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CEWE Stiftung & Co. KGaA — Earnings Release 2014
Nov 13, 2014
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Earnings Release
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Corporate | 13 November 2014 07:00
CEWE expects another strong fourth quarter
CEWE Stiftung & Co. KGaA / Key word(s): 9-month figures
13.11.2014 / 07:00
CEWE expects another strong fourth quarter
– Q3 2014 within target corridor
– Online printing grows faster than planned in the first nine months: increase of 20.1%
– CEWE PHOTO BOOK clear market leader
– Well prepared for the seasonal peak in the fourth quarter
– Biggest demand for CEWE brand products in the Christmas quarter
Oldenburg, 13 November 2014. CEWE Stiftung & Co. KGaA (SDAX, ISIN: DE 0005403901) confirms its targets after the first nine months of 2014 and expects to improve income over the target figures for 2013 by an average of around 3 million euros. “The third quarter is within the target corridor. Now we’re going to accelerate our momentum and reach our sales and income targets in the fourth quarter. We are well prepared,” says Dr. Rolf Hollander, Chairman of the Board of Management of CEWE Stiftung & Co. KGaA. In spite of the ongoing seasonal shift into the fourth quarter, CEWE kept its EBIT in the first nine months of 2014 constant in comparison to the previous year, at – 4.1 million euros. The fourth quarter has seen considerable increases in sales and earnings for years now, and only needs to increase earnings by another 0.6 million over those of the previous year in order to reach the annual EBIT target corridor of 30 to 36 million euros. With its brands CEWE PHOTO BOOK, CEWE CALENDAR, CEWE CARDS (Christmas cards), CEWE WALL PICTURES and other photo gifts, CEWE is excellently positioned for Christmas business in the vital fourth quarter. For many years now, consumers have been increasingly willing to give CEWE photo products as Christmas gifts. Customers can experience photo products at 30,000 retail partners supplied by CEWE throughout Europe and can order them from these retailers or online.
Fourth quarter to deliver a renewed increase in contribution to earnings
In spite of the ongoing seasonal shift to the fourth quarter, in the first nine months of the current business year, and with sales amounting to 329 million euros (Q1-3 2013: 345 million euros), CEWE has maintained its EBIT at a consistent level of -4.1 million euros in comparison to the same period of the previous year, which was still negatively affected by restructuring expenses (Q 1-3 2013: -4.1 million euros).
In the fourth, by far the most important quarter, CEWE expects its EBIT to be in the range of 34 to 40 million euros. In the Christmas quarter of 2013, EBIT had already amounted to 33.5 million euros. It will only take an increase of 0.6 million euros in the fourth quarter of 2014 against that of the previous year in order to achieve the EBIT target range of 30 to 36 million euros. In the past four years, fourth-quarter growth for each year amounted to between 3.4 million euros and 6.1 million euros.
Business segments all on track: online printing grows more than anticipated
Consistent growth with the European market leader CEWE PHOTO BOOK (Q1-3 2014: + 3.6 % to 3.7 million books) enabled CEWE to increase its photofinishing turnover slightly in spite of an ongoing seasonal shift to the Christmas quarter, by 1.3 % to 230 million euros (Q 1-3 2013: 227 million euros) and achieve a balanced EBIT result at the same level as that of the previous year. At the same time, the company actively reduced its turnover from wholesale business in the retail segment according to plan. Since wholesale business had only generated minimal margins in previous years, turnover was markedly reduced from 76.5 million euros to 49 million euros, but EBIT, at -1.5 million euros (Q 1-3 2013: -1.2 million euros), amounted to almost the same as in the previous year. At the same time, the strategic growth sector of online printing grew stronger than expected in the first nine months of 2014, increasing by 20.1 % to 50 million euros (Q1-3 2013: 41.6 million euros) and is likely to exceed it annual turnover target of 70 million euros (+17 %). In parallel to the growth in turnover, online printing reduced its initial losses on an EBIT level from -3.2 million euros to -2.6 million euros. The EBIT margin rose from -7.8 % to -5.2 %.
CEWE business segments all clearly focussed
“CEWE is clearly focussed on value-oriented growth, and each business division in the company makes an important contribution,” Dr. Hollander points out. CEWE is continuing to develop its brand-name added-value products in the business segment of photofinishing, remaining on the path of success of previous years by enhancing profitability. In retailing CEWE is focussing on its core function, thus increasing its value proposition by promoting photofinishing. With online printing a driving growth, CEWE is consistently expanding its customer base in a dynamic market, making enormous progress in internationalisation, and enhancing capacity utilisation in its efficient production. CEWE expects to generate turnover of more than 100 million euros as early as in 2016, so that online printing will ultimately also put economies of scale to good effect, just like photofinishing is already doing today. “With our strategic focus on brand-name added-value products, the growth sector of online printing, the most modern and efficient production lines in Europe and a very sound capital ratio of more than 50 %, we are right on track to make our company even more attractive for customers and shareholders,” says Dr. Hollander.
