Veganz Group AG / Key word(s): Half Year Results
26.09.2024 / 08:17 CET/CEST
The issuer is solely responsible for the content of this announcement.
(Berlin, 26 September 2024) VEGANZ GROUP AG: Veganz with decline in sales due to product range measures in the first half of 2024 26.09.2024 / 08:17 CET/CEST The issuer is solely responsible for the content of this announcement. - Decline in sales due to further product range and customer optimisation - EBITDA deterioration due to investment costs in own production - Share of sales with In-house produced products increased to 18% - Cost measures initiated - Brand relaunch successful at the POS - eCommerce continues on growth path - Guidance 2024 adjusted (Berlin, 26 September 2024) Veganz Group AG (veganz.de), the only multi-category supplier of vegan food in Europe, focused on investments in production capacities for the innovative products Mililk® and Peas on Earth in the first half of 2024 and at the same time carried out further portfolio optimization to increase profitability. As a result of these measures, the gross profit margin rose to 36.1% (previous year: 33.8%) and sales from in-house productions to 18% (previous year: 2.4%). Nevertheless, sales fell to EUR 7 million (previous year: EUR 9 million), partly due to stagnating consumer spending. Despite cost reduction, the high level of investment in production capacities and innovative products led to a lower EBITDA of minus € 4.3 million (previous year: minus € 3.1 million). However, this includes one-off expenses totaling € 573 thousand directly related to the first production trials and launches of the new products Mililk and Peas on Earth meat alternatives. Excluding these one-off expenses, adjusted EBITDA for the first half of 2024 was minus € 3.7 million. The net loss for the period amounted to € 5.5 million (previous year: net loss for the period of € 4.2 million). Cash and cash equivalents amounted to € 2.5 million on 30 June 2024 (31 December 2023: € 5.3 million). Equity and the equity ratio fell further to € 1.1 million and 5.2% respectively (31 December 2023: € 6.5 million and 26.1% respectively). Increase in sales in eCommerce In the first half of 2024, food retail continued to account for the largest share of our sales at 57% (previous year: 59%), with the drugstore business in second place at 34% (previous year: 30%). With a sales share of 5% (previous year: 5%), the new food service sales channel showed continuity. In the discount business, Veganz recorded a decline and achieved sales of around 2% of total business (previous year: 6%). The eCommerce business was successfully expanded further and generated € 161 thousand in sales, representing 2% of total sales (previous year: 0%). | In Mio. Euro | H1 2024 | H1 2023 | | Lebensmitteleinzelhandel | 3,99 | 5,35 | | Drogerie | 2,38 | 2,71 | | Discount | 0,10 | 0,56 | | Food Service | 0,37 | 0,44 | | eCommerce | 0,16 | 0,00 | | Summe | 7,00 | 9,06 |
Germany remains the most important sales market With a 94 per cent share of sales, the DACH region (Germany, Austria, Switzerland) remained the most important sales market in the first half of 2024 (previous year: 90 per cent). At 80 per cent, Germany remained the largest single market, which continues to be the strongest focus (previous year: 79 per cent). At 6 per cent, the share of sales in the rest of Europe was below the previous year's level (previous year: 10 per cent). | In Mio. Euro | H1 2024 | H1 2023 | | DACH | 6,62 | 8,15 | | Sonstiges Europa | 0,38 | 0,91 | | Sonstiges Ausland | 0,00 | 0,00 | | Summe | 7,00 | 9,06 |
Gross profit margin improved, EBITDA still influenced by production start-up costs The gross profit margin of Veganz Group AG rose to 36.1% in the first six months of 2024 (previous year: 33.8%). This development is mainly due to a significant improvement in our product mix as a result of the portfolio optimization measures already discussed and the launch of new products and thus represents a further step towards a financially sound product range. EBITDA at the end of H1 2024 was EUR -4.3 million (previous year: EUR -3.1 million). The decline can be explained by the lack of sales, which was only partially offset by the higher gross profit margin and the new product innovations - which are still in the launch phase. As far as the cost structure is concerned, we recorded an increase in personnel costs to EUR 2.3 million (previous year: EUR 1.9 million) due to the new production facilities in Ludwigsfelde and Cuxhaven, while all other cost blocks continued to fall to EUR 4.4 million (previous year: EUR 4.7 million). However, of the total costs, we can attribute