Veganz Group AG: Veganz publishes preliminary figures for the fiscal year 2022 and guidance for 2023

Veganz publishes preliminary figures for the fiscal year 2022 and guidance for 2023

• Sales and earnings performance in line with expectations
• Guidance 2023 with significant earnings improvement

(Berlin, 16 March 2023) Veganz Group AG (veganz.com), the only multi-category provider of vegan food in Europe, also had to contend with the ongoing economic weakness in the fiscal year 2022: whereas the food retail and discount sectors focused on ensuring basic supplies for the population in the first few months of the year, the Company’s young core target group (Generation Z and Millennials+) have recently been hit particularly hard by the current price increases due to their comparatively lower incomes. The overall effect of this development was to drive sales of lower-cost private label brands and make the new listing of Veganz products and the planning of promotional activities more difficult. As a result, there was an expected decline in sales of Veganz Group AG to EUR 23.6 million, according to preliminary calculations (prior year: EUR 30.4 million). By contrast, the number of points of sale (POS) as of 31 December 2022 increased to a preliminary 28,217 (31 December 2021: 25,199) – mainly due to a Christmas promotion in the discount segment with a preliminary total of 4,538 POS in the fourth quarter of 2022 (prior year: 3,340 POS). The gross profit margin rose slightly to a preliminary 32.4 percent in 2022 (prior year: 31.3 percent). With preliminary marketing expenses of EUR 5.3 million (prior year: EUR 3.5 million), adjusted EBITDA fell to a preliminary EUR -10.6 million (prior year: EUR -5.5 million), due in part to the decline in sales. Despite the one-off expenses in the course of the cost reduction and efficiency improvement programme – among other things for personnel and consulting – amounting to EUR 1.0 million (prior year: one-off expenses for the private placement and IPO of EUR 4.3 million), EBITDA was a preliminary EUR -11.6 million (prior year: EUR -9.8 million) and thus also in line with expectations. Accordingly, EBIT and net loss were EUR -12.6 million (prior year: EUR -10.8 million) and EUR 13.3 million (prior year: net loss of EUR 13.3 million), respectively. Net cash and the equity ratio decreased to EUR 0.5 million (31 December 2021: EUR 16.2 million) and 39.7 percent (31 December 2021: 53.3 percent), respectively, as at 31 December 2022. It should be noted that net cash includes non-current financial liabilities – such as the EUR 10 million bond maturing in February 2025 and the crowdfunding of EUR 2 million.

in EUR million	Veganz Group AG
	2022	2021
Sales	23.6	30.4
Adjusted EBITDA	-10.6	-5.5
One-off expenses	1.0	4.3
EBITDA	-11.6	-9.8
EBIT	-12.6	-10.8
Net loss	13.3	13.3
Gross profit margin	32.4%	31.3%
Net cash1	0.5	16.2
Equity ratio	39.7%	53.3%

¹ Including non-current financial liabilities, i.e. EUR 10 million bond due February 2025 and EUR 2 million crowdfunding redeemable for the first time on 31 December 2023

"2022 was a really challenging year, but we reacted quickly to the permanently deteriorating market situation – with immediate measures to the Veganz Food Factory Germany, our sales and marketing activities and an additional cost reduction and efficiency improvement programme," says Jan Bredack, founder and CEO of Veganz Group AG.  "Above all, however, we saw this situation as an opportunity and used it to work on our future viability. In addition to repositioning ourselves from a trading company to an innovative food tech company, continuously expanding our own production, optimising our product range and focusing more strongly on the licensing business, we have secured an additional foothold for production and sales in a rapidly growing market with the purchase of the exclusive licence for the patented 2D printing process for milk alternatives  – while never losing sight of our heart's desire to protect the climate and the environment in all these issues."

Guidance 2023
Depending on the macroeconomic conditions – in particular the negative effects of the energy crisis and inflationary pressure on the consumer behaviour of our customers – Veganz Group AG expects sales in the fiscal year 2023 to be roughly at the previous year's level (prior year: preliminary EUR 23.6 million). However, due to the extensive cost reduction and efficiency improvement programme, as well as the expansion of in-house production with the start of the production facility in Ludwigsfelde, the Company expects a significantly improved EBITDA compared to the previous year (prior year: preliminary EUR -11.6 million).

in EUR million 2023 2022   Guidance Actual (preliminary) Sales Roughly at the previous year's level 23,6 EBITDA Significantly improved compared to the previous year -11,6

The Annual Report 2022 will be published on 11 May 2023.

About Veganz Group AG
Veganz (veganz.com) – Good for you, better for everyone – is the brand for plant-based food. Founded in Berlin in 2011, Veganz became known as the European vegan supermarket chain. With a colourful and life-affirming corporate philosophy, Veganz succeeded in opening up the vegan niche and establishing the plant-based food trend on the market. The current product portfolio comprises products from breakfast to dinner and is available in more than half of all European countries and at over 28,000 points of sale (POS) worldwide. In addition, the Veganz product portfolio is continuously optimised with high-quality, innovative items and its sustainable value chain is constantly being improved. For this commitment, Veganz was voted Germany’s most innovative food brand in a Handelsblatt 2021 ranking.

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