Veganz Group has successfully raised €7.1 million ($8.2 million) through a new share issuance as part of its ongoing growth initiative.
Based in Berlin, Veganz Group reported a net loss of €4.8 million in the 2024 fiscal year. The company stated that this share offer has “significantly strengthened its equity base.”
The primary purpose of issuing new shares is to enhance the equity base, expand production capabilities, and finance further growth. The Veganz brand encompasses a range of vegan products, including confectionery, biscuits, cakes, and cheeses, as detailed in their stock exchange filing.
Looking ahead, Veganz Group plans to raise additional capital through a private placement with “strategic investors” in both Germany and internationally, offering shares at €15 each.
Founder and CEO Jan Bredack emphasized the significance of this successful share placement, noting: “It demonstrates the market’s confidence in our growth strategy and our sustainable business model.”
In July, Veganz Group announced plans to spin off its Mililk plant-based milk drinks division to attract external financing.
The company formed Mililk FoodTech to “leverage hidden reserves” and prepare for the entry of strategic investors in the third quarter. Recent discussions suggest a “pre-money valuation” of €80 million for Mililk, which is currently focused on developing plant-based alternatives and is also researching the market for juices and smoothies.
Moreover, Veganz Group recently announced plans to establish six additional production facilities across Europe. Additionally, they are exploring the possibility of opening a plant in the US for Mililk plant-based alternatives.
The recent share offering constitutes approximately 32% of the company’s total share capital and voting rights. Existing shareholders were permitted to subscribe at an 11-to-4 ratio.
In May, Veganz Group expressed intentions to restructure the company into five distinct business units, which include Veganz, Mililk, Happy Cheeze, Peas on Earth, and Orbifarm.
Additionally, Veganz sold its vertical farming business Orbifarm for €30 million to an undisclosed third party.
In the 2024 annual results released in May, Veganz reported a decline in cash reserves, which fell to €800,000 from €5.3 million in 2023. Additionally, overall sales decreased by 34% to €10.8 million.
The DACH region, which includes Germany, Austria, and Switzerland, contributed 95% of total sales, with Germany alone accounting for 81% of this figure.
Furthermore, EBITDA losses narrowed to €2.4 million from €6.3 million, while the net loss decreased to €4.8 million from €9.5 million the previous year.
Looking ahead, Veganz Group anticipates that both revenue and EBITDA for 2025 will remain flat compared to 2024 levels.
