Structural Decline, Governance Failures, and Shareholder Risk
- Falling Demand: Active customers and orders have steadily declined since 2022; U.S. ready-to-eat sales temporarily offset losses, but Q1 2025 shows orders down ~18–19%, with price hikes no longer sustaining margins.
- Deepening Losses: Rising costs in procurement, logistics, and marketing drove a €144M 2024 loss and a €127M Q1 2025 operating loss, prompting U.S. facility closures and >1,500 layoffs.
- Governance & CEO Conflicts: Co-CEOs Richter and Griesel distracted by personal ventures and high-frequency share pledging (~6.6M shares, €108M initial loan); Supervisory Board oversight is weak, raising severe shareholder risk.
- Compliance & ESG Issues: Multiple investigations (child labor, illegal immigration), ESG controversies, and fines for aggressive marketing damage reputation and operational credibility.
- Overextended Growth: Rapid acquisitions and expansion into pet food created a sprawling, unintegrated structure, reducing efficiency and threatening sustainability.

