CEWE with turnover and earnings growth in Q1

Strong start to the year: CEWE with turnover and earnings growth in Q1

• Strong first quarter confirms annual forecast for 2024
• Group turnover increases by 6.6% to EUR 165.7 million, EBIT rises to EUR 8.1 million
• Innovative: CEWE Group recognized with three TIPA World Awards
• CEWE is top dividend increaser: 2nd place out of 611 German listed companies

Oldenburg, May 15, 2024 - CEWE Stiftung & Co. KGaA (SDAX, ISIN: DE 0005403901) has made a good start to the 2024 financial year. Group turnover increased by +6.6% to 165.7 million euros in the first quarter of 2024, setting a new high for a first quarter (Q1 2023: 155.3 million euros). At the same time, Group EBIT improved by EUR 2.9 million to EUR 8.1 million (Q1 2023: EUR 5.2 million). All business segments contributed to this: The earnings momentum is largely driven by the core business segment Photofinishing with an EBIT increase of 2.4 million euros, Commercial Online-Print improved its EBIT by 0.4 million euros and Retail was also able to improve its earnings contribution by 0.1 million euros. "The strong first quarter in terms of turnover and earnings is an impressive team effort by all CEWE employees and a very successful start to the year, which confirms the trend of a continuously stronger first quarter and also reinforces our planning for 2024. We are particularly pleased that the innovative strength of the CEWE Group has once again been recognized and honoured by the international expert jury of the 'Technical Image Press Association' with three TIPA World Awards," emphasized Yvonne Rostock, Chairwoman of the Board of Management of CEWE Stiftung & Co. KGaA. With the strong development of the first quarter, the company is clearly on course to achieve its annual targets: CEWE's management is forecasting Group turnover of up to 820 million euros and Group EBIT of up to 87 million euros for 2024. With the 15th consecutive dividend increase, CEWE recently rose to second place - among all 611 German listed companies surveyed that have continuously increased their dividends (measured by the duration of dividend increases in years).

Photofinishing: Strong Q1 results and three TIPA World Awards

In the first quarter of 2024, photofinishing turnover once again rose significantly by +9.1% to 137.6 million euros (Q1 2023: 126.1 million euros), while photofinishing EBIT recorded an increase of 2.4 million euros and reached 7.5 million euros (Q1 2023: 5.2 million euros). Outstandingly innovative: the CEWE Group wins three TIPA World Awards at the beginning of the year, once again documenting the company's innovative strength. The 'Best Photo Service' award went to the free-form stickers, which can be created, cut and picked directly at the CEWE photo station, the Pixum app as 'Best Consumer Photo Print App' and WhiteWall as 'Best Photo Lab' for ultraHD sharpening of black-and-white prints. The Technical Image Press Association's annual award recognizes innovative excellence in the photographic industry.

Commercial Online-Print further increases profitability

The Commercial Online Print (COP) business segment continues to benefit from the cost efficiency achieved in production at SAXOPRINT and the resulting "best price guarantee" for its customers: Despite a slight decline in turnover, COP managed to improve EBIT by EUR 0.4 million to EUR 0.8 million (Q1 2023: EUR 0.4 million) on the basis of the continuously optimized cost structure. The business segment held its own against the competition and recorded a decline in turnover of 4.9% to EUR 21.4 million in the first quarter (Q1 2023: EUR 22.6 million) in what is currently a slightly declining market overall.

CEWE retail continues to be well positioned 

Hardware retail achieved a turnover of 6.6 million euros in Q1, only slightly below that of the same quarter of the previous year (Q1 2023: 6.7 million euros). CEWE is systematically avoiding lower-margin retail business in the area of photo hardware (cameras and accessories) and continues to focus on business with Photofinishing products (reported in the Photofinishing segment). The business segment even improved EBIT slightly to -0.1 million euros in the typically seasonally weak first quarter (Q1 2023: -0.2 million euros).

Traditionally solid equity ratio reaches 66.6%, ROCE rises to 19.2

At a very solid 66.6%, the equity ratio is slightly below the previous year's level (31.03.2023: 67.1%), mainly due to the share buyback. At the same time, the return on capital employed (ROCE) developed positively, rising from 18.0% in the same quarter of the previous year to a very respectable 19.2% as at March 31, 2024: CEWE is creating sustainable value.