around EUR 0.6 million to the production build-up of Mililk® and Peas on Earth as well as one-off marketing expenses for the launch of Mililk®. Adjusted for these non-recurring cost items, the EBITDA loss totalled EUR 3.7 million. The net loss for the period totaled EUR 5.5 million. Cash and cash equivalents amounted to EUR 2.5 million as at 30 June 2024 (previous year1: EUR 5.3 million), after payment of interest of EUR 0.7 million on the bond. | in Mio. Euro | 6M 2024 | 6M 2023 | | Sales | 7,0 | 9,1 | | Cost of Materials | 4,4 | 6,0 | | Personnel expenses | 2,3 | 1,9 | | Other operational expenses | 4,4 | 4,7 | | - Marketing expenses | 0,8 | 0,7 | | - Direct costs | 1,8 | 1,6 | | - Indirect costs | 1,8 | 2,4 | | Adjusted EBITDA | -3,7 | -3,1 | | One-off expenses | 0,6 | 0 | | EBITDA | -4,3 | -3,1 | | Net result | -5,5 | -4,1 | | | | | | Gross profit margin (in %) | 36,1 | 33,8 | | Cash1 | 2,5 | 5,3 | | Financial liabilities1: Bond | 9,6 | 9,6 | | Financial liabilities1: Crowdfunding | 1,8 | 1,8 | | Equity ratio1 (in %) | 5,2 | 26,1 |
Product range prepared for sales scaling The brand relaunch of the Veganz brand carried out by Veganz Group AG is proving successful at the POS. The first relaunched products are achieving growth of 7.5%. In the split between attitude and behaviour, animal welfare is the strongest aspect among consumers (48%) for sustainable behaviour when shopping. By emphasising the visibility of the Veganz name, the brand relaunch successfully capitalises on this and activates consumers at the shelf. By taking over the assets of Happy Cheeze, Veganz Group AG was also able to successfully reactivate the Happy Cheeze brand, which is sold exclusively in organic specialist shops, in the first half of 2024 by means of a relaunch. Marketing activities for the Mililk brand were intensified in the first half of the year. Veganz used influencer marketing, digital ads, couponing and partner campaigns within the Thermomix community to support the market launch in German retail. In addition to the launch of the branded product, Mililk was also launched in the Rewe Group's own brands. The Veganz product portfolio was optimized for maximum profitability and marketability and the brands were strengthened for market success in order to continue to be successful in a competitive environment. ‘In a challenging market environment, we have continued to focus on our transformation into a manufacturing food tech company. In doing so, we have further focused our existing business model and deliberately foregone sales by streamlining our product range. This puts us in a position to leverage greater market potential through our innovations and to scale quickly,’ says Jan Bredack, founder and CEO of Veganz Group AG. Outlook for 2024 adjusted Due to our measures to replace less profitable products with more profitable innovations that have not yet reached full distribution, we now expect a significant decline in sales for the 2024 financial year (previously: above the previous year's level) (previous year: € 16.4 million) and a significantly lower EBITDA compared to the previous year (previous year: minus € 6.3 million) (previously: further loss reduction). Despite our cost reductions, we will not be able to offset the loss of sales due to the streamlining of the product range and the start-up costs of the innovative Mililk ® and Peas on Earth at EBITDA level, meaning that we now expect higher losses for the year as a whole (previously: further loss reduction). | in Mio. Euro | 2024 | 2023 | | | Outlook | Actual | | Sales | Significantly under Previous Year | 16,4 | | EBITDA | Significant Increase of Losses | -6,3 |
About Veganz Group AG Veganz (veganz.de) – Good for you, better for everyone – is a brand and producer of plant-based food. Founded in 2011 in Berlin, Veganz became known as a European vegan supermarket chain. With a colourful and life-affirming corporate philosophy, Veganz succeeded in breaking up the vegan niche and establishing the plant-based food trend on the market. The current product portfolio includes products from breakfast to dinner, which are widely available in the DACH region. The Veganz range is continuously optimised with high-quality, innovative items and the sustainable value chain is constantly improved. As a transparent brand, Veganz is B Corp certified, compares the environmental balance of all its own products with all food products in the German-speaking region and regularly sets new benchmarks for a sustainable food industry. Contact: Veganz Group AG Massimo Garau CFO T: +49 (0)151 46569362 ir@veganz.de
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