Corporate | 12 November 2015 07:00

CEWE expects to see an increase in sales and earnings for 2015

DGAP-News: CEWE Stiftung & Co. KGaA / Key word(s): 9-month figures

2015-11-12 / 07:00

CEWE expects to see an increase in sales and earnings for 2015

– Q3 2015 is within the target corridor: CEWE confirms its forecast

– Before important Christmas business: CEWE PHOTO BOOK is the Stiftung Warentest (German consumer foundation) test winner

– Commercial Online-Print with double-digit percentage growth over previous year

– Foundation laid for more growth

Oldenburg, 12 November 2015. CEWE Stiftung & Co. KGaA (SDAX, ISIN: DE 0005403901) confirms its aim of improving income over the target figures for 2014 by around 2 million euros after the first nine months of 2015. The EBIT target corridor for 2015 is at around 32 to 38 million euros. On a 12-month basis, the company has already achieved EBIT of 33.3 million euros. “In terms of generating our target profit for the year as a whole, we have made more progress after the third quarter than in previous years. Our annual targets are within reach before our important Christmas business. All three business segments have contributed,” says Dr. Rolf Hollander, Chairman of the Board of Management of CEWE Stiftung & Co. KGaA. In the first nine months of 2015, with Group turnover increased by 2.9 % to 338.4 million euros, EBIT was also improved, by 13.4% to 4.1 million euros. Adjusted by restructuring costs incurred in Q3, the operative EBIT even rose by as much as 34.4% to - 3.1 million euros. For three years now, CEWE has generated more than 100% of its annual net income in the fourth quarter alone.

The growth segment of online printing with renewed dynamic growth
After growth of 7.1% at mid-year in 2015, the increase in commercial online printing was again more dynamic in Q3, so for the period of the first three quarters of the year, turnover climbed to increase by 10.1%, to 55.0 million euros (Q1-3 2014: 50.0 million euros). EBIT for the first three quarters improved slightly from -2.6 million to -2.5 million euros. In commercial online printing, the period with the highest sales and income is also the fourth quarter the same as in photofinishing: Many business customers get ready for their Christmas business as early as in October and November, which means that they order more printed material for advertising. Dr. Hollander: “Our business segment of commercial online printing is thus on track to achieve the annual target for 2015 of around 80 million euros.”

Retailing earnings improved
The reorganisation of retail business in Poland is bearing fruit: the current clearly stronger focus on photofinishing products in retail business (shown in the business segment of photofinishing) and the modified price policy for photo hardware are at present continuing to reduce sales in this business segment (Q1-3 2015: -11.2% to 43.5 million euros), but the quality of sales is obviously improving. Adjusted by the essential restructuring expenses (in Q1 2015 0.6 million euros were incurred), EBIT rose by 0.7 million euros to -0.8 million euros. In the third quarter of the year, retailing, at -0.1 million euros, even achieved a virtually balanced profit (Q3 2014: -0.4 million euros).

Added-value products see photofinishing growing in 2015 as well
Sales, turnover and profit are on target in the business segment of photofinishing: Turnover grew by 4.3% to 239.8 million euros, which was slightly stronger than expected as the positive trend in CEWE added-value products (CEWE PHOTO BOOK, CEWE CALENDARS, CEWE CARDS, CEWE WALL PICTURES) continued. CEWE is ideally positioned for the upcoming Christmas business: just recently, the CEWE PHOTO BOOK was awarded first place by Stiftung Warentest, the German consumer foundation, as the best photo book. The CEWE PHOTO WORLD app also came in first in a test conducted by the trade journal connect. “We are superbly positioned for Christmas business, on the product side and in terms of our order apps and mobile apps, and we are looking forward to pleasing our customers with our photo products this year again,” says Dr. Hollander.
The EBIT for the photofinishing business segment, at -0.3 million euros, slightly exceeded the figure for the previous year (Q1-3 2014: -0.7 million euros), even though CEWE has invested more in marketing measures than in the previous year in preparation for the high-turnover Christmas quarter. “The photofinishing sector also bore a few hundred thousand euros in costs resulting from the acquisition of shares in companies with which we intend to lay the foundations for the growth phase to follow after the next one,” Dr. Hollander explains.

