FBA: Sports Supplements, Cosmetics, Teas

Sales TTM12: 1.636.129
Profit TTM12: 503.000€
Averaged EBITDA 3yrs: 680.000€

Asking Price: Pre-Market! Investors are approached currently.

Founded: 2014
Registered Brand | 24 Active ASINs

Brand, Marketplaces, Company

The founders of this own brand have built a leading brand house for sports supplements, teas and cosmetics on the AMZ marketplaces in Southern Europe since 2014. Focus is on products for weight loss, detox and natural cosmetics. Main sales drivers are Southern European marketplaces of AMZ. This company currently distributes 24 EANs. The main brand is registered in the AMZ Brand Registry and with the EUIPO as well as in the USA. Other sub-brands are currently in the registration process. The sale of this brand and all related assets is a share deal of a German GmbH.
This company is successful as a sports brand for consumer goods. The top three sellers of this company reach more than 2,000, 3,000 and 4,000 positive reviews on PAN-EU marketplaces.
Currently, there are goods in the FBA warehouse for a purchase value between about 50k€ to about 60k€, which have a resale value of more than 1.8 million euros.

Products

The product listings are placed in the respective marketplaces with professional photos and texts in local languages. Also because of these professional product descriptions, the product listings achieve a conversion rate of 25%. The product descriptions in local languages combined with the quality of the products result in an average return rate of <2%. The brand has an extremely high recognition value: the logo clearly stands out from competitors in the category overviews. The products are absolute premium products Made in EU. The supplements are not pressed tablets but capsules, which is a sign of quality. All products are vegan. The products are marketable to all countries. Thus, the entire range has successfully passed all tests and certifications of national health authorities. The products also always pass all surveillance audits and recertifications. Marketing and social media Through surveys, the founders regularly collect data on user experiences. The result of several surveys was that customers value the herbal and natural ingredients in the products. According to the surveys, new customers become aware of the brand through the consistently positive reviews as well as IG posts.
According to the surveys, the social media activities in particular reinforce the positive body image of this brand’s customers and motivate them to buy. In addition, users are pleased that with the consumption of the supplements no side effects such as digestive problems or trace element deficiencies occur, which, however, are often complained about in comparison to less valuable products. The brand has a strong presence with several national social media accounts in Spain, Italy, France, UK, Netherlands, and Poland, addressing customers in their respective languages. The social media accounts are managed by the in-house team. In total, the social media accounts reach more than 130,000 subscribers. The brand has built a large network of influencers who regularly publish posts about products and brands. This brand also has a stable fan base because of this. This fan base is reflected in the rate of returning customers of 23%. Suppliers in EU The company has stable relationships with 5 suppliers.
The goods are manufactured exclusively in the European Union. Delivery times are approximately 5 weeks. The cash conversion cycle is already well established due to long payment terms and reverse factoring. All suppliers are long-standing premium producers and established in the market. The supplier relationships are stable through framework agreements with associated price lists. All suppliers can still deliver much larger quantities to this brand or offer additional products. So far, the founders have focused on the highest-margin products in order to preserve their capital situation. For a new owner, significant purchasing synergies can be leveraged through larger purchase quantities or product extensions. Potentials The potential of this brand for an investor is the further development of the brand into a comprehensive sports brand. In addition, the tea and natural cosmetics product segments still have significant potential that an investor can leverage.

Corona effect on sales:

After strong growth years in sales and profitability between 2014 and 2019, there has been a negative Corona effect on GmbH sales in 2020. With the hard lockdowns in the key target markets of France, Spain and Italy, the sports habits of many customers have changed: Gyms were closed and outdoor sports were so limited due to the restricted freedom of movement in these countries that even regular athletes stopped training and gave up sports supplements. Purchasing behavior for the functional tea and cosmetics product lines also declined during the lockdowns. However, despite declining sales, this lean company was able to maintain its profitability rate. With the end of the current lockdowns, sales are expected to recover to 2018 and 2019 levels and have the potential to increase further for the following reasons: According to current estimates, EU citizens have gained nearly 4kg in body weight during the Corona lockdowns. Due to these widespread weight gains, increased demand for supplements for weight loss as well as body strengthening is anticipated with the end of the lockdowns in Europe. As a result, sales are expected to recover and potentially increase.

Organization

In addition to the two founders, the GmbH currently employs two part-time employees and three mini-jobbers. The employees manage the day-to-day business largely independently. The after-sales process is automated and binds buyers to the brands through e-books, among other things, which customers receive free of charge. With the e-books as well as with individual advice, this brand accompanies customers during their weight loss and body strengthening journey, which often lasts several months. This brand attracts new customers through regular promotions that are carefully designed. The owners rarely have to be operational, and the majority of their work is on formulas as well as launches of new products or expansion into new markets. For example, the founders will soon be launching new product lines in areas of their core expertise such as Detox, Keto as well as Testo-Booster. Other product groups are also in the pipeline. The expansion to other AMZ marketplaces (USA) and a stronger focus on their own store are also among the upcoming plans of the founders, which an investor can also continue in temporary cooperation (3-6 months) with the founders. The GmbH has a stable capital structure. Loans exist in the GmbH in the amount of approximately 600k€, which are mainly used for the procurement of goods. Among the loans are development loans from the kfw (quickly redeemable) as well as from the house banks. The founders have so far undertaken further growth in a measured manner. The careful handling of capital leads to a low debt ratio compared to competitors. In addition, the founders are currently preparing to re-enter the B2B business. The store under its own domain runs via Shopify and, with <1% share of sales, is still considerably expandable. There are 7,000 email addresses subscribed to the brand’s newsletter. The founders are aiming to sell their company to dedicate themselves to other projects.
Figures, data, facts:
Turnover in the last 12 months: 1.636.129
Profit in the last 12 months: 503.000€
Sales 2021 Jan-Aug: 1.137.941€
Profit 2021 Jan-Aug: 353.879€
Sales 2020: 2.188.708€
Profit 2020: 788.178€
Sales 2019: 2.488.195€
Profit 2019: 720.778€
Sales 2018: 1.378.159€
Profit 2018: 326.192€
Turnover 2017: 153.771€
Profit 2017: 32.278€

If you are interested in this private label: please contact jan@luckyflippers

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