Zooplus AG: Expansion of Pet Supplies Category Further Accelerates Growth Path of Leading Pan-European Online Retailer

DGAP-News: zooplus AG / Keyword (s): Quarterly / Interim statement / Quarterly results

zooplus AG: Expansion of Pet Supplies Category Further Accelerates Growth Path of Leading Pan-European Online Retailer

12.05.2021 / 07:30
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zooplus AG: Expansion of Pet Supplies Category Further Accelerates Growth Path of Leading Pan-European Online Retailer

  • Strong sales growth of 16% to 509 million euros in the first quarter of 2021; adjusted growth rate of 22% in Q1 2021 vs normalized revenue in Q1 2020
  • Two-year growth trend with continued strong momentum (Q1 2021 vs. Q1 2019: CAGR 18% and Q4 2020 vs. Q4 2018: CAGR 17%)
  • Subscribe & Save loyalty program sales (+ 32%) and private label operations (+ 34%) outperform total sales growth and boost long-term profit outlook
  • Solid gross margins and operating leverage bringing EBITDA to a level of 25 million euros (Q1 2020: 8 million euros); 4.8% EBITDA margin (Q1 2020: 1.8%)
  • Forecasts for 2021 confirmed, with sales and EBITDA performance currently assumed to be in the mid to upper range for the full year
  • zooplus focuses on very attractive category opportunities: increasing the pet population, humanizing pets, and premiumizing pet food and accessories

Munich, May 12, 2021 – zooplus AG, the leading online pet platform in Europe, continues its strong growth path in the first quarter of 2021. The company increased total sales by 16% to 509 million euros in the first quarter 2021 (Q1 2020: 440 million euros). The adjusted growth rate for Q1 2021 stands at 22% based on Q1 2020 normalized sales. Revenue growth was primarily driven by increased monetization of its customer base more and more loyal loyal and active members, combined with a new healthy clientele. The number of active loyal customers increased by 15% year on year.

Dr Cornelius Patt, CEO: “Zooplus’ performance in the first quarter of fiscal 2021 once again confirms the strong growth trajectory of our business. Fueled by trends in our category, such as increasing population of d ‘companion animals, premiumization and humanization of companion animals, we are ideally positioned as a number one player in our vertical sector to continue adding loyal customers to our ecosystem. Our customer focus ensures that we meet the needs of our customers. needs of our loyal customers while being very attractive to new customers. Therefore, we are developing our customer base, we are increasing the spend per account and we are developing the margin structure of our sales. It is the perfect basis for growth strong and profitable in the future ”.

Solid growth in net income and strong free cash flow generation
Strong gross margins and operating leverage generated EBITDA of 24.5 million euros (Q1 2020: 8.1 million euros), resulting in an EBITDA margin of 4.8% (Q1 2020: 1 , 8%). The gross margin of 30.7% (Q1 2020: 29.4%) benefited from an increase in premiumisation, an increase in high-margin sales and a decrease in promotional activities during the period under review. This positive profit development, combined with improvements in working capital, resulted in strong free cash flow generation of 48.1 million euros (Q1 2020: 40.4 million euros), bringing the total to cash on the balance sheet at 154 million euros.

Customer focus, focus on customer loyalty and increased profits from high margin businesses
Zooplus’ strategy of focusing on customer loyalty and recurring revenue maintained momentum in Q1 2021: zooplus achieved 97% revenue retention as an industry leader at the end of Q1 (Q1 2020: 94%), rising to 98% at the end of April 2021, with some markets and cohorts already showing performance above 100%. The number of active loyal customers increased by 15% (Q1 2020: 14%) to 5.3 million.

The success of customer retention is also reflected in the growing importance of its flagship loyalty tool ‘Subscribe & Save’, with sales growing 32%, accounting for 54% of active repeat sales (Q1 2020: 50%). With sales of 532 euros per account, the loyalty program generated 83% more sales per account compared to customers who are not on the “Subscribe and save” program. zooplus also continued to successfully cross-sell and cross-sell high margin products in the first quarter of 2021. As a result, the private label business grew by 34% (Q1 2020: 32%), representing 17.4% of total sales (Q1 2020: 15.1%). The share of orders for at least one own-brand product has increased year on year, underscoring the growing popularity of zooplus own brands with pet parents across Europe.

