Annual General Meeting supports SYNBIOTIC's growth plans with over 99 percent approval

The Annual General Meeting of SYNBIOTIC SE (ISIN DE000A3E5A59 | WKN A3E5A5) has confirmed the strategic growth course of the European industrial hemp and cannabis company group with an overwhelming majority. At the virtual Annual General Meeting on Friday, 20 September 2024, the shareholders unreservedly approved the plans for the current and coming year.

The Annual General Meeting chaired by Oliver Conrad, Chairman of the Board of Directors of SYNBIOTIC, lasted just two hours. The items put to the vote received over 99 percent approval across the board. In addition to Oliver Conrad and Daniel Kruse, CEO of SYNBIOTIC, multi-entrepreneur Frank Otto, a member of SYNBIOTIC's Board of Directors, naturally also attended the Annual General Meeting. SYNBIOTIC had once again decided to hold the Annual General Meeting virtually in order to make it easier for as many shareholders as possible to attend.

Black figures in 2025

The report by CEO Daniel Kruse, who took office at the end of August 2023, shows a clearly discernible turnaround thanks to disciplined cost optimisation, efficient synergy measures and targeted investments. Thanks to reduced costs for personnel and service providers as well as the acquisition of three strategically important companies, Kruse expects to be in the black by 2025: "Since the fourth quarter of 2023 and especially in 2024, we have seen a significant increase in demand in all business areas. These increases in turnover, coupled with cost efficiency, are expected to lead us to profitability as early as 2025."

For the 2024 financial year, SYNBIOTIC is forecasting sales of EUR 16.6 million at Group level, with gross profit of EUR 8.4 million - and rising sales of EUR 26.2 million for 2025. This corresponds to an increase of almost EUR 10 million, i.e. an increase of 57 per cent compared to 2024. For 2026, the Group is forecasting sales revenue of EUR 33.6 million and an increase of 28 per cent.

Share price target 12.50 euros

Macroeconomic influences caused by the coronavirus pandemic and the Russian war of aggression against Ukraine, as well as arbitrary behaviour by the authorities towards hemp and CBD products, have put the economic environment for industrial hemp and cannabis products under extreme pressure. The removal of cannabis from the Narcotics Act, on the other hand, has had an extremely positive effect as expected, with sales figures for medicinal cannabis increasing many times over. However, there are also positive signals from the political arena. The entire hemp industry and of course SYNBIOTIC, thanks to its strategic positioning, will benefit greatly from the planned and now adopted (editor's note) Industrial Hemp Liberalisation Act, or NLG for short.

These are reasons for a good share price outlook, says Daniel Kruse: "The share price is very volatile compared to other stocks. After we had a share price of less than EUR 3 at the end of 2023, it rose to almost EUR 14 at the end of March this year, particularly due to the news surrounding legalisation. The share price has currently levelled off at around EUR 6, which in the opinion of analysts, and of course also in our opinion, represents a significant undervaluation of the share. The price target until mid-2025 is around EUR 12.50 per share." The corresponding analyst reports are available for download on the website www.SYNBIOTIC.com.

New members of the Board of Directors, new seat, new spelling

At the Annual General Meeting of SYNBIOTIC SE, Mr Malte Johannes and Mr Daniel Kruse were elected as new members of the Board of Directors. In addition, the company's registered office was moved from Munich to Düsseldorf. Even if it is only a “cosmetic change”, the spelling of the company has been changed from SynBiotic to SYNBIOTIC in capital letters.

Diversity advantage

As a European industrial hemp and cannabis group, SYNBIOTIC has a decisive unique selling point: no market competitor offers investors a comparably high degree of diversification in the industrial hemp and cannabis sector. Through its investments, SYNBIOTIC covers the entire value chain of the industrial hemp and cannabis sector. The successful continuation of the buy and build strategy will further extend this advantage.

Publisher
SYNBIOTIC SE
Daniel Kruse
Managing Director
Münsterstraße 336
40470 Düsseldorf
Germany

Media contact
Rüdiger Tillmann
SYNBIOTIC
Public Relations Manager
E-mail ruediger.tillmann@synbiotic.com
Mobile +49 170 9651451
c/o JOLE.group

About SYNBIOTIC
SYNBIOTIC is a listed group of companies in the hemp and cannabis sector and pursues a buy and build investment strategy focussed on the EU. The Group covers the entire value chain from cultivation to production and retail - from the field to the shelf. The core businesses of the vertically integrated subsidiaries are research and development, production and the commercialisation of hemp, CBD and cannabis products. SYNBIOTIC has a clear pan-European strategy to further expand along the value chains of its business areas - hemp and CBD, medical cannabis and consumer cannabis.