Outlook 2024 confirmed with Q1 results

The CEWE management sees the results of the first quarter as confirmation of the targets set and confirms the outlook for 2024: Group turnover is expected to reach a value in the range of 770 to 820 million euros in 2024, while Group EBIT is expected to be in the corridor of 77 to 87 million euros in 2024. The CEWE management targets are based on values in the upper half of the ranges; the lower end of the corridors solely reflects exogenous uncertainties that cannot be influenced by the company, such as a worsening inflation-related increase in prices. CEWE itself does not currently see any effects of inflation on its own business: photo products in particular have a very high emotional value for many people and are increasingly in demand, largely independently of the overall economic development.

CEWE is a top dividend increaser: 15th dividend increase in a row

Based on the results for the 2023 financial year, the Management Board and Supervisory Board have proposed to the Annual General Meeting that the dividend be increased to EUR 2.60 per dividend-bearing share (dividend for the 2022 financial year: EUR 2.45). Subject to shareholder approval at the Annual General Meeting to be held on June 5, 2024, the proposed dividend of EUR 2.60 per share (based on the 2023 year-end share price of EUR 101.20) corresponds to a dividend yield of 2.6%. This is the fifteenth consecutive dividend increase and also the highest dividend in the company's history. According to the recently published 'Dividend Study Germany 2024' by Dividenden Adel, isf Institut and Deutsche Schutzvereinigung für Wertpapierbesitz DSW, CEWE ranks second among all 611 German listed companies surveyed that have continuously increased their dividends.

Overview Results Q1 2024

Rounding differences may occur. Exact values have always been used for percentage deviation calculations.

Notes to the "Earnings by Business Segment" chart

(1) Photofinishing:  Production and sale of photo products such as the CEWE PHOTOBOOK, calendars, greeting cards, wall art and individual (analogue and digital) photos as well as other photo products

(2) Retailing: Trading in photo hardware, such as cameras and lenses, in Norway, Sweden, Poland, the Czech Republic and Slovakia

(3) Commercial online printing: Production and sale of commercial print products in the online printing portals of SAXOPRINT, viaprinto and LASERLINE

Should you have any queries, please contact:
CEWE Stiftung & Co. KGaA, Axel Weber (Investor Relations)
Tel.: 0441 / 404 - 552, Fax: 0441 / 404 - 421, Email: IR@cewe.de

Internet:  cewe.de , pixum.de , deindesign.de , whitewall.com , cheerz.com ,  

saxoprint.de, viaprinto.de , laser-line.de

You are welcome to join us at one of these investment conferences or to follow up on our pending publications:

Financial schedule

(insofar as already scheduled)

05.06.2024 Annual General Meeting 2024, Weser-Ems-Halle Oldenburg

15.08.2024 Publication Interim Report H1 2024

22.08.2024 Montega Conference HIT, Hamburg

25.09.2024 Berenberg & Goldman Sachs German Corporate Conference 2024, Munich

26.09.2024 Baader Investment Conference 2024, Munich

14.11.2024 Publication Interim Statement Q3 2024

20.11.2024 CIC Market Solutions Forum, Paris

25.11.2024 Deutsches Eigenkapitalforum 2024, Frankfurt

About CEWE:

The CEWE Group is Europe's leading photo service and online printing supplier.

From its beginnings in 1912, CEWE has progressed to become the leading photo service company for all those wanting to make more of their photos. This is mainly due to the much-awarded CEWE PHOTOBOOK, with about six million books being sold each year. Customers can purchase other personalised photo products under the brand names of CEWE, Cheerz, DeinDesign, Pixum and WhiteWall – and from many leading retailers in Europe. They are inspired to produce a variety of creative designs from their personal photos in these brand environments, entrusting the company with more than 2 billion photos every year.

The CEWE Group has also set up a highly efficient production system for advertising prints and business prints for the online printing market. Every year billions of high-quality printed products are delivered reliably to their purchasers through the SAXOPRINT, LASERLINE and viaprinto sales platforms.

The CEWE Group, through the founder family of Neumüller as an anchor shareholder, focuses on sustainable corporate management and has already received many awards for this effort:  economically sustainable in the long term; cooperative and fair in dealings with customers, employees and suppliers; socially responsible and protective of the environment and resources.

The CEWE Group has a staff of 4,000 employees and operates in 21 countries. CEWE is listed on the SDAX. More information is available at company.cewe.de.