Increased pet population to increase the category for years to come
Pet ownership has increased over the past decade, with Covid-19 and lockdowns boosting pet ownership in 2020 across Europe. The increase in the pet population, the humanization of pets, and the premiumization of pet food and accessories are enduring trends that are fueling growth in the pet supplies category. It is estimated that the European pet supplies market will grow at a CAGR of around 6% until 2030 to reach 49 billion euros. In Europe, the online share is expected to reach a level of 18.6 billion euros (38% market share) by 2030. Given its unique position as the leading online platform for animals of company in Europe in the category, zooplus plans to achieve a total market share of 9% to 10% by 2025 and 11% to 13% by 2030. The attractiveness of the category is also underlined by the The Company’s expectation to achieve operating profitability of at least 4% EBITDA margin by 2025, paving the way for a long-term margin target of at least 6%.

Orientation for 2021
On the strength of these strong growth figures and favorable market winds, zooplus confirms its forecasts for 2021. For the full year, zooplus forecasts sales of between 2.04 and 2.14 billion euros. euros and an EBITDA of between 40 and 80 million euros. , leading to an EBITDA margin of 2% to 4%. From today’s perspective and based on current business development, the Management Board currently assumes that full-year revenue and EBITDA forecasts are within the mid to upper range of the forecast. .

Main financial highlights:

Q1 2021 Q1 2020 Switch
Sales In millions of euros 509 440 + 16%
Share of own-brand sales % 17.4% 15.1% + 2.4% p
Income retention rate
to 03/31
% 97% 94% + 3% p
Gross profit In millions of euros 156.2 129.3 +26.9
Gross margin % 30.7% 29.4% + 1.3% p
EBITDA In millions of euros 24.5 8.1 +16.5
EBITDA margin % 4.8% 1.8% + 3.0% p
EBT In millions of euros 16.2 0.7 +15.6
Consolidated net income In millions of euros 10.3 -0.5 +10.8
Earnings per share (undiluted) EUR 1.44 -0.07 +1.51
Earnings per share (diluted) EUR 1.41 -0.07 +1.48
Free movement of capital In millions of euros 48.1 40.4 +7.7
Active loyal customers
to 03/31
million 5.3 4.6 + 15%
Active customers at 03/31 million 8.6 7.8 + 10%

Company Profile:
zooplus AG is the leading online pet platform in Europe, measured by sales. Founded in 1999 as a German start-up, the company’s business model has been successfully launched internationally, dedicated to the mission of creating moments of happiness between pets and their parents in 30 European countries . With a wide and relevant product offering in the range of pet food and pet care and accessories, zooplus caters to more than 8 million pet parents across Europe, including over of 5 million made more than two orders in 2020. The product line includes well-known international brands. , popular local brands as well as high quality exclusive own brand lines for pet food, accessories, care products, toys and more for dogs, cats, birds, hamsters , horses and many other furry and non-furry friends. In addition, zooplus customers benefit from exclusive loyalty programs, a better value proposition, fast and reliable delivery as well as a smooth digital shopping experience, combined with a variety of content. interactive and community offers. Sales totaled over 1.8 billion euros in fiscal 2020, capturing around 7% of the European pet supplies market of 28 to 29 billion euros (net), both excluding line and line combined.

For more information on zooplus, please visit investisseur.zooplus.com or our international store at zooplus.com.

Press contact / investor relations:
zooplus AG
Diana apostol
Sonnenstrasse 15
80331 Munich
Telephone: + 49 (0) 89 95006-210
Fax: + 49 (0) 89 95006-503
Email: [email protected] | [email protected]
Website: https://investors.zooplus.com

12.05.2021 Distribution of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this advertisement.

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