Shareholders in Veganz Group have endorsed the German plant-based company’s strategic move to separate its subsidiaries.
Veganz Group plans to restructure its operations by creating individual subsidiaries and adopting a holding company model.
The organization, which recorded a loss of €4.8m ($5.6m) in 2024, largely due to declining sales, will retain majority ownership of its subsidiaries: Mililk, Happy Cheeze, Peas on Earth, and Veganz.
According to a company statement, “The new structure creates the basis for a clear focus as an innovative technology investment holding company and supports further international growth.”
Anticipating a name change to Planethic Group, Veganz Group believes the restructuring will enhance growth potential for each subsidiary. This adjustment will also facilitate investments in specific subsidiaries, providing more flexibility than investing in the entire group.
Founder and CEO Jan Bredack remarked, “With the measures decided today, we are laying the foundation for accelerated growth. The new holding structure and capital measures increase our strategic flexibility, improve the liquidity of our shares, and open up significant value enhancement potential for our shareholders.”
Bredack will transition out of the CEO role in October but will remain closely connected to the company as its largest shareholder.
He will now direct his focus towards indoor farming as the managing director of OrbiFarm, a business Veganz Group sold earlier this year for €30m, including a profit share.
Ryan Tegtmeier, who previously served as CFO of online supplements company Nu3 Group, will take over as CEO.
During the AGM on August 13, Veganz Group’s executive and supervisory boards received approval for the 2024 financial year.
Additionally, the company announced the resignation of supervisory board chairman Roland Sieker, with shareholder Evgeni Kouris filling the position.
In May, Veganz Group reported a 34% decrease in sales, totaling €10.8m for 2024.
Importantly, the DACH region (Germany, Austria, and Switzerland) constituted 95% of this total, with Germany accounting for 81% of the sales.
EBITDA losses narrowed to €2.4m from €6.3m in the previous year, while net losses decreased to €4.8m from €9.5m.
Earlier today, the organization announced that recent equity strengthens—through a rights issue and private placements—have bolstered its equity base to approximately €8.4m. Bredack stated, “With the additional placements, we have strengthened our equity base and thus created the necessary flexibility to consistently implement our growth strategy.”ence in the food manufacturing industry.