DGAP-News: CEWE Stiftung & Co. KGaA / Key word(s): 9-month figures
CEWE confirms all its annual targets after sound Q3
13.11.2018 / 07:00
The issuer is solely responsible for the content of this announcement.
CEWE confirms all its annual targets after sound Q3
- Group turnover increases by 5.3% to 137.2 million euros (Q3 2017: 130.3 million euros)
- Trend towards higher-quality photo products continues: Turnover per photo increases by 8% to 19.55 cents
- CEWE perfectly equipped for Christmas business: more and more CEWE PHOTOBOOKS, CEWE CALENDARS and other photo products are being given as Christmas gifts
- Seasonal shift is maintained: Q4 once again to generate complete target EBIT
Oldenburg, 13 November 2018. CEWE Stiftung & Co. KGaA (SDAX, ISIN: DE 0005403901) reaffirms its income forecast for 2018 against a background of sound development in turnover and earnings: Group turnover in the third quarter rose by 6.9 million to 137.2 million euros, with the EBIT at 1.4 million euros, falling short of the figure for the previous year (Q3 2017: 3.6 million euros). "In the first three quarters of the year, we not only handled the continued seasonal shift to the fourth quarter. At the same time we also assimilated anticipated negative effects resulting from the acquisitions and increases in costs for commercial online printing. With this good development, in particular in the photofinishing segment, we created a sound basis in Q3 2018 to be able to achieve our targets for the year as a whole. We are perfectly equipped for the expected peaks in demand in the fourth quarter," emphasises CEO Dr. Christian Friege.
Just as in previous years, the management expects CEWE to grow once again in the fourth quarter and to reach all its target figures. In the past few years, the fourth quarter has become increasingly more significant for the results achieved by the Group during the year as a whole. The planned annual yield is to be generated in the fourth quarter of the current financial year as well: For twelve years, the earnings contribution of the important Christmas quarter has increased year on year. In 2018 the overall aim is for the EBIT is to reach an amount in the range of 48 million to 54 million euros, with Group turnover increasing from 630 million to 665 million euros. The EBT for the 2018 financial year is to be in the range of 47.5 million to 53.5 million euros, with after-tax earnings at 33 million to 37 million euros.
Photofinishing: increase in turnover and clear growth in revenue per photo
Core business, which was negatively affected by an unusually long, hot summer, was more than compensated for by the Cheerz acquisition. Photofinishing achieved turnover of 100.4 million euros overall in Q3, which was an increase of 4.3% against that of the previous year (Q3 2017: 96.3 million euros). The brand products CEWE WALL ART and CEWE CALENDARS showed a strong increase in volume, while weather conditions, which were not order friendly, and the ongoing seasonal shift to the fourth quarter saw the number of CEWE PHOTOBOOK copies, at 1.32 million books, somewhat reduced against the number sold in the previous year (Q3 2017: 1.36 million books). In addition to the contribution to earnings by Cheerz, which was still (as scheduled) negative, the seasonal shift also resulted in the achieved photofinishing EBIT of 3.1 million euros falling short of the figure for the previous year (Q3 2017: 4.1 million euros). The trend towards high-quality photo products was maintained unchanged: the revenue per photo increased against that of the previous year by 8.0%, to 19.55 cents (Q3 2017: 18.11 cents).
Commercial online printing grows significantly as a result of LASERLINE acquisition
At 23.9 million euros, turnover in commercial online printing rose by 18.2% (Q3 2017: 20.2 million euros) mainly as a result of the acquisition of LASERLINE. This business segment also reported a slight organic increase in turnover in spite of the continued Brexit-induced decline in business in Britain and the ongoing strong price pressure in domestic competition. On the inclusion of the expected negative contribution to EBIT by LASERLINE, the business segment of online commercial printing reported negative EBIT of -0.9 million euros (Q3 2017: 0.4 million euros). In addition to the integration costs for LASERLINE, higher paper prices in the cost of sales and an increase in personnel costs had a negative effect on earnings. As of 2019, LASERLINE is to contribute positively to EBIT.
