CEWE Stiftung & Co. KGaA — Earnings Release 2003

Aug 26, 2003

News Details

Ad-hoc | 26 August 2003 08:00

CeWe Color Holding AG english

CeWe Color Holding AG announces its audited business figures for the II. quarter Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– CeWe Color Holding AG announces its audited business figures for the II. quarter of 2003: Oldenburg, August 26, 2002 – CeWe Color Holding AG (SDAX; ISDN DE 0005403901) – the largest independent European photofinisher – has announced that, thanks to stringent cost management, the company was able to achieve profits after tax of Euro 6 million and cash flow of Euro 15.2 million in the second quarter of 2003, the second-best result of all the second quarter of the last 10 years achieved. The mid-year decline in sales amounting to Euro 6.5 million, to Euro 192.5 million, (mid-year 2002: Euro 199.0 million) was the result of a drop in the photofinishing sector of Euro 1.6 million and in the wholesale and retail sector of Euro 4.9 million. The core area of business of the group, photofinishing, with a growth in the volume of prints of 1.9 %, to 1,544 million prints (mid- year 2002: 1,517 million prints), was above market average and generated gains in market shares. CeWe Color was able to increase the number of digital photos developed and sold in the first six months of 2003 from 9.6 million to 45.3 million, representing a growth rate of 369 %. During the first six months of 2003 alone, CeWe Color was able to generate sales of 18.1 million colour prints through the Internet, representing a growth rate of 325 % in comparison to the same period of the previous year. A total of 27.1 million digital photos were ordered in the 38,000 retail stores supplied daily by CeWe Color (+ 403 % in comparison to the first six months of 2002). In the second quarter of 2003, CeWe Color generated profits before tax (EBT) of Euro 8.1 million, profits after tax of Euro 6.0 million and Cash Flow amounting to Euro 15.2 million, which, in respect of quarterly sales amounting to Euro 107.1 million, is equivalent to sales yields of 7.6 % (before tax), 5.6 % (after tax) and cash flow amounting to 14.2 % of revenue. These figures are equivalent to or exceed those of 2000 and 2001. It was only 2002 that could not be matched. Dr. Rolf Hollander, Chairman of the Board of Management of CeWe Color Holding AG, points out that it was to a large extent possible to offset a decline in sales (in the second quarter) as a result of the market situation by means of lowering costs of materials (- 11.9 %) and personnel costs (- 3.2 %). An enhancement of efficiency to the sum of Euro 6.8 million was accompanied by a decline in other operating income in the area of exchange-rate differences (Euro 1.9 million) and an increase in other operating expenses for technical installations for digital production (Euro 1.1 million) during the first six months of 2003. The Board of Management of CeWe Color Holding AG feels that it may not be possible to offset the decline in sales as a result of a weak tourism sector in the second quarter by means of additional sales in summer and autumn. Thus, to be on the safe side, targets for the business year of 2003 are being adjusted accordingly: – Development in sales: +/- 0 to – 3 % – Difference in profits (EBT)in comparison to the previous year – Euro 3 million Since sales and income generated by digital products are developing so promisingly, CeWe Color shareholders can still reckon with above-average dividends. Should you have any queries, please contact: CeWe Color Holding AG, Hella Meyer Tel.: 0441/404 – 400 or 0171/34 50 530, Fax: 0441/404 – 421 Email: hella.meyer@cewecolor.de, Internet: http://www.cewecolor.de end of ad-hoc-announcement (c)DGAP 26.08.2003 ——————————————————————————– WKN: 540390; ISIN: DE0005403901; Index: SDAX Listed: Geregelter Markt in Berlin-Bremen und Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, München und Stuttgart 260800 Aug 03