German pet supplies web shop Zooplus wants to find a new owner for itself next year, and is lowering its valuation to do so. Sales were somewhat disappointing in 2023, and this year the company expects a similar growth.
Reduced valuations elsewhere
Investor groups Hellman & Friedman (H&F) and EQT jointly acquired Zooplus in 2021, taking it off the stock exchange for 3.7 billion euros. However, they think that now is a good time to pass on the retailer to new owners, Lebensmittel Zeitung reports.
However, the annual report shows that investors have lowered their desired sales proceeds: while still valued Zooplus at 3.12 to 4.08 billion euros in 2022, now they only count on 2.68 to 3.75 billion euros as a reason comparable retailers also turned out to be worth less. However, should a sale earn them too little, they leave the possibility to take the retailer back to the stock exchange in 2026. That will be a job for the next CEO, however, as the previous CEO Geoffroy Lefebvre unexpectedly left in late November after just two years in charge.
Losses and disappointing sales growth
Moreover, the online retailer still struggles with heavy losses. Last year, it did almost double its adjusted EBITDA (from 42.7 to 80.4 million euros), but pre-tax profit remained 110.5 million euros below zero. This was partly due to the closure of a warehouse, for which the company booked impairments of 141.24 million euros.
Net sales rose 12 % to 2.68 billion euros, but the retailer had targeted a 14 % growth – the same as the year before. This year, Zooplus forecasts 12 % sales growth (to more than three billion euros) and a sharp EBITDA growth.
