Veganz Reports Decline in Sales for First Half of 2024

Berlin-based Veganz Group AG has reported a decline in sales for the first half of 2024, largely attributed to product range measures and investment in production capacities. The company's sales dropped to EUR 7 million, down from EUR 9 million in the same period last year. Despite a rise in gross profit margin to 36.1%, high investment costs in new products led to a deterioration in EBITDA, recorded at minus € 4.3 million.

Notable new investments include the innovative products Mililk® and Peas on Earth. These contributed to one-off expenses of € 573 thousand, affecting EBITDA. Adjusted for these expenses, EBITDA stood at minus € 3.7 million. The net loss for the period increased to € 5.5 million with cash and cash equivalents falling to € 2.5 million by the end of June 2024.

In the sales channels, food retail led with 57% of sales, followed by drugstores at 34%. Veganz also saw growth in eCommerce, generating € 161 thousand, up from zero the previous year. The DACH region remains the most critical market, accounting for 94% of sales.

The company has initiated cost-cutting measures and has conducted a successful brand relaunch, with first relaunched products showing growth of 7.5%. However, the guidance for 2024 has been adjusted to reflect anticipated lower sales and increased losses.