Business News
CEWE: Sales, turnover and profit on target at mid-year
Wednesday 14. August 2013 - - Turnover grows by 7.8% to EUR 218.2 million - Online printing rises by 60.4% to EUR 27.2 million - Capital ratio continues to rise, to 38.1% - Christmas season decisive for annual net income - Annual forecast confirmed
CEWE COLOR Holding AG (SDAX, ISIN: DE 0005403901) continued to grow in the first six months of 2013, increasing turnover by 7.8% to EUR 218.2 million. Besides strong growth in the future business of online printing (+60.4%, to EUR 27.2 million), retail business (+7.6% to EUR 52.2 million) and photofinishing (+1.4% to EUR 138.8 million) also contributed to this increase. In the first half-year period, which is typically negative for seasonal reasons, the operative Group EBIT (adjusted by EUR 3.3 million in extra expenses for location mergers) was – EUR 7 million (previous year adjusted by extra expenses: – EUR 6.1 million). The proportion of earnings in the annual net income generated in the first six months of the year is reduced due to the continuing seasonal shift into the fourth quarter. The 12-month return on capital employed (ROCE) reached 13.8%. ‘We are thus fully in line with our target for 2013 in all our categories, and we are confirming our forecast. We made intensive use of the first six months to prepare ourselves for the fourth quarter, the period which is the focus of our turnover and earnings, with product innovations and with reinforcing the brand,’ says Dr. Rolf Hollander, Chairman of the Board of Management of CEWE COLOR Holding AG. In spite of the positive development in the first six months, the seasonal shift to the fourth quarter resulting from digitisation will continue with a negative impact on the third quarter.
Turnover per photo grows with the trend to added value products
The positive development in the business segment of photofinishing, with turnover growing by 1.4% to EUR 138.8 million, is the result of a trend towards added value products. In the first six months of 2013, sales of the CEWE PHOTO BOOK rose by 3.5% to 2.195 million books. At 967.8 million photos sold, turnover per photo increased by 7.0% over that of the same period of the previous year in the first six months of 2013.
Profitability in core business guarantees growth
Photofinishing at the beginning of the year has always been referred to as ‘selling ice cream in winter’. The resulting permanently negative earnings in the first six months has for years now been additionally weakened by the seasonal shift in business to the fourth quarterly period. Against this background, CEWE views the improvement in operative photofinishing EBIT from – EUR 4.4 million in the period of the previous year to – EUR 4.1 million in the first six months of 2013 as an important achievement. ‘The distribution of roles in the business segments can already be recognised in the first six months: Progress in photofinishing enables us to invest in our growth sector of online printing,’ says Dr. Hollander.
Capital ratio increases – total return of 14.6% for shareholders in the first six-month period
In spite of the dividend of EUR 1.45 per share paid out on 6 June, the CEWE capital ratio grew from 37.2% on 30 June 2012 to a sound 37.2%. Based on a positive share-price development (+EUR 3.07 to EUR 34.11) and on the dividend, the total return for shareholders was EUR 4.52 in the first six months of 2013. This is equivalent to a return of 14.6% in relation to the 2012 closing share price (EUR 31.04).
EBIT in the range of EUR 27 to 33 million expected, despite growth investments in online printing
On the basis of the first six months, the Board of Management sees its annual target confirmed, and expects to see more growth in 2013. Full-year turnover in the growth sector of online printing is to increase by around 40%, to EUR 60 million, with Group turnover rising in the range of 1% to 5%, to EUR 510 to 530 million. The EBIT should be in the range of EUR 27 to 33 million in 2013, and earnings per share should amount to EUR 2.44 to EUR 3.06.