Business News

CEWE COLOR hits its annual targets for 2012

Thursday 17. January 2013 - 2012 sales over 500 million euros for the first time

Target profit for 2012 also hit
Outstanding Christmas sales in photofinishing
Online printing contributes to strong growth
Consolidation of Dresden businesses
CEWE COLOR Holding AG (SDAX, ISIN: DE0005403901) for the first time recorded sales of over 500 million euros in the 2012 fiscal year (2011: 469 million euros) and target earnings before interest and tax (EBIT) of 27 to 33 million euros were also achieved. The CEWE PHOTOBOOK and online printing are strong growth drivers. Whereas CEWE COLOR only recorded sales of low single-digit million euros in 2011, this figure rose to more than 40 million euros in 2012. The company is likely to publish its preliminary, unaudited results at the end of February.
Outstanding Christmas sales in photofinishing
With a sustained brand awareness of around 48% in Germany , the CEWE PHOTOBOOK was once again “the” Christmas gift idea for many consumers. A number of new photo products that CEWE COLOR had brought out in 2012 were also much in demand for Christmas alongside the CEWE PHOTOBOOK, photo calendars, greeting cards and wall decorations. There were also strong sales in personalised iPad and Smartphone cases, high-quality cushions and fabric products with personal photographic images as well as new ceramic products – also via the new CEWE PHOTOWORLD app for tablets and smartphones. All CEWE COLOR businesses had planned outstandingly for the Christmas peak season and delivered all the photographic products on time with short delivery times. Testers from the Warentest consumer testing group were also satisfied with the products. “CEWE produces the best photo calendar,” commented the press. “I’d like to strongly praise all our divisions – our Christmas sales were once again outstanding!” states Dr. Rolf Hollander, Executive Chairman of CEWE COLOR Holding AG, looking back at December 2012.
Once again seasonal shift to the fourth quarter
The success of the new products, above all the CEWE PHOTOBOOK, has been driving the seasonal shift of sales and earnings at CEWE for years: whereas formerly the third quarter of a year delivered the largest contribution to turnover and profit, today this has shifted to the fourth quarter. There are two reasons for this trend: firstly the decline in individual photographs (both analogue and digital), spread throughout the entire year with a focus in the summer, and secondly the strongly rising demand for value-added products for which there was high demand as gifts at Christmas. “While we continue to have a seasonal shift, our
forecasts will continue to rise for the fourth year from year to year. We managed to meet them again in 2012,” explains Dr. Olaf Holzkämper, Chief Finance Officer. “Also as predicted: we also dealt successfully with the disappearance of Schlecker, formerly our biggest trading partner, at the start of 2012.”
Online printing exceeds growth targets
“Even now, in the early stages of producing the 2012 Annual Report, we are also very certain about exceeding our target sales figure of 40 million euros in online printing,” reports Executive Chairman Dr. Hollander, commenting on the company’s growth. The acquisition of the Saxoprint Group in 2012, the new CEWE PRINT brand launched in August 2012 with a successful advertising campaign and the viaprinto brand would all have contributed to the Group’s growth with printed advertising materials for corporate customers – such as flyers, folders, posters and visiting cards. The combination of football banner advertising and TV commercials for CEWE PRINT is working and is transforming CEWE into a veritable brand-name company. “Our strategy is working: During the last decade in photofinishing, we have virtually replaced our analogue business almost completely with our new digital business. We are now working in this sector with an innovative range of products to maintain our sales at this high level. Online printing will contribute to our growth, now and in the future. The potential in this market is growing strongly – and we are growing at the same rate,” explains Dr. Hollander.
Consolidation of Dresden businesses increases headcount Saxoprint
CEWE COLOR’s total online printing volume is largely handled by Saxoprint in Dresden, with our successful growth creating significant staffing needs. In parallel, CEWE COLOR operates by far the smallest German photofinishing business in Dresden. Our strong growth in online printing now makes efficient restructuring possible: “If we consolidate these businesses, we can meet the personnel requirements at Saxoprint with our own qualified CEWE employees and, at the same time, elevate our photofinishing businesses to the right and consistent level of efficiency,” explains Dr. Hollander. Ultimately industrial, highly-efficient photofinishing is one of CEWE COLOR’s main strengths. All employees of the former CEWE COLOR business in Dresden will receive an offer of employment from Saxoprint in Dresden or a comparable job within the CEWE Group. The company’s four large production plants will then absorb the production volume of the small older Dresden business. Furthermore, production in Poland will be concentrated on the plant in Kozle. Sales and Customer Service will remain at the second, much smaller site in Graudenz.
Outlook: Photofinishing stable, online printing growing
The Executive Board expects CEWE PHOTOBOOKS, photo calenders, greeting cards and wall decorations to maintain the high level of sales and earnings in photofinishing in 2013, as in 2012, while online printing will contribute further stimulus for growth in the short term and profit in the medium term. CEWE COLOR will announce a specific forecast for the 2013 fiscal year on 27th March 2013 at its press conference for its Annual Report.