Foundation laid for more growth

As already published in the interim report on the second quarter, CEWE acquired a majority shareholding in DeinDesign at the beginning of the third quarter, in order to further expand its photofinishing range. DeinDesign offers personalised tablet and mobile phone covers, ideal for rounding off our products in the photofinishing business segment.
CEWE also acquired a majority shareholding in the start-up company futalis in the third quarter. futalis operates online sales of high-quality pet food in compliance with veterinary aspects. Dr. Hollander: “When seeking opportunities for participation, we focus mainly on online business models, which – just like CEWE – produce personalised, high-quality products with considerable benefits for customers, thus establishing a strong brand and at the same time forwarding CEWE as a company in future.” In particular, participation in the High-Tech Gründerfonds (HTGF II), a venture capital investment firm initiated by the Federal Government, gives CEWE a good overview of business start-ups and opportunities for participation. “We mustn’t expect any significant contributions to earnings from start-ups in the coming few years, and we shouldn’t overload these companies with inflated expectations. It’s important that they give rise to growth areas to contribute appreciably to sales and earnings in five to ten years,” Dr.Hollander points out.

2015 targets confirmed: earning power and dividends to continue to increase
In 2015, the Group turnover for all the business segments is to be in the range of 515 million to 535 million euros (2014: 523.8 million euros), the EBIT is to be in a target corridor of 32 million to 38 million euros in 2015 (2014: 32.6 million euros), the EBT in a target corridor of 30 million to 36 million euros (2014: 31.5 million euros), after-tax earnings in a target corridor of 20 million to 24 million euros (2014: 21.4 million euros) and earnings per share are to be in the range of 2.87 to 3.45 euros (2014:. (3.07 euros per share). “We also want to remain reliable in terms of dividends, which we intend to increase again in the coming few years,” says Chairman Hollander.

CEWE business segments [EUR million]		Q1-3 2015	Q3 2014	Q3 2015
(1) Photofinishing (PF)
Turnover	230.0	239.8	89.4	91.7
EBIT (before restructuring)	-0.7	0.2	4.1	3.3
EBIT margin (before restruct.) [%]	-0.3	+0.1	+4.5	+3.6
EBIT	-0.7	-0.3	4.1	3.3
EBIT margin [%]	-0.3	-0.1	+4.5	+3.6
(2) Retailing (R)
Turnover	49.0	43.5	16.3	15.1
EBIT (before restructuring)	-1.5	-0.8	-0.4	-0.1
EBIT margin (before restruct.) [%]	-3.0	-1.8	-2.4	-0.3
EBIT	-1.5	-1.4	-0.4	-0.1
EBIT margin [%]	-3.0	-3.1	-2.4	-0.3
(3) Commercial online printing
Turnover	50.0	55.0	16.1	18.7
EBIT	-2.6	-2.5	-0.7	-0.4
EBIT margin [%]	-5.2	-4.6	-4.2	-1.9
CEWE Group [EUR million]
Turnover	329.0	338.4	121.8	125.5
EBIT (before restructuring)	-4.8	-3.1	3.0	2.9
EBIT margin (before restruct.) [%]	-1.5	-0.9	+2.5	+2.3
EBIT	-4.8	-4.1	3.0	2.9
EBIT margin [%]	-1.5	-1.2	+2.5	+2.3

Notes to the “Earnings by Business Segment” chart

(1) Photofinishing: Production and sale of photo products such as the CEWE PHOTO BOOK, 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 commercial print products in the online printing portals, e.g. CEWE-PRINT.de, Saxoprint and Viaprinto


Percentages have all been calculated using exact figures.

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 , cewe-fotobuch.de , cewe-photobook.com , cewe-print.de , viaprinto.de , saxoprint.de , deindesign.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:

24 November 2015 German Equity Forum, Frankfurt
7 January 2016 Oddo Forum, Lyon
18 January 2016 German Corporate Conference, UniCredit Kepler Cheuvreux, Frankfurt
23 March 2016 Publication of the 2015 Annual Report
23 March 2016 CEWE Annual Report and analysts’ press conference, Frankfurt
14 April 2016 Bankhaus Lampe Deutschland Conference, Baden-Baden

About CEWE : The innovative photo and online print service company CEWE, with twelve highly-technical production operations and a staff of around 3,200 employees in 24 European countries, is both market and technological leader. In 2014 CEWE delivered around 2.3 billion prints, 5.9 million copies of the CEWE PHOTO BOOK and photo gift articles to around 30,000 retail partners to generate consolidated turnover of 523.8 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 commercial online printing, printed material for businesses is marketed through the sales platforms CEWE-PRINT.de, Saxoprint und Viaprinto. Founded in 1961 by Senator h. c. Heinz Neumüller, CEWE was taken to the stock exchange by 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:	IR@cewe.de
Internet:	www.cewe.de
ISIN:	DE0005403901
WKN:	540390
Indices:	SDAX
Listed:	Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Hamburg, Hanover, Munich, Stuttgart

End of News DGAP News Service

412001  2015-11-12