19 January 2023
("S-Ventures", the "Group" or "Company")
Trading Update, 2022 Results Date & Business Segment Reporting
S-Ventures PLC (AQSE: SVEN) (OTCQB: SVTPF), a company investing in and growing exciting brands across the natural, wellness and food-tech category, is pleased to issue a trading update in respect of the financial year ended ("FYE") 30 September 2022 ("FYE 2022"), the audited results of which, are expected to be published in full on, or around, 28 February 2023.
S-Ventures was formed to identify investment opportunities within the natural, wellness, food-tech, organic and vegan snacking sectors within the
The Group FYE 2022 performance
Revenues for the FYE 2022 were approximately
Since 30 September 2022, the impact of ingredient and labour supplies has abated considerably, although the possibility of further disruption remains, and recent trading has not been materially affected. Inflationary and exchange rate pressures continue and we have passed on some price increases across the Group to maintain margins. We continue to monitor our financial and trading performance very closely.
The underlying operating losses before depreciation and acquisition costs for FYE 2022 were approximately
We are delighted to have announced our most recent acquisition of Juvela, the gluten-free and free-from baked goods brand. This acquisition is expected to have a significant positive impact on the shape of our Group, operating profitability and operating cashflow. The acquisition is also the culmination of a busy year in terms of corporate actions, which included the following:
1. In March 2022, the acquisition of Livia, an indulgent plant-based nutrition business
2. In April 2022, the acquisition of Market Rocket, a technology and amazon D2C business
3. In August 2022, the acquisition of Lizza, a German factory and free-from brand
4. In December 2022, the acquisition of Juvela, a gluten-free and free-from bakery and pharma and retail brand
Business segment reporting and highlights
Going forward, given the larger scale of the Group, additional financial information will be presented based on the following three separate sub-group business segments:
i. Bakery: Juvela and Lizza (Sales in FYE 2022 -
ii. Plant-based nutrition: Pulsin, Livia's, Ohso, and Purely (Sales in FYE 2022 -
iii. Technical services: Market Rocket (Sales in FYE 2022 -
The new Bakery segment came into existence with the acquisition of Lizza in August 2022. This business focuses on flax seed based keto products that fit well with our other food brands. Strategically, Lizza gives us an important market presence in the EU as a platform to generate income from overseas. Lizza is currently loss-making and we envisage a turnaround period of 18 months as we reposition its product range and implement group synergies. Subsequent to the FYE 2022, we have acquired Juvela, a profitable company that sells a range of gluten-free products through both the pharma and retail channels in the
The Plant-based nutrition segment includes: Pulsin protein powders, sport nutrition bars, keto products and healthy snack bars; Livia's indulgent free-from treats; Purely plantain crisps; and, Ohso pro-biotic chocolate. All products are free from gluten, palm oil and contain no artificial ingredients. In FYE 2022, this segment faced economic headwinds and several trading challenges. As a result, we have undertaken an internal restructuring exercise, which includes the restructuring of leadership and employees' positions, to enhance cost efficiency and profitability. These efforts are bearing fruit and the turnover for the first quarter of FY23 has been encouraging.
The technical services segment, that includes Market Rocket ("MRL") which provides a range of marketing and support services to third parties as well as the Group, is currently performing above the Group's expectations since its acquisition in April 2022. In October 2022, the Group invested through MRL in a specialist team to enable MRL to provide a complete range of search engine optimization (SEO), public relations (PR) and marketing services which have resulted in both additional sales to existing customers and the introduction of new accounts.
Our Board of Directors ("Board") remains optimistic about the business and financial performance in the financial year ending 30 September 2023 ("FYE 2023") given the current progress in the implementation of our corporate strategic plans.
Our Board and management team continue to look for new acquisition and collaboration opportunities to take advantage of market conditions. However, the Group's priorities are the consolidation of existing brands, integration of new brands, roll-out of new product development, which has been delayed by supply shortages last year, cost saving opportunities and synergistic plans to further enhance profitability and top-line growth of the Group. The Board is also considering a range of financing options to support the future growth and development of the Group.
Our Board and management team remain dedicated to creating improved returns and value for all our stakeholders and to capitalise on the market conditions as we move into FYE 2023 across our Bakery, Plant-based nutrition and Technical services platforms.
For further information, please contact:
Scott Livingston (Chief Executive Officer)
+44 (0) 1932 400 224
Robert Hewitt (Chief Financial Officer)
AQSE Corporate Adviser and Broker:
Andrew Raca - Corporate Finance
+44 (0) 20 3005 5000
IFC Advisory (Financial PR)
+44 (0) 20 3934 6630