zooplus AG: Investing in accelerating growth to expand leading market position in the online retailing of pet supplies
- Target for earnings before taxes (EBT) in 2017 revised to a single-digit million amount
- 2017 sales target of around EUR 1,125 m
- Outlook unchanged for 2020 for sales of at least EUR 2 bn and an EBT of EUR 60 m in the existing customer business
Munich, September 15, 2017 – zooplus AG (WKN 511170, ISIN DE0005111702, ticker symbol ZO1), Europe’s leading online retailer of pet supplies, plans to invest more heavily in acquiring profitable new customers to achieve a sustainable acceleration in sales growth and thereby expand its leading position in the online segment. As a result, the Management Board of zooplus AG has decided to revise its existing 2017 full-year target for earnings before taxes (EBT) from EUR 17 m to EUR 22 m to a single-digit million amount in order to invest in the company’s growth.
At the same time, the Management Board of zooplus AG is setting its sales target for 2017 at around EUR 1,125 m. The primary goal is to significantly accelerate the company’s growth in the third and fourth quarters in order to create a strong basis for increased growth in 2018. This means that accelerating sales growth will also be the top priority in the year 2018.
By taking this approach, zooplus AG can invest even more heavily in sustainable growth and in expanding its leading market position while ensuring its penetration throughout Europe in an ongoing and intensely competitive market environment.
Dr. Cornelius Patt, CEO of zooplus AG, explained the revision to the earnings targets as follows: “Today, zooplus AG is Europe’s market leader in the online retailing of pet supplies by a clear margin. In the past several years, we have shown at the same time that we can operate sustainably and economically in this market segment by offering a compelling product range, maintaining very strong customer loyalty and achieving a very high level of cost efficiency. The market’s potential continues to be extremely high, and we would now like to create greater leeway to invest further in our product offerings and in increasing our sustainably profitable customer base, which will further strengthen our market position. Investments will not only be made in intensifying customer acquisition activities but also in the areas of logistics and IT. We are convinced that by making these investments we are taking the right approach in a highly attractive but also intensely competitive market.”
Based on the current perspective, the Management Board is also reconfirming the 2020 targets for sales of at least EUR 2 bn and earnings before taxes (EBT) of EUR 60 m in the existing customer business. Additionally, the company aims to finance its high growth through operating cash flows and available capital resources.
Investors and analysts are invited to join in a conference call scheduled today at 15:00 (CEST).
The dial-in information can be found on the zooplus AG Investor Relations page at http://investors.zooplus.com/en/reports-and-publications/financial-presentations.html
zooplus AG was founded in 1999 and today is Europe’s leading online retailer for pet supplies measured by sales. In the 2016 financial year, sales totaled EUR 909 m, roughly 74% of which was generated internationally. 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. Gross 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 ecommerce market, zooplus expects its dynamic performance to continue.
Online at: www.zooplus.com
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