Veganz Group AG: Veganz publishes Annual Report 2022

Veganz publishes Annual Report 2022

• Cost reduction and efficiency improvement programme launched
• Sales channel food service expanded
• Continued focus on Germany and Europe
• Gross profit margin increased to 32.4 percent
• Consistent expansion of in-house production

(Berlin, 11 May 2023) Veganz Group AG (veganz.com), the only multi-category provider of vegan food in Europe, also had to contend with the ongoing economic slowdown: while the food retail and discount sectors focused on ensuring basic supplies for the population in the first few months of the year, the young core target group (Generation Z and Millennials+) were subsequently hit particularly hard by price increases due to their comparatively low incomes. The overall effect of this development was to make new listings of Veganz products and the implementation of promotional activities more difficult, leading to a decline in sales of Veganz Group AG to EUR 23.6 million (prior year: EUR 30.4 million). By contrast, the number of points of sale (POS) as of 31 December 2022 increased to 28,217 (31 December 2021: 25,199) – mainly due to a Christmas promotion in the discount segment with a total of 4,538 POS in the fourth quarter of 2022 (prior year: 3,340 POS).

Sales channel food service expanded
In 2022, the food retail sector continued to account for the largest share of sales of Veganz Group AG with 64 percent (prior year: 64 percent), followed by the drugstore business with 25 percent (prior year: 22 percent). However, the Company is also actively developing new sales channels: the comparatively new food service business – with the launch partners the football club RB Leipzig and the caterer Aramark – already contributed 8 percent to sales in its first full year (prior year: 1 percent). The food service customers of Veganz now also include Bakerman, Eurowings, Valora and Hack AG. However, the discount business – in which the Company has no fixed listings at present – suffered more than average compared to 2021 (with exceptionally strong promotional business) and only achieved a 3 percent share of sales in 2022 (prior year: 13 percent). Last but not least, since September 2022 Veganz has been selling selected Veganz products as exclusive bundles via online D2C business – enabling to reach the target groups directly where they are: in the digital space.

in EUR million	2022	2021
Food retail	15.1	19.4
Drugstore	5.9	6.7
Food service	1.9	0.2
Discount	0.7	4.1
Total	23.6	30.4

Continued focus on Germany and Europe
With a 90 percent share of sales, the DACH region (Germany, Austria, Switzerland) remained the most important sales market in 2022 for Veganz (prior year: 92 percent). At 74 percent, Germany remained the largest single market (prior year: 71percent) and continues to be the strongest focus. At 10 percent, the rest of Europe was slightly above the prior-year level (prior year: 8 percent), and the Company sees further potential here: after listings in Greece, Veganz has initially declared France as a further target market and is working on expanding sales here. And not to forget: the Europe-wide licence to print milk alternatives will give the Company the opportunity to open up new target markets with innovative products in the future.

in EUR million	2022	2021
DACH	21.3	27.9
Rest of Europe	2.3	2.3
Rest of world	0.0	0.2
Total	23.6	30.4

Gross profit margin increased to 32.4 percent
The gross profit margin rose to 32.4 percent in 2022 (prior year: 30.7 percent). With marketing expenses of EUR 3.7 million (prior year: EUR 3.5 million), adjusted EBITDA fell to EUR -11.3 million (prior year: EUR -5.5 million), due in part to the decline in sales. Given 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 EUR -12.3 million (prior year: EUR -9.8 million). Accordingly, EBIT and net loss for the year were EUR -13.3 million (prior year: EUR -10.8 million) and EUR 11.0 million (prior year: net loss for the year 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 46.5 percent (31 December 2021: 53.3 percent), respectively, as at 31 December 2022.

Consistent expansion of in-house production
Veganz Group AG aims to realise an increasing number of product ideas itself. To this end, the Company has already established three production facilities: The vegan Camembert cheese alternative "Cashewbert" is produced in the heart of Berlin. In October 2022, another production facility for plant-based cheese alternatives went into operation in Spielberg, Austria. From here, the demand of retail partners in Austria, Switzerland, Italy and Slovenia is primarily served. In addition, the Company has been producing its vegan smoked salmon – a sustainable algae-based fish alternative – in Neubrandenburg since June 2022. 
In December 2022, Veganz secured Mililk, a unique patented process for the production of 2D-printed milk alternatives. This will enable the Company to produce environmentally friendly and affordable milk alternatives in the future, which will be marketed via various products in the food service sector, in retail but also in the direct sales D2C.

"2022 was a truly challenging year, but we used the difficult situation for everyone involved as an opportunity to realign Veganz for the future," says Jan Bredack, founder and CEO of Veganz Group AG. "As well as repositioning ourselves from a retailer to an innovative food tech company, continuously expanding our in-house production, optimising our product range and focusing more on licensing business, we also secured an additional strategic pillar with the acquisition of an exclusive licence for the patented production and distribution of 2D-printed dairy alternatives in a fast-growing market."

in EUR million 2022 2021 Sales 23.6 30.4 Adjusted EBITDA -11.3 -5,5 One-off expenses 1.0 4,3 EBITDA -12.3 -9,8 Net loss for the year -11.0 -13,3       Gross profit margin (in %) 32.4 30.7 Net cash¹ 0.5 16.2 Equity ratio (in %) 46.5 53.3

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