EQS-News

Veganz Group AG: Veganz with weak first half of 2022 due to further economic slowdown

EQS-News: Veganz Group AG / Key word(s): Half Year Report Veganz Group AG: Veganz with weak first half of 2022 due to further economic slowdown 29.09.2022 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement. Veganz with weak first half of 2022 due to further economic slowdown

• A world in transition
• Lack of discount business, further growth in food service
• Focus on Germany and Europe
• Package of measures adopted
• Innovations to navigate turbulent times
• Guidance 2022 adjusted

(Berlin, 29 September 2022) Veganz Group AG (veganz.com), the only multi-category provider of vegan food in Europe, was also not spared from the effects of the war in Ukraine: apart from the incalculable human tragedy, there have also been major economic repercussions and significant risks for the real economy – especially with regard to global supply chains and sales markets, as well as energy needs and the provision of credit. As a result, the shortage of vital commodities continued and caused inflation to soar. Prices rose in almost all relevant areas of consumption, leading to general uncertainty among consumers and severely curbing their propensity to consume¹ – especially with regard to groceries: sales in the food retail sector declined more sharply than at any time since 1994².

Whereas in the first few months of the year the food retail and discount sectors focused on ensuring basic supplies for the population, the young core target group (Generation Z and Millennials+) have recently been hit particularly hard by the current price increases due to their lower incomes. However, the resulting scaling back of their lifestyle does not mean a fundamental change in their values and attitudes: climate and environmental protection continue to be strong drivers of the younger generation’s consumption decisions, even if their focus naturally shifts to other issues in times of crisis. Overall, these developments made the new listing of Veganz products and the planning of promotional activities in the discount sector almost impossible during the first six months of 2022. Due in particular to the loss of promotional business and the dwindling propensity of consumers to purchase goods, Veganz Group sales of EUR 12.6 million in the first six months of 2022 were down on the previous year (prior year: EUR 16.9 million). Likewise, sales at the individual company level of Veganz Group AG decreased to EUR 11.5 million (prior year: EUR 15.6 million). The number of points of sale (POS) as of 30 June 2022 decreased to 22,410 (31 December 2021: 25,199), whereby the decline of 3,340 POS in the discount sector due to the absence of promotional business was partially offset by the increased number of POS in the Company’s regular business. In a year-on-year comparison, the growing number of POS in its regular business more than compensated for the decline in its discount business by 2,160 POS (prior year: 22,264).