Earnings targets for the full year of 2014 confirmed
EBIT for the full year of 2014 is to be in the range of 30 million to 36 million euros, and EBT is to amount to 28 million to 34 million euros. After-tax earnings are to be in the range of 19 million to 23 million euros, and earnings per share are to reach 2.84 to 3.45 euros (2013: 3.29 euros), enabling an increase in dividends for the sixth consecutive year.
| CEWE business segments [EUR million] |
Q1-3 2013 | Q1-3 2014 | Q3 2013 | Q3 2014 |
| (1) Photofinishing (PF) | ||||
| Turnover | 227.0 | 230.0 | 85.3 | 89.4 |
| EBIT | 0.4 | 0.0 | 7.8 | 4.2 |
| EBIT margin [%] | 0.2% | 0.0% | 9.1% | 4.7% |
| (2) Retailing (R) | ||||
| Turnover | 76.5 | 49.0 | 24.3 | 16.3 |
| EBIT | -1.2 | -1.5 | -0.3 | -0.4 |
| EBIT margin [%] | -1.6% | -3.0% | -1.2% | -2.4% |
| Core business (PF + R) | ||||
| Turnover | 303.4 | 279.0 | 109.6 | 105.7 |
| EBIT | -0.8 | -1.5 | 7.5 | 3.9 |
| EBIT margin [%] | -0.3% | -0.5% | 6.8% | 3.6% |
| (3) Online printing | ||||
| Turnover | 41.6 | 50.0 | 14.4 | 16.1 |
| EBIT | -3.2 | -2.6 | -1.3 | -0.7 |
| EBIT margin [%] | -7.8% | -5.2% | -9.0% | -4.2% |
| CEWE Group [EUR million] | Q1-3 2013 | Q1-3 2014 | Q3 2013 | Q3 2014 |
| Turnover | 345.0 | 329.0 | 124.0 | 121.8 |
| EBIT | -4.1 | -4.1 | 6.2 | 3.2 |
| EBIT margin [%] | -1.2% | -1.2% | 5.0% | 2.6% |
| ROCE [%] | 13.2% | 15.4% | — | — |
Information
(1) Photofinishing: Production and sale of photo products such as CEWE PHOTO BOOKS, CEWE CARDS, CEWE CALENDARS, CEWE WALL PICTURES and individual (analogue and digital) photos as well as other photo products.
(2) Retailing: Trade with photo hardware such as cameras and lenses in CEWE’s own retail stores in Norway, Sweden, Poland, the Czech Republic and Slovakia.
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 and Viaprinto, and their international portals
Percentage deviations have all been calculated at the exact values.
Should you have any queries, please contact:
CEWE Stiftung & Co. KGaA, Axel Weber (Investor Relations)
Tel.: 0441 / 404 – 2288, Fax: 0441 / 404 – 421, Email: [email protected]
Internet: www.cewe.de , www.cewe-fotobuch.de , www.cewe-print.de , www.viaprinto.de , www.saxoprint.de
Available in app stores: The CEWE Investor Relations app for your iPad(R) or Android tablet, including annual reports and quarterly reports as well as sustainability reports.
Financial schedule:
13 November 2014 Publication of the Q3 2014 interim report
13 November 2014 Analysts’ telephone conference on Q3
24 November 2014 German Equity Forum, Frankfurt
About CEWE : The photo and online print service company CEWE, with 11 highly-technical production operations and a staff of around 3,200 employees in 24 European countries, is both market and technological leader. In 2013 CEWE delivered around 2.37 billion prints, 5.8 million copies of the CEWE PHOTO BOOK and photo gift articles to around 30,000 retail stores, to generate consolidated turnover of 528.6 million euros. CEWE is continuously generating new impulses in the photographic industry with innovations for people who enjoy taking photos. In the new business segment of online printing, printed material for advertising is marketed through the sales platforms CEWE-PRINT.de, Saxoprint und Viaprinto. In 1961 CEWE was founded by Senator h. c. Heinz Neumüller. The company went public under the leadership of Hubert Rothärmel in 1993. CEWE Stiftung & Co. KGaA is listed on the SDAX.
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| Language: | English |
| Company: | CEWE Stiftung & Co. KGaA |
| 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.cewe.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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| 296808 13.11.2014 |