Veganz Group AG Reports Gross Profit Margin Improvement in Q1 2024

Veganz Group AG, a pioneer in plant-based food production, announced a continuous improvement in its Gross Profit Margin (GPM) during the first quarter of 2024, reaching 39.5% compared to 33% in the same period last year. This improvement is attributed to strategic portfolio optimizations and successful product introductions like Mililk®.

Despite an overall sales decrease to €3.7 million from €5.1 million in Q1 2023, due to a strategic reduction in product range for profitability, the company projects a recovery and growth in sales for the remainder of 2024. The sales decline was mitigated by strong performance in specific segments such as food retail and drugstores. Additionally, Veganz expanded into direct-to-consumer sales and entered new kiosk channels.

Germany remains the key market, contributing 74% to total sales. Furthermore, operational costs were managed effectively with minor increases in personnel costs due to new production facilities, balanced by a reduction in other operational expenditures.

In terms of financial performance, Veganz faced an EBITDA loss of €1.6 million, slightly deeper than the previous year, primarily due to costs associated with new product launches and initial scale-up expenses. The company holds a positive outlook for 2024, anticipating sales growth and an improvement in EBITDA driven by developments in in-house production capabilities and further product placement.