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CEWE Stiftung & Co. KGaA — Earnings Release 2012
Mar 27, 2013
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Earnings Release
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Corporate | 27 March 2013 07:00
CEWE COLOR Holding AG: Dividend to rise to 1.45 euros
CEWE COLOR Holding AG / Key word(s): Final Results/Dividend
27.03.2013 / 07:00
CEWE COLOR: Dividend to rise to 1.45 euros
– Turnover of more than half a billion euros for the first time ever in 2012
– After-tax earnings rise to 18.8 million euros
– Core business ROCE continues to increase to 23.1%
– CEWE PHOTO BOOK brand awareness rises to 51%
– Sales boosted in new business sector of online printing
Oldenburg, 27 March 2013. CEWE COLOR Holding AG (SDAX, ISIN: DE0005403901) intends to raise its dividend for the 2012 business year to 1.45 euros. The company presented its business figures for 2012 at an annual report and analysts’ press conference held in Frankfurt today. With turnover at 503.3 million euros, the half-billion euro mark was exceeded for the first time in the history of the company (2011: 469.0 million euros). EBIT amounted to 28.9 million euros (target for 2012: 27 to 33 million euros) after 30.1 million euros in the previous year. On the basis of the annual net profit in the amount of 18.8 million euros (2011: 18.6 million euros), the Board of Management and the Supervisory Board will propose to the Annual General Meeting, to be held in Oldenburg on 5 June, that the dividend paid out be increased again over that of the previous year, to 1.45 euros per share (previous year 1.40 euros). The return on capital employed in the company’s core business, comprising photofinishing and photo retailing, continued to rise in 2012: at 23.1%, the ROCE was again increased (2011: 22.3%). ‘Our strong core business makes it possible for us to invest in our new business segment of online printing, which contributes to the growth in the Group and is to contribute around 60 million euros to consolidated turnover this year already. By 2016, online printing is to have reached turnover in the amount of 100 million euros,’ says Dr. Rolf Hollander, Chairman of the Board of Management of CEWE COLOR Holding AG.
Core business ROCE reaches a new record
The core business of the company (photofinishing and photo retailing business), delivered EBIT in the amount of 33.7 million euros in 2012, which exceeded the EBIT target corridor for the Group as a whole in the amount of 27 to 33 million euros. The trend ‘from mass to class’ – i.e. the increasing demand for added value photo products such as the CEWE PHOTO BOOK, photo calendars, photo greeting cards and wall decorations instead of individual photo prints in the classical image formats, which has persisted for many years now – continued through 2012 as well. This change in the product mix improved the return on capital invested in the core business of the company to a new record high: while the ROCE was at 22.3% in 2011, it was increased again in the business years ended, to 23.1%. ‘Success in our core business is the foundation for investing considerably in the growth of the new business sector of ‘online printing’ while at the same time increasing earnings per share,’ Dr. Hollander says in explanation of the Group’s corporate strategy in the previous business year. Due to the acquisition of the Saxoprint Group in the business segment of online printing, the return on capital employed for the Group as a whole was 15.0% (2011 ROCE: 19.8%).
90% of photofinishing earnings generated in a strong fourth quarter
The third quarter, with photos from the summer holidays, used to be the main quarter by far, but for years now the seasonal peak has been shifting more and more to the fourth quarter, in which demand for the CEWE PHOTO BOOK and photo calendars, photo greeting cards and wall decorations is high, particularly for use as Christmas gifts. Income from the main business segment of photofinishing again increased accordingly in the fourth quarter. EBIT in the photofinishing segment rose by 16.2% to 28.2 million euros in Q4, which meant that the fourth quarter generated around 90% of photofinishing earnings in 2012. This seasonal shift is expected to continue in 2013.
CEWE PHOTO BOOK brand awareness rises to 51%
CEWE COLOR sold a total of 5.6 million CEWE PHOTO BOOKS in the previous business year (an increase of 8.4% over the preceding year), of which 38% of the books were sold in the fourth quarter (an increase of 10.3% over the previous year). The CEWE PHOTO BOOK was thus the fast seller in Christmas business in 2012 as well. Since customers are increasingly choosing superior products, sales of the books increased by as much as 11% in 2012. This success is based on the high level of brand awareness of the CEWE PHOTO BOOK. In Germany, aided awareness of the CEWE PHOTO BOOK brand rose to 51%, after 44% in the previous year (GfK).
