Veganz Group AG / Key word(s): Change in Forecast
Veganz Group AG: Economic slowdown prompts Veganz to adjust guidance 2022 and introduce a package of measures
19-Sep-2022 / 15:46 CET/CEST
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Economic slowdown prompts Veganz to adjust guidance 2022 and introduce a package of measures
(Berlin, 19 September 2022) Global supply chain bottlenecks as well as consumer sentiment in the food retail sector, which has been adversely affected by energy price increases and general inflationary pressure, continue to have a negative impact on the business of Veganz Group AG. Veganz therefore adjusts its guidance for 2022.
Depending on the macroeconomic conditions, Veganz now expects a significant (previously: slight) decrease in sales for the fiscal year 2022, both at Group level and at individual company level of Veganz Group AG (prior year: EUR 33.5 million and EUR 30.4 million, respectively), but continues to assume a slightly lower EBITDA compared to the previous year (prior year: EUR -9.8 million).
To take account of the changed market environment, the Company has initiated three major measures with regard to in-house production, field sales force and marketing:
Veganz has stopped the investments for the construction of the planned Veganz Food Factory in Werder (Havel) and will implement the completed planning in a new context at another location in the federal state of Brandenburg. Meanwhile, the Company is continuing to invest in smaller, temporary production facilities for the in-house production of meat, fish, cheese and egg alternatives. This will enable a liquidity-preserving ramp-up of its own production, which will also allow for a quick adjustment to the respective demand situation and minimises production start-up risks.
In order to improve sales efficiency, the Company has already reduced the sales force from 50 to 30 as of 31 July 2022 and will gradually reduce it further to approximately 20 employees by April 2023. The required capacities can be increased on short notice in the event of positive changes in market conditions.
In addition, Veganz has changed the focus of its product communication and the selection of marketing channels and has adapted its strategic market cultivation to the current corporate situation in order to significantly reduce its planned marketing activities and costs and to concentrate on defined core and focus categories as well as products from in-house production. The Company therefore no longer anticipates a general expansion of brand awareness, but rather a target group-specific increase in awareness of the Veganz brand in the fiscal year 2022.
The Half-Year Report as at 30 June 2022 will be published on 29 September 2022.
Definitions of the alternative performance measures used:
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).
Veganz Group AG
Head of Investor Relations
T: +49 (0)170 6837016
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