zooplus AG: Sales increase 21% in 2018 to more than EUR 1.3 bn
- Sales increase by EUR 231 m to EUR 1,342 m in 2018 (2017: EUR 1,111 m)
- Double-digit growth achieved in all 30 regional markets
- Sales of private label products grow disproportionally, rising 35%
- Sales retention rate increases to 95%
- New customer acquisitions accelerate in the fourth quarter of 2018
Munich, January 24, 2019 – Based on the company’s preliminary figures, zooplus AG (WKN 511170, ISIN DE0005111702, ticker symbol ZO1), Europe’s leading online retailer of pet supplies, achieved sales in the 2018 financial year of EUR 1,342 m (2017: EUR 1,111 m). This represents absolute growth of EUR 231 m, for another above-trend rise in absolute sales figures. The percentage increase in sales amounted to 21% and was in line with the guidance published for the 2018 financial year. Currency-adjusted sales growth was slightly higher and also amounted to a rounded 21%. These figures show that zooplus was able to successfully continue its long-standing strong growth trend in the 2018 financial year and consolidate its position as Europe’s market leader in online pet supplies. Double-digit growth rates were again achieved in all 30 national markets in the past financial year.
Sales in the particularly important pet food segment grew 23% compared to the previous year. As a result, the pet food segment’s share of total sales continued to rise, reaching a level of 85% in the reporting year (2017: 83%).
Sales of private label food and litter products performed particularly well. Over the past financial year, this segment grew 35% and significantly outpaced overall sales growth. This further expanded the share of high-margin private label products to an overall 14% of the total sales of food and litter.
The strong loyalty of its existing customers is the main driver of zooplus’ sales growth. The sales retention rate in the 2018 financial year rose to a record 95% (2017: 93%) in a continually fierce competitive market environment.
The development of the business with new customers was gratifying in the fourth quarter. After the positive development in new customers in the third quarter, this trend was reinforced further in the fourth quarter. With a total of 722 thousand registered new customers, zooplus added 21% more new customers in the final quarter of 2018 than in the third quarter.
Dr. Cornelius Patt, CEO of zooplus AG, in his comments on the company’s 2018 performance says: “With a year-on-year increase in sales of 21%, zooplus met its guidance in 2018 and was able to further consolidate its position as by far the leading online retailer of pet supplies. zooplus is clearly number 2 in the overall pet supply market throughout Europe and was once again able to narrow the distance to the current market leader. Particularly worth highlighting is our development in Poland, where we were able to achieve sales growth of almost 40% and reach more than EUR 100 m in sales. This already gives us a double-digit share of the overall market for brick-and-mortar and online sales combined.
The increase in the sales retention rate to 95% achieved in the 2018 financial year again demonstrates the high level of acceptance given to our product and service range in a market that continues to be fiercely competitive. At the same time, it is important to further strengthen our business with new customers. After the weaker development in the first half of 2018 and the corresponding impact on sales development in the quarters that followed, we saw a marked improvement in the third and fourth quarters of 2018. We will continue to advance this trend in the coming quarters and consistently pursue our growth path.”
zooplus will report its final results for the 2018 financial year and its forecast for the 2019 financial year when it presents the consolidated financial statements on March 20, 2019. This information will also be made available on the company’s website at http://investors.zooplus.com.
zooplus AG was founded in 1999 and today is Europe’s leading online retailer of pet supplies measured by sales. Based on preliminary figures, sales totaled EUR 1,342 m in the 2018 financial year. The company’s business model has been launched successfully in 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. Sales of pet food and accessories within the European Union amount to around EUR 26 bn. Based on the continued vigorous growth anticipated in the European e-commerce market, zooplus expects its dynamic performance to continue.