• Social Chain AG publishes quarterly report I/2022
• Q1 revenue: EUR 124.8m, EBITDA: EUR 23.9m (before adjustments)
• Organic growth of 14.6% excluding DS Group (TSC AG revenues increased by EUR 8.9m from EUR 60.7m in the previous year to EUR 69.6m)
• KoRo disposal of shares leads to significant earnings boost
• Focus on integration of DS Group
Berlin, 25 May 2022. Social Chain AG has published its quarterly report for the period January to March 2022. „We are pleased to have increased our revenue by 105% compared to the previous year, with a clear double-digit positive EBITDA of 23.9 million Euro,“ reports Andreas Schneider, the designated new CFO of Social Chain AG. „The strong increase in revenue is of course also due to the acquisition of DS Group,“ says Andreas Schneider. „In addition, we are recording a significant increase in revenue of almost 100% in the agency segment compared to the first quarter of 2021.“
Challenging world situation affects consumer behavior
“It is clear that we are currently operating in a challenging market environment. In the wake of the war in Ukraine and the Corona pandemic, many people are restricting their consumer spending on fast moving consumer goods. Therefore, we have to accept a slight decline in revenues in e-commerce and retail compared to the previous year,” says Andreas Schneider. The reluctance to buy in e-commerce (non-food) was much less noticeable at Social Chain AG than at many of its market competitors.
Synergy potential and restructuring costs through merger with DS Group
After the merger with DS Group, the post-merger integration is one of the most important tasks. “The restructuring has resulted in integration costs for Social Chain AG, which impacted the quarterly result as a one-off effect,” Andreas Schneider explains. “We are pushing ahead with the integration at full speed and will only be able to realize the synergy potential gradually in the coming quarters. The potential is already being utilized in the Brand Chain divisions and in the core brands such as LANDMANN and Glow,” adds Wanja S. Oberhof, CEO of Social Chain AG.
Disposal of stake in KoRo Handels GmbH has clearly positive effect on quarterly EBITDA
The adjusted EBITDA of Social Chain AG generated in the first quarter of 2022 was clearly positive in the double-digit range at 23.9 million Euros, in particular due to the sale of shares in KoRo Handels GmbH. As already communicated by the company in mid-March, several internationally renowned institutional financial investors as well as other angel investors invested a significant double-digit million amount in KoRo. “The shareholding of Social Chain AG has been reduced by the transaction, so that Social Chain AG no longer exercises a controlling influence on the company,” reports Wanja S. Oberhof and continues: “The strategic partnership between Social Chain AG and food tech investors creates numerous further opportunities for the Social Commerce brands of our group.”
Oberhof thanks the finance team for the quarterly reporting: “The current figures show the entrepreneurial dynamics of the entire Social Chain AG. We are on a very good course towards solid profitability,” says Wanja S. Oberhof.
Press Contact:
Sanja Stankovic
Jana Walker
+49 40 675 73 2946
press@socialchain.com
www.socialchain.com
The Social Chain AG
Gormannstraße 22
10119 Berlin
Germany
About The Social Chain AG: Social Commerce at a Global Scale
We are Social Commerce pioneers and social media is our marketplace. As a house of entrepreneurs, we are reshaping the world of brands and commerce, turning wishes and ideas into products with our combined sales power. We understand how to develop our own brands and products into direct-to-consumer brands with the power of social media and market them to specific target groups. We offer our entrepreneurs and trade partners an all-round carefree package in-house: from our own product development, legal assessment, production, quality assurance, marketing and communication to logistics and everything else that brands and products need to become big and successful.
The Social Chain AG delivers products from the 10,000-item portfolio covering food, home & living, and beauty & fitness, as well as successful brands such as LANDMANN, Germany's oldest barbecue manufacturer, and KoRo, directly to customers' homes.
The best-known heads of The Social Chain AG are Ralf Dümmel and Dr. Georg Kofler, both investors in the VOX start-up show "Die Höhle der Löwen". In addition to Ralf Dümmel as Chief Product Officer, the company is managed by Andreas Schneider as Chief Financial Officer and Wanja S. Oberhof as Chief Executive Officer.
The company, which has over 1,300 employees, has its headquarters in Berlin and other locations in New York, Manchester, Stapelfeld near Hamburg, London, Gallin and Los Angeles. The shares of Social Chain AG (WKN: A1YC99) are listed in the Prime Standard of the Frankfurt Stock Exchange.
www.socialchain.com
The content of this press release is for information purposes only and does not constitute investment advice or other recommendations pursuant to the German Securities Trading Act by The Social Chain AG or its affiliated companies. The information provided cannot replace investment advice. The information contained in this press release is not to be construed as an assurance of possible price developments and should not be construed as a request to enter into a transaction. The information contained herein does not constitute an offer to sell or the solicitation of an offer to sell securities or rights, or a solicitation to trade in securities or rights. Accordingly, The Social Chain AG and its affiliates make no representations or commitments as to the accuracy, completeness or correctness of the information or opinions contained herein. We assume no liability for direct or indirect damages caused by and/or in connection with the distribution and/or use of this document. The statements correspond to the status at the time of the preparation of this document. They may become obsolete due to future developments without the document being changed.