Focus on photofinishing products reduces hardware sales in retailing
In retailing, CEWE continues to focus on photofinishing products and high-quality, high-margin premium cameras while consciously abstaining from low-margin sales. This is why retailing recorded a decline in turnover to 11.8 million euros in the third quarter (Q3 2017: 13.0 million euros). In spite of the lower turnover, the EBIT, at -0.1 million euros, was at exactly the same level as in the previous year. In this case it must be taken into account that the turnover of photofinishing products achieved in retailing are reported in the business segment of photofinishing.
Brisk Christmas business expected in Q4
Q4 is traditionally decisive for the net result of the company. "Our high-quality photo products, in particular the CEWE PHOTOBOOK and CEWE CALENDAR, are an ideal, very personal Christmas gift. This is why we expect Christmas business to be strong this year again, the outcome of which will be that we achieve all our corporate targets," says Dr. Christian Friege. Developments in October make him optimistic.
Capital ratio is 54.8%, ROCE 15.1%
The capital ratio was an extremely sound 54.8% as at 30 September 2018 (30 September 2017: 57.0%). As a benchmark, the return on capital employed (ROCE) fell from 19.3% on 30 September 2017 to what is still a very respectable 15.1% as at the seasonal-related low, with the acquisitions of Saxopark, Cheerz and LASERLINE raising the capital employed and reducing the ROCE. CFO Dr. Olaf Holzkämper: "Our sound financial situation and our high earning power make it possible for us to continue to develop our business segments in future. Our staff, our customers and not least of all our shareholders, whom we wish to continue to offer increasing dividends, benefit from this development."
CEWE shows innovative technologies at the photokina
CEWE presented some solutions for innovative further developments at the photokina trade fair in Cologne at the end of September. The products presented by the company included "hexxas" - hexagonal photo tiles which are fastened to the wall with magnets just as you choose. Another major topic for CEWE customers was the company's 'Smart Solutions' for example, the "CEWE PHOTOBOOK on Command", which is an assistant system for creating a book which will in future make use of different technologies such as face recognition, voice control and artificial intelligence. During the trade fair, CEWE was also awarded the prestigious TIPA World Award as the "Best Photo Print Service Worldwide" for its technology to enhance the cover of the CEWE PHOTOBOOK. Previously, the CEWE PHOTO BOOK pure had been awarded the well-known EISA Award as "Best Product 2018/2019".
Earnings per business segment in the third quarter and the first nine months of 2018
| CEWE | Unit | Q3 2017 | Q3 2018 | Q1-3 2017 | Q1-3 2018 |
| (1) Fotofinishing |
|
|
|
|
|
| Total prints | in m. units |
531.7 |
513.7 |
1,393.5 |
1,412.0 |
| CEWE PHOTOBOOK | th. books |
1,361.1 |
1,322.7 |
3,640.2 |
3,691.7 |
| Turnover | in EUR m. |
96.3 |
100.4 |
264.0 |
280.8 |
| EBIT | in EUR m. |
4.1 |
3.1 |
5.7 |
3.5 |
| Purchase price allocation effects | in EUR m. | -0.1 | -0.1 | -0.3 | -0.3 |
| Revenue from property in Denmark | in EUR m. | - | - | 0.5 | - |
| Revenue from the operation in Nuremberg | in EUR m. | - | 1.2 | - | 1.2 |
| Non-recurring costs for photokina | in EUR m. | - | -1.3 | - | -1.3 |
| EBIT before one-off effects | in EUR m. |
4.2 |
3.3 |
5.5 |
3.9 |
| (2) Retailing |
|
|
|
|
|
| Turnover | in EUR m. |
13.0 |
11.8 |
38.0 |
