DO & CO (DOC) Q3 25/26 earnings summary

Executive summary

• Revenue reached €1,867.12m for the first three quarters, up 5.2% at current exchange rates and 18.3% at constant rates year-over-year, marking the strongest period in company history.

• EBITDA rose 15.5% to €227.7m, EBIT up 17% to €163m, and net result increased 15.9% to €84.6m, with margin improvements across all divisions.

• Free cash flow nearly doubled to €182.9m, and equity ratio improved to 41.5%, with net debt to EBITDA ratio at 0.2.

• Major expansion plans include new gourmet kitchens, Demel Coffee Houses, Henry Retail, and restaurants, with ongoing global growth initiatives.

• Cash and cash equivalents increased to €266.94m, and market capitalization rose to €2,273.58m.

Financial highlights

• Revenue grew 5.2% at reported currency and 18.3% at constant currency, driven by all segments.

• EBITDA margin expanded to 12.2%, EBIT margin to 8.7%, and net result margin to 4.5% for the nine-month period.

• Q3 revenue reached €630m, with organic growth at 15.9% despite FX headwinds.

• Cash flow from operating activities rose to €199.6m, and CapEx year-to-date was €43m, with full-year guidance of €50–60m.

• EPS for the period was €7.70, up 15.9% year-over-year.

Outlook and guidance

• EBIT margin guidance for the year raised to 8.5%+, with next year targeted at 8.5%+ as well.

• Top-line guidance adjusted to €2.4–2.45bn due to FX impacts, with double-digit organic growth and sustainable margin expansion expected.

• Expansion into the Middle East and further growth in the U.S. and Europe planned over the next three to four years.

• New gourmet kitchen construction in Istanbul to open by end of 2027/Q1 2028.

• Management expects continued strong demand and growth, especially in premium segments.