Veganz makes a subdued start to the fiscal year 2022 and publishes full-year guidance

(Berlin, 23 May 2022) According to preliminary calculations, Veganz Group AG (veganz.de) had a subdued start to the fiscal year 2022: Compared to the exceptionally strong prior year period with extensive promotional business in the discount sector and a broad TV campaign, the first quarter of 2022 suffered in particular from global supply chain problems and the effects of the Ukraine war. In this context, the increased focus of the food retail and the discount sector on ensuring the basic supply made new listings of Veganz products and the planning of promotions in the discount sector, in which the company does not yet have any fixed listings of products, almost impossible. Sales of the Veganz Group, which are shown on a consolidated basis for the first time in the first quarter of 2022, therefore amounted to preliminary EUR 6.8 million (EUR 6.9 million, unconsolidated) falling below the prior year (prior year: EUR 8.8 million, unconsolidated). At individual company level of Veganz Group AG, sales decreased to EUR 6.3 million (prior year: EUR 8.0 million). Partly due to price increases on the supplier side, which Veganz will only be able to compensate through its own price negotiations with effect as of the end of the second quarter of 2022, the gross profit margin amounted to preliminary 29.5 percent (prior year: 30.3 percent). EBITDA decreased accordingly to EUR -1.9 million (prior year: EUR -1.3 million).

In addition, Veganz Group AG anticipates direct effects from the Ukraine war in the form of both delays and rising costs for the construction of the Veganz Food Factory in Werder (Havel), partly due to the global shortage of raw materials, for example in the steel sector. The Company therefore does not expect the new Veganz Food Factory to start production before the second quarter of 2023. However, a large part of the originally planned additional in-house production volume is going to be covered by suitable interim production facilities. The investment costs for the new production facility are now expected to be around 30 percent higher than the initial cost estimate of EUR 12.6 million.

For the fiscal year 2022, Veganz plans to expand brand awareness consistently further. Depending on the general conditions – in particular the expected worsening of supply chain bottlenecks, further negative effects of the Ukraine crisis and inflationary pressure on the consumer behaviour of customers, which cannot be assessed conclusively – the Company expects a slight sales decrease for the fiscal year 2022, both at Group level and at Company level of Veganz Group AG. Despite the non-recurrence of the one-off expenses required in the prior year due to comprehensive financing measures, the Company expects a slightly lower EBITDA compared to the prior year due to the sales decrease and the expected costs for the construction and expansion of the Veganz Food Factory.

*2022: Reported at consolidated Group level for the first time as of Q1 2022

The Annual Report as of 31 December 2021 and the Quarterly Statement as of 31 March 2022 will be published on 31 May 2022.

Definitions of the alternative performance measures used:

The gross profit margin is defined as gross profit as a percentage of sales. Gross profit refers to sales less cost of materials (cost of raw materials, consumables and supplies as well as of purchased goods).

EBITDA stands for earnings before interest, taxes, depreciation and amortisation. It is calculated by first adding sales and other operating income. The result is reduced by the cost of materials (consisting of the cost of raw materials, consumables and supplies and of purchased merchandise), personnel expenses (consisting of wages and salaries as well as social security contributions, pension and other benefit costs) and other operating expenses (adjusted for one-off expenses that are not part of the ordinary course of business).

Contact:
Veganz Group AG
Vanina Hoffmann
Head of Investor Relations
T: +49 (0)170 6837016
vanina.hoffmann@veganz.de