22.03.2018
CEWE Stiftung & Co. KGaA DE0005403901
DGAP-News: CEWE intends to continue growing in 2018
DGAP-News: CEWE Stiftung & Co. KGaA / Key word(s): Final Results/Forecast
CEWE intends to continue growing in 2018
22.03.2018 / 07:00
The issuer is solely responsible for the content of this announcement.
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CEWE intends to continue growing in 2018
- Corporate targets all reached in 2017
- CEWE PHOTO BOOK withstands a massive increase in VAT
- Ninth consecutive dividend increase sought: 1.85 euros per share
- Turnover and EBIT to rise by up to approx. 10 % in 2018
Oldenburg/Frankfurt am Main, 22 March 2018. CEWE Stiftung & Co. KGaA (SDAX,
ISIN: DE 0005403901) once again achieved all its corporate targets in the
2017 financial year. Thanks to the company's strong earnings and sound
financial position, the Board of Management and the Supervisory Board are
able to propose the ninth consecutive increase in dividends at the Annual
General Meeting. CEWE is aiming for another increase in turnover and
earnings in 2018, with the earning power in photofinishing business in
particular contributing to this rise, in addition to positive earnings in
commercial online printing and retailing once again. This was announced by
CEWE during the Annual Report and Analysts' Press Conference held today in
Frankfurt am Main. "Our goal is to continue to enhance customer satisfaction
as the focus of our activities, thus steadily raising our corporate value
and enabling our shareholders to be a part of this growth," says Dr.
Christian Friege, Chairman of the Board of Management of CEWE Stiftung & Co.
KGaA.
CEWE increases turnover and earnings
An important 2016 trend was maintained: the Group's business segments all
showed positive results. In 2017 CEWE turnover increased by 1.1 % to 599.4
m. euros (previous year of 2016: 593.1 m. euros) and was thus exactly in the
target corridor of 585 m. to 615 m. euros. In the second half-year period in
particular, the CEWE PHOTO BOOK even withstood the difficult market
situation that prevailed especially in Germany as a result of the drastic
increase in VAT, from 7 % to 19 %, which entered into effect in 2017. "Our
customers remain loyal in spite of the higher VAT. This shows that we are on
the right track with our high standards of product quality and customer
service," says Dr. Christian Friege.
Moderate increase in expenditure for marketing reinforces brand awareness
and growth
CEWE invested considerably in CEWE brand products in 2017 as well, slightly
increasing its marketing expenditure for photofinishing. The effects on
brand awareness are clearly positive: unsupported brand awareness was raised
by a considerable 7 percentage points, to reach 57 %. With support included,
as many as 75 % of the respondents knew of the CEWE PHOTO BOOK. Dr. Friege:
"Customers make a conscious decision in favour of CEWE brand products
because they can rely on our performance promise. This is what makes the
brand so strong, and our retail partners in Europe benefit from this
strength." This is one of the reasons why Group EBIT climbed to 49.2 m.
euros in the 2017 financial year (2016: 47.0 m. euros).
After-tax earnings grow by 10.5 %: ROCE remains high at 20.1 %
In 2017 CEWE increased its after-tax earnings by 10.5 %, from 30.4 m. euros
to 33.6 m. euros, thus reaching the top end of the target corridor of 30 to
34 m. euros. Earnings per share increased to 4.70 euros, and were thus at
the upper end of the target corridor of 4.23 to 4.81 euros (2016: 4.25
euros). At 20.1 %, the return on capital employed (ROCE) once again reached
a very good level (2016: 21.3 %).
Increase in earnings makes it possible to raise dividends for the ninth
consecutive year
On the basis of the positive development in earnings and a generally sound
financial situation, the Board of Management and the Supervisory Board have
resolved to propose to the shareholders a dividend of 1.85 euros (2016: 1.80
euros) at the Annual General Meeting on 6 June 2018. This is also the ninth
dividend increase in succession for CEWE. With the dividend proposed,
shareholders are achieving a dividend yield of 2.1 % on the basis of the
price at the end of 2017 (88,05 euros). The total return for shareholders
was 6.24 % last year on the basis of the dividend for 2016 and the
share-price development.
Core business of photofinishing withstands increase in VAT
In spite of the increase in VAT on photo books in Germany, which entered
into force on 1 January 2017 and amounted to 19 % after a previous 7 %, the
biggest CEWE business segment nevertheless increased its earnings. With the
number of photos sold decreasing marginally, turnover in the photofinishing
segment rose by 1.6 % to 459.3 m. euros (2016: 452.0 m. euros). This saw
EBIT, at 53.9 m. euros, exceeding the same figure for the previous year by
3.7 % (2016: 52.0 m. euros). This development is due to the stable trend
towards high-quality photo products, with turnover per photo increasing by
4.3 % to 21.12 eurocents in 2017 - a new record (2016: 20.25 eurocents). The
market situation remained generally difficult for CEWE retailing activities
in 2017, with margins low. Turnover thus dropped by 3.5 % to EUR 53.0 m.
euros (2016: 54.9 m. euros). A slight EBIT decline was also recorded, down
to 0.3 m. euros (previous year: 0.6 m. euros).
Commercial online printing at last year's level in spite of Brexit
In spite of the negative impact of Brexit on UK business and the
considerable price pressure on the market, particularly in Germany, turnover
in the business segment of commercial online printing, at 84.0 m. euros, was
at exactly the same level as in the previous year. CEWE used the past
financial year to further expand the sales channels for commercial online
printing, to extend its product range and to strengthen the company through
the acquisition of online printing supplier LASERLINE. The EBIT generated by
the business segment developed positively, increasing over that of the
previous year by 2.8 %, to 1.64 m. euros (2016: 1.60 m. euros).
CEWE increases fourth-quarter turnover by 2.6 %
In the fourth quarter - typically the strongest quarter from a seasonal
point of view - CEWE increased its turnover by 2.6 % to 234.5 m. euros
(2016: 228.5 m. euros). The increase in EBIT to 46.1 m. euros corresponded
to as much as 7.2 % in comparison to the previous year (2016: 42.9 m.
euros). Turnover in the most important segment of photofinishing grew
particularly well, by 2.8 %, to 195.4 m. euros (2016: 190.0 m. euros). "Our
high-quality CEWE brand products remain attractive as Christmas gifts," says
Dr. Christian Friege. The other two business segments also contributed to
the positive quarterly growth: retailing increased its turnover in the
fourth quarter by 2.0 % to 15.9 m. euros (2016: 14.7 m. euros). In the
fourth quarter, commercial online printing achieved turnover in the amount
of 23.3 m. euros, thus exceeding the figure for the previous year by 0.7 %
(2016: 23.1 m. euros).
Takeovers promise further growth
In the past few months, CEWE has taken over the online printing company
LASERLINE as well as acquiring 80 % of the shares in leading French photo
app company "Cheerz". The company is using these two acquisitions to set a
growth impulse in commercial online printing and photofinishing, thus
expecting to generate sustained positive effects on the value of CEWE on the
whole.
2018 target corridor: sights set on growth in sales and earnings
CEWE Group turnover is to clearly exceed the 600-euro mark in 2018, and to
increase to 630-665 m. euros, with turnover in photofinishing remaining
stable or increasing slightly, supported by turnover from the acquisition of
Cheerz Group stocks. Retailing is to record consistent to slightly declining
development. Commercial online printing is also to rise on the majority of
markets, with the British market possibly remaining an exception. Added to
this is growth in turnover as a result of the acquisition of Laserline. In
spite