later than expected, and in Germany even with an additional time lag. Following the gradual lifting of restrictions, however, Valora has experienced a strong recovery in revenue in the last two months.