Online printing grows more than anticipated
The company invested in online printing in 2012: due to wide-scale perimeter advertising at football games and television advertising, as well as costs incurred for the integration of acquired company Saxoprint in 2012, EBIT for this business segment was -4.8 million euros. This initial investment saw turnover in this business segment of the future jumping to 43 million euros (2011: 1.4 million euros). The turnover target of EUR 40 million was thus exceeded by 8%. ‘Our strategy is bearing fruit – the Saxoprint acquisition is paying off. In 2012, online printing progressed to become a veritable new business segment with good prospects for the future of CEWE COLOR,’ says Hollander.
Outlook: More investments in strong-growth online printing
As in 2012, the Board of Management expects CEWE PHOTO BOOKS, photo calendars, greeting cards and wall decorations to contribute to the same high level of turnover and income in 2013, while online printing is to contribute more growth impulses in the short term and also additional income in the medium term. In 2016 at the latest, online printing is to generate more than EUR 100 million in turnover. For this reason the Board of Management intends to invest some of the income generated with photofinishing into online printing growth. ‘With the huge step taken in online printing, 2012 was an important year for the development of our company. The high-yield, stable photofinishing segment in particular will accelerate online printing growth with some of its income in 2013 as well,’ Hollander explains how the business segments correlate. Online printing is to increase to generate turnover amounting to EUR 60 million (+40%), so that Group sales will increase by 1 to 5%, to EUR 510 to 530 million. Due to investments in online printing, EBIT in 2013 is also to be in the range of EUR 27 to 33 million, and earnings per share are to be in the range of EUR 2.44 and 3.06 per share.
Business segments
| CEWE COLOR | Unit | Q4-2011 | Q4-2012 | 2011 | 2012 |
| (1) Photofinishing (PF) | |||||
| Turnover | in EUR m. | 129.6 | 132.0 | 355.5 | 355.4 |
| EBIT | in EUR m. | 24.8 | 28.8 | 30.5 | 32.0 |
| EBIT margin | % | 19.1% | 21.8% | 8.6% | 9.0% |
| (2) Retailing (R) | |||||
| Turnover | in EUR m. | 30.9 | 30.5 | 112.2 | 105.0 |
| EBIT | in EUR m. | 1.6 | 1.5 | 2.4 | 1.7 |
| EBIT margin | % | 5.2% | 5.0% | 2.2% | 1.6% |
| Core business (PF + R) | |||||
| Turnover | in EUR m. | 160.5 | 162.5 | 467.6 | 460.4 |
| EBIT | in EUR m. | 26.4 | 30.3 | 33.0 | 33.7 |
| EBIT margin | % | 16.5% | 18.7% | 7.0% | 7.3% |
| ROCE | % | 22,3% | 23,1% | ||
| (3) Online printing | |||||
| Turnover | in EUR m. | 0.5 | 14.4 | 1.4 | 43.0 |
| EBIT | in EUR m. | -0.7 | -1.2 | -2.8 | -4.8 |
| EBIT margin | % | -141% | -8.2% | -205% | -11.1% |
| CEWE COLOR Group | |||||
| Turnover | in EUR m. | 161.0 | 176.9 | 469.0 | 503.3 |
| EBIT | in EUR m. | 25.8 | 29.2 | 30.1 | 28.9 |
| EBIT margin | % | 16.0% | 16.5% | 6.4% | 5.7% |
| ROCE | % | 19,8% | 15,0% | ||
| 2012 targets | Turnover | 500 – 525 | |||
| EBIT | 27 – 33 | ||||
| EBIT margin | 5.1% – 6.6% |
Information
(1) Photofinishing: Production and sale of photo products such as the CEWE PHOTO BOOK, photo greeting cards, calendars, wall decorations and individual (analogue and digital) photos as well as other photo products
(2) Retailing: Trading in CEWE’s own retail stores in Norway, Sweden, Poland, Czech Republic and Slovakia with photo hardware such as cameras and lenses
Core business: Aggregate of photofinishing and retailing
(3) Online printing: Production and sale of commercial print products in the online printing portals at CEWE-PRINT.de, Saxoprint.de and Viaprinto.de
2012 in a comparison with the previous year
