zooplus AG successfully maneuvers through the first months of the corona pandemic
- Management Board raises sales and earnings guidance for the current financial year
- zooplus supplies customers throughout Europe without interruption during the corona pandemic
- Group benefits from sustained stable demand in the pet supplies segment
- Organic growth in new customers drives additional sales growth
- Technology-driven logistics network supports fast processing of an above-average order intake
Munich, May 7, 2020 – The Management Board of zooplus AG (the “Group”), (WKN 511170, ISIN DE0005111702, ticker symbol ZO1), has today decided to raise the previously forecast target for the 2020 financial year (sales growth in the range of the previous year, up by at least EUR 180 m / earnings before interest, taxes, depreciation and amortization (EBITDA) below the range of the previous year, but in a positive to neutral range).
zooplus AG is currently expecting sales in the 2020 financial year to grow by EUR 225 m compared to the previous year, corresponding to a sales volume of EUR 1.75 bn. This corresponds to a higher level of earnings before interest, taxes, depreciation and amortization (EBITDA), which is expected to reach at least EUR 20 m.
The circumstances prompting the update of the guidance compared to the target communicated on March 25, 2020 is the continuing robust demand from consumers in the pet supplies segment that the Group is recording both in the completed first quarter of 2020 and the first part of the second quarter of 2020. On the basis of preliminary figures, the Group generated sales of EUR 440 m in the first quarter of 2020 (sales growth vs Q1 2019: EUR 77 m, or 21%) and corresponding EBITDA of EUR 8.1 m (Q1 2019: EBITDA of EUR 2.2 m).
The primary driver of sales growth is the business with our loyal existing customers, reflecting customer confidence in the zooplus customer proposition, even and especially in times of crisis. The strong organic new customer growth generated during the crisis confirms zooplus’ positioning as Europe’s leading online specialist retailer for pet supplies and has further supports the company’s dynamic sales development in the first quarter of 2020.
Dr. Cornelius Patt, CEO of zooplus AG: “Due to the uncertainty about the further spread of the coronavirus and the associated effects, we started the year 2020 with only cautious optimism. However, it is now evident that pet supplies have developed into one of the most sought-after product groups in online retailing during the current corona pandemic. We have noted an exceptional consumer interest in all European countries since the beginning of March to the present time. Given our pan-European, technology-driven logistics network, we were able to meet above-average demand at all times and supply our customers largely smoothly. Sales continued to develop positively in April, making us confident that our strategic sales alignment and our successful corona crisis management will have a positive and sustainable impact and we are therefore raising our targets for the 2020 financial year.”
Thus, the Group is successfully maneuvering its way through another crisis since its foundation in 1999 and is once again demonstrating the resilience of the business model of Internet-based pet supply retailing in Europe. The achievement of the adjusted guidance is based on the assumptions that the impact of the corona pandemic on both the overall economic situation and the situation of the Group in the current financial year will not change significantly to the scale known at this time.
zooplus AG will publish its results for the first quarter of 2020 on May 14, 2020 and make them available to download 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
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