35.1 |
| EBIT | in EUR m. |
-0.1 |
-0.1 |
-0.4 |
-0.8 |
| (3) Commercial Online-Print |
|
|
|
|
|
| Turnover | in EUR m. |
20.2 |
23.9 |
60.7 |
73.0 |
| EBIT | in EUR m. |
0.4 |
-0.9 |
0.2 |
-3.0 |
| Purchase price allocation effects | in EUR m. | -0.1 | -0.1 | -0.5 | -0.5 |
| LASERLINE integration costs | in EUR m. | - | -0.3 | - | -0.8 |
| EBIT before one-off effects | in EUR m. |
0.5 |
-0.4 |
0.7 |
-1.7 |
| (4) Other |
|
|
|
|
|
| Turnover | in EUR m. |
0.8 |
1.0 |
2.2 |
2.8 |
| EBIT | in EUR m. |
-0.9 |
-0.7 |
-2.3 |
-1.7 |
| Purchase price allocation effects | in EUR m. | -0.1 | - | -0.3 | - |
| EBIT before one-off effects | in EUR m. |
-0.7 |
-0.7 |
-1.8 |
-1.7 |
| CEWE Group | Unit | Q3 2017 | Q3 2018 | Q1-3 2017 | Q1-3 2018 |
| Turnover | in EUR m. |
130.3 |
137.2 |
364.9 |
391.7 |
| EBIT | in EUR m. |
3.6 |
1.4 |
3.2 |
-1.9 |
| One-off effects | in EUR m. | -0.4 | -0.7 | -0.7 | -1.7 |
| EBIT before one-off effects | in EUR m. |
4.0 |
2.1 |
3.9 |
-0.2 |
| EBT | in EUR m. |
3.8 |
1.2 |
3.4 |
-2.2 |
| Earnings after tax | in EUR m. |
2.5 |
1.0 |
2.1 |
-1.5 |
Rounding errors may arise.
Notes to the "Earnings by Business Segment" chart
(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: Trading in photo hardware, such as cameras or lenses, in Norway, Sweden, Poland, the Czech Republic and Slovakia.
(3) Commercial online printing: Production and sale of the commercial print products in the online printing portals, e.g. CEWE-PRINT.de, SAXOPRINT, Viaprinto and LASERLINE.
Should you have any queries, please contact:
CEWE Stiftung & Co. KGaA, Axel Weber (Investor Relations)
Tel.: 0441 / 404 - 2288, Fax: 0441 / 404 - 421, Email: IR@cewe.de
Internet: cewe.de , deindesign.de , cewe-print.de , viaprinto.de , saxoprint.de , laserline.de
The CEWE apps are all available in the app stores: CEWE PHOTO WORLD, CEWE POSTCARD, CEWE SERVICE and other photo apps, and the CEWE Investor Relations app for iPad(c) or android tablets, with annual reports and quarterly reports, presentations and sustainability reports.
Financial schedule:
(insofar as already scheduled)
26.11.2018 2018 German Equity Forum
4./5.12.2018 Zurich/Geneva roadshow with Baader Bank AG
11.12.2018 Paris roadshow with ODDO BHF
12.12.2018 ESN Conference, London
10.2.2019 Oddo Forum, Lyon
28.3.2019 CEWE Annual Report and analysts' press conference, Frankfurt
28.3.2019 Publication of the 2018 Annual Report
3.4.2019 Bankhaus Lampe Deutschland Conference, Baden-Baden
About CEWE: The innovative photo and online print service company, with twelve highly-technical production operations and a staff of around 3,600 employees in 24 European countries, is both market and technological leader. In 2017 CEWE delivered around 2.2 billion prints, 6.0 million CEWE PHOTO BOOK copies and numerous photo gift articles to more than 20,000 retail partners to generate consolidated turnover of 599.4 million euros. The company is continuously generating new impulses in the photographic industry with innovations for people who enjoy taking photos. CEWE is a leading company when it comes to climate protection. CEWE brand products are all produced in a climate-natural process. In the "commercial online printing" business segment, printed material for businesses is marketed through the sales platforms of CEWE-PRINT.de, SAXOPRINT, viaprinto and LASERLINE. Founded by Senator h. c. Heinz Neumüller in 1961, CEWE has been listed on the stock exchange since 1993 and is an SDAX member.
13.11.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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