| CEWE COLOR Group | Unit | 2011 | 2012 target | 2012 actual | 2013 target |
| Digital prints | in billion units | 2.25 | 2.13 – 2.18 | 2.30 | 2.10 – 2.15 |
| Prints from films | in billion units | 0.25 | 0.16 – 0.18 | 0.16 | 0.10 – 0.11 |
| Total prints | in billion units | 2.50 | 2.29 – 2.36 | 2.46 | 2.20 – 2.26 |
| CEWE PHOTO BOOKS | in m. units | 5.1 | 5.7 – 5.9 | 5.6 | 5.8 – 6.0 |
| Turnover | in EUR m. | 469.0 | 500 – 525 | 503.3 | 510 – 530 |
| EBIT | in EUR m. | 30.1 | 27 – 33 | 28.9 | 27 – 33 |
| EBIT margin | % | 6.4% | 5.1% – 6.6% | 5.7% | 5.1% – 6.5% |
| EBT | in EUR m. | 29.2 | 25 – 31 | 26.7 | 25 – 31 |
| Earnings after tax | in EUR m. | 18.6 | 16 – 20 | 18.8 | 16 – 20 |
| Earnings per share | in euros/share | 2.84 | 2.44 – 3.06 | 2.87 | 2.44 – 3.06 |
Fourth quarter in 2012
| CEWE COLOR Group | Unit | Q4-2011 | Q4-2012 | Diff. % | Diff. abs. |
| Digital prints | in billion units | 0.71 | 0.75 | +4.8% | +0.04 |
| Prints from films | in billion units | 0.05 | 0.03 | -36.5% | -0.02 |
| Total prints | in billion units | 0.76 | 0.78 | +2.2% | +0.02 |
| CEWE PHOTO BOOKS | in m. units | 1.9 | 2.1 | +10.3% | +0.2 |
| Turnover | in EUR m. | 161.0 | 176.9 | +9.9% | +15.9 |
| EBIT | in EUR m. | 25.8 | 29.2 | +13.3% | +3.4 |
| EBIT margin | % | 16.0% | 16.5% | +0.5% pts | |
| EBT | in EUR m. | 25.6 | 28.7 | +12.4% | +3.2 |
| Earnings after tax | in EUR m. | 18.1 | 22.0 | +21.4% | +3.9 |
Percentage deviations have all been calculated at the exact values.
Should you have any queries, please contact:
CEWE COLOR Holding AG, Axel Weber (Investor Relations)
Tel.: 0441 / 404 – 2288, Fax: 0441 / 404 – 421, e-mail: [email protected]
Internet: www.cewecolor.de , www.cewe.de , www.cewe-fotobuch.de , www.cewe-print.de
www.viaprinto.de , www.saxoprint.de
Now available in the Apple App Store: The CEWE Investor Relations app for your iPad(R), including annual reports and quarterly reports as well as sustainability reports.
Financial schedule:
13.05.2013: Publication of the interim report for Q1-2013
05.06.2013: 2013 Annual General Meeting, Weser-Ems-Halle, Oldenburg
14.08.2013: Publication of the mid-year financial report for Q2-2013
07.11.2013: Publication of the interim report for Q3-2013
About CEWE COLOR: The online printing and photo service company CEWE COLOR, with 13 highly-technical production operations and a staff of around 3,300 employees in 24 European countries. In 2012 CEWE COLOR delivered around 2.5 billion prints, 5.6 million CEWE PHOTO BOOKS and photo gift articles to more than 34,000 retail partners to generate consolidated turnover of 503.3 million euros. CEWE COLOR is a ‘first mover’ in the introduction of new digital technologies and products. In the new business segment of online printing, printed material for advertising is marketed through the sales platforms CEWE-PRINT, saxoprint and viaprinto. CEWE COLOR celebrated its 50th company anniversary in 2011. In 1961 CEWE COLOR was founded by Senator h. c. Heinz Neumüller. The company went public under the leadership of Hubert Rothärmel in 1993. CEWE COLOR Holding AG is listed on the SDAX.
End of Corporate News
27.03.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
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| Language: | English |
| Company: | CEWE COLOR Holding AG |
| Meerweg 30-32 | |
| 26133 Oldenburg | |
| Germany | |
| Phone: | +49 (0)441 40 4-1 |
| Fax: | +49 (0)441 40 4-42 1 |
| E-mail: | [email protected] |
| Internet: | www.cewecolor.de |
| ISIN: | DE0005403901 |
| WKN: | 540390 |
| Indices: | SDAX |
| Listed: | Regulierter Markt in Berlin, Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, Hannover, München, Stuttgart |
| End of News | DGAP News-Service |
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