(Berlin, 28 September 2023) VEGANZ GROUP AG: VEGANZ WITH SIGNIFICANTLY IMPROVED EARNINGS IN FIRST HALF OF 2023

 

28.09.2023 / 07:35 CET/CEST

The issuer is solely responsible for the content of this announcement.

 

Veganz posts significantly improved earnings in first half of 2023

• Sales growth in core categories

• Sales decline due to strategic streamlining of product range and customer portfolio

• Significant improvement in gross profit margin and net result

• Cost-cutting and efficiency enhancement programme now having visible impact

• Germany remains most important sales market

• Set-up and expansion of in-house production progressing as planned

• Sales growth and further improvements in profitability forecast for 2024

 

(Berlin, 28 September 2023) Despite the ongoing weakness of the economy and further consumer restraint, Veganz Group AG (veganz.de), the only multi-category provider of vegan food in Europe, was able to increase sales by 5 percent [CH1][MG2]in its remaining core categories in the first half of 2023 following a streamlining of its product range.

 

Unadjusted total sales of Veganz Group AG amounted to EUR 9.1 million in the first half of 2023 (prior year: EUR 11.5 million). The difference in sales resulted from the Company’s decision to streamline its product range and optimise its customer base with the aim of improving profitability. This led to the delisting of selected products and the withdrawal of entire product categories (including vegetarian frozen pizza), as well as an optimisation of the customer portfolio – and thus to deliberately induced sales losses.

 

Sales growth in discount business

In the first six months of 2023, the food retail sector continued to account for the largest share of sales at 59 percent (prior year: 68 percent), with drugstores in second place at 30 percent (prior year: 24 percent). Compared to the previous year without promotional business, there was an encouraging return to sales in the German discount sector with a sales share of 5 percent in the first six months of 2023 (prior year: no sales). The food service sales channel achieved a sales share of 6 percent in the first half of 2023 (prior year: 8 percent).

 

in EUR million	H1 2023	H1 2022
Food retail	5.4	7.8
Drugstore	2.7	2.8
Discount	0.5	-
Food service	0.5	0.9
Total	9.1	11.5

 

Germany still most important sales market

With a 90 percent share of sales, the DACH region (Germany, Austria, Switzerland) was once again the most important market in the first six months of 2023 (prior year: 92 percent). At 71 percent, Germany remained the largest single market and continues to be the main focus (prior year: 81 percent). At 10 percent, the share of sales in the rest of Europe was slightly up on the previous year (prior year: 8 percent).

 

in EUR million	H1 2023	H1 2022
DACH	8.2	10.5
Rest of Europe	0.9	1.0
Rest of the world	0.0	0.0
Total	9.1	11.5

 

Gross profit margin and net result improved

The gross profit margin of Veganz Group AG continued to rise to 33.8 percent (prior year: 28.1 percent) in the first half of 2023, due mainly to an improved product mix and optimisation of the customer portfolio. With reduced marketing expenses of EUR 0.7 million (prior year: EUR 2.0 million), there were improvements in EBITDA and the net loss for the period to EUR -3.1 million (prior year: EUR -5.8 million) and EUR -4.2 million (prior year: EUR -6.8 million), respectively – despite the decline in sales, due in particular to the measures taken to reduce costs and enhance efficiency. Net liquidity as of 30 June 2023 amounted to minus EUR 2.7 million (prior year: EUR 0.4 million). However, this amount also includes long-term financial liabilities. Excluding the bond and crowdfunding, net liquidity amounted to EUR 9.0 million (prior year: EUR 12.3 million). The equity ratio stood at 40.6 percent (31 December 2022: 46.5 percent).

 

Focus on innovation and sustainability

In the first half of 2023, Veganz began operations at its new facility in Ludwigsfelde and launched production of its new and innovative plant-based milk alternatives, Mililk®, using the patented 2D printing process.

In the second half of the year, production capacities for Mililk® will be expanded and at the end of the year the production line for plant-based meat alternatives using peas (Textured Vegetable Protein, TVP) will go into operation.

There is high demand for both products produced at the new site in Ludwigsfelde and the production capacities created for Mililk® in particular have already been exhausted.

 

“Our strict focus on profitability, innovation and sustainability continues to be effective in the current challenging macroeconomic market environment,” says Jan Bredack, founder and CEO of Veganz Group AG. “Due in part to our package of measures, we were able to quickly and efficiently implement the successful, liquidity-preserving start-up of our facility for our sustainable and innovative product Mililk®.”

 

In the first half of 2023, Veganz Group AG also successfully received B Corp. certification. This independent B Lab certification involves a rigorous and holistic process in the five impact areas of corporate governance, employees, customers, environment and community. Veganz’s guiding principle of developing a social and sustainable business model to strengthen the community, ensure social cohesion and address climate change now also meets independent criteria.

 

Due to its extensive cost-cutting and efficiency enhancement programme, the streamlining of its product range, the optimisation of the customer portfolio and the expansion of its in-house production with the start-up of manufacturing at its Ludwigsfelde facility, the Company expects a significant year-on-year improvement in EBITDA (prior year: EUR -12.3 million).

 

Increased sales and improved profitability in 2024

Based on the healthy cost structures created over the past months and the launch and ramp-up of in-house production of its own products Mililk®, Cashewbert®, Bluebert®, as well as its meat and fish alternatives, Veganz Group AG plans to raise sales compared to 2023 and achieve a further improvement in profitability in 2024.

Agreements with customers for the listing of the Mililk® products, in particular, mean that capacity at the new production facility in Ludwigsfelde is already fully utilised and further production capacity is already being created.

 

 

in EUR million	H1 2023	H1 2022
Sales	9.1	11.5
Cost of materials	6.0	8.3
Personnel expenses	1.9	2.4
Other operating expenses	4.3	6.6
- Marketing expenses	0.7	2.0
- Direct costs	1.6	2.9
- Indirect costs	2.0	1.7
EBITDA	-3.1	-5.8
Net loss for the period	-4.2	-6.8
Gross profit margin (in %)	33.8	28.1
Net liquidity1,2	-2.7	0.5
Equity ratio (in %)2	40.6	46.5

 

¹ Including long-term financial liabilities, i.e. EUR 10 million bond maturing in February 2025 and EUR 2 million crowdfunding redeemable in December 2023

² Prior-year figures as of 31 December 2022

 

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