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We feel now is a pretty good time to analyse Veganz Group AG's (ETR:VEZ) business as it appears the company may be on the cusp of a considerable accomplishment. Veganz Group AG develops, produces, and sells plant-based food products under the Veganz brand name. The €13m market-cap company announced a latest loss of €4.8m on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which Veganz Group will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
According to some industry analysts covering Veganz Group, breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of €500k in 2027. Therefore, the company is expected to breakeven roughly 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 47% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Veganz Group given that this is a high-level summary, however, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
See our latest analysis for Veganz Group
Before we wrap up, there’s one issue worth mentioning. Veganz Group currently has a debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Veganz Group, so if you are interested in understanding the company at a deeper level, take a look at Veganz Group's company page on Simply Wall St. We've also compiled a list of key factors you should further examine:
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Historical Track Record: What has Veganz Group's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Veganz Group's board and the CEO’s background.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.