RESILIENT PERFORMANCE IN FY 2020/21: SUCCESSFUL OMNICHANNEL MODEL ENABLED CECONOMY TO NAVIGATE THROUGH THE PANDEMIC WITH GROWING SALES AND STABLE EBIT

Dusseldorf, 26 October 2021

  • Sales growth1 and adjusted EBIT2 well within guidance range; full-year sales exceed both prior year and even the pre-pandemic FY 2018/19
  • FY 2020/21 sales rose by +3.8% despite longer and tighter COVID-19 restrictions; adjusted EBIT matches previous year's level (FY 2019/20: 236 €m)
  • Q4 2020/21 sales remained high; only slight decline of -1.0% against the backdrop of prior year's catch-up demand boost; sales rose by +6.0% compared to pre-pandemic Q4 2018/19; adjusted EBIT up slightly (Q4 2019/20: 123 €m)
  • Online sales continued to grow strongly, reaching 6.9 €bn (FY +64.9% and Q4 +24.7%) driven by higher number of visits, higher conversion rate and an increased average basket, and accounting for 32.5% of total sales in FY 2020/21
  • Focus now on upcoming Black Friday period and Christmas trading as well as accelerating the omnichannel strategy; organization is well prepared to manage supply chain uncertainties

"In the 2020/21 financial year, we served the high demand for consumer electronics and grew our business beyond pre-pandemic levels. This is a great achievement since COVID-19 restrictions lasted much longer than in the previous year, particularly in Germany. However, our results for the financial year demonstrate our relevance to customers and the resilience of our business model. I would like to thank all our people for their hard work and dedication when coping with the pandemic and serving our customers. This performance provides a healthy, robust foundation on which we further execute and accelerate our omnichannel strategy. Our focus is now on the upcoming peak season. Looking ahead to Black Friday and the Christmas period, we recognize the existence of supply chain uncertainties currently affecting our industry. Nevertheless, we are well prepared to serve our customers in the best possible way - and are determined to do so," Dr Karsten Wildberger, CEO of CECONOMY.

1Sales growth = Total sales growth adjusted for currency effects and portfolio changes

2Adjusted EBIT = EBIT excluding associates and non-recurring effects, and adjusted for portfolio changes

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FY 2020/21 preliminary results

  • Sales1 increased by +3.8% (+4.1% on a like-for-like basis) thanks to strong customer demand for consumer electronics and successful campaigns; significant growth in online business partially offset by decline in brick & mortar sales due to significantly longer temporary store closures
  • Countries: Italy, Spain and Turkey performed particularly well, more than making up for the challenges in Germany and the Netherlands, which suffered from long lockdowns and opening restrictions
  • Product categories: Demand was especially high for gaming consoles, TVs and computer hardware as well as telco products and accessories, while the entertainment and photo category remained down on the prior year
  • Online sales rose +64.9% to 6.9 €bn, demonstrating the success of our omnichannel strategy; online sales reached 32.5% of total sales (FY 2019/20: 20.2%); average basket value further increased from an already high level; strong uplift in conversion; pick-up ratio came in at 38%; around 8 million new webshop customers
  • Services & Solutions sales declined by -2.4% due to temporary store closures and lower store traffic; against this trend, solid demand for extended warranties and Smartbar services as well as fast-growing online attachment rate; Services & Solutions sales share came in at 5.2% of total sales (FY 2019/20: 5.4%)
  • Adjusted EBIT matched prior year's level (FY 2019/20: 236 €m), which is well within the guidance range of 210 €m to 250 €m; gross margin down, but fully offset by sales increase and ongoing cost savings

Q4 2020/21 preliminary results

  • Sales1 remained high and declined only slightly by -1.0% (down -1.2% on a like-for-like basis) against the backdrop of prior year's high catch-up demand; sales increased strongly by +6.0% compared to pre-pandemic level of Q4 2018/19
  • Countries: Lower sales in Germany and Spain, while Italy exceeded previous year; heterogenous development among other countries
  • Product categories: Positive development in gaming consoles and telco products, offset mainly by white goods and computer hardware
  • Online sales rose +24.7% to 1.1 €bn driven largely by an increased average basket; online sales share at 20.5% of total sales (Q4 2019/20: 16.1%); pick-up ratio above 40%
  • Services & Solutions sales increased by +27.0%, amounting to 6.1% of total sales (Q4 2019/20: 4.7%); continuous recovery of Services & Solutions business following store

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reopening; online attachment rate grew particularly strongly, plus sound demand for extended warranties and Smartbar services

  • Adjusted EBIT improved slightly compared to prior year (Q4 2019/20: 123 €m); gross margin stable, while sales decrease was more than made up for by operating cost savings

All figures reported herein are preliminary and unaudited. Full financial disclosure of the results for the 2020/21 financial year will be published on 14 December 2021 at 07:00 CET.

Financial ratios: Further background regarding the financial ratios referred to can be found on pages 28 to 30 of the annual report for the 2019/20 financial year published on the company's website: https://www.ceconomy.de/media/ceconomy_annual_report_2019_20.pdf

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APPENDIX

Preliminary sales development

Online and Services & Solutions

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Store network

Financial calendar

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CECONOMY AG published this content on 26 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2021 05:05:05 UTC.