Earnings development in the first half-year significantly above expectations – Management Board updates guidance again for the 2020 financial year
Munich, July 14, 2020 – The Management Board of zooplus AG (the “Group”), (WKN 511170, ISIN DE0005111702, ticker symbol ZO1), has today decided to update the guidance for the 2020 financial year that was communicated on May 7, 2020 based on the preliminary figures for the current quarter. This is the second consecutive time that the Management Board has raised its guidance for the current financial year based on very positive business performance.
From today’s perspective, zooplus AG now anticipates earnings before interest, taxes, depreciation and amortization (EBITDA) of at least EUR 40 m for the 2020 financial year (previous guidance: at least EUR 20 m; FY 2019: EUR 12 m). At the same time, the Management Board now expects year-on-year sales growth of around EUR 240 m (previous guidance: EUR 225 m; FY 2019: EUR 182 m), corresponding to a sales volume of approximately EUR 1.765 bn (previous guidance: EUR 1.75 bn).
Based on the preliminary figures, the Group achieved sales growth in the range of 18% to 19% year-on-year in the first half of 2020, and EBITDA in the range of EUR 25 to 30 m (H1 2019: EUR 4.5 m).
The rationale for the further update of this year’s guidance is the significant increase in operating profitability. In terms of costs, efficiency gains were achieved in marketing, while logistics efficiency was maintained at a high level, even in the current crisis environment. Improvements were also made in managing the product sales mix, which further supported the positive gross margin development.
Dr. Cornelius Patt, CEO of zooplus AG: “We have made good progress in all of our markets during the first half of the year, which was operationally challenging due to the impact of the coronavirus. Our performance in the current exceptional situation also underscores the strength of our business model. Our new customer business is benefiting from the increased interest throughout Europe in making purchases online, and our existing business is seeing a positive effect from the changes we made at the beginning of the year to strengthen customer loyalty. Further confirmation of the steady demand for pet food and accessories will be seen as the year progresses. Through these developments, we are ensuring the company’s long-term and solid potential for growth and profitability.”
The achievement of this further adjustment in guidance is based on the assumption that the further impact of the corona pandemic on both the Group and the overall economy will not deviate significantly from the extent of the impact currently expected.
zooplus AG will publish the results for the second quarter and first half-year of 2020 on August 18, 2020, and make them available for downloading on its website at https://investors.zooplus.com.
zooplus AG was founded in 1999 and today is Europe’s leading online retailer of pet supplies measured by sales. Sales totaled more than EUR 1.5 bn in the 2019 financial year. The company’s business model has been launched successfully in roughly 30 European countries. zooplus sells products for all major pet breeds. The product range includes pet food (dry and wet food and food supplements) and accessories such as scratching posts, dog baskets, and toys in all price categories. In addition to a selection of over 8,000 products, zooplus customers benefit from a variety of interactive content and community offerings. The pet supplies market is an important market segment in the European retail landscape. Gross sales of pet food and accessories within the European Union amount to around EUR 30 bn. Based on the continued vigorous growth anticipated in the European E-commerce market, zooplus expects its dynamic performance to continue.
Online at: www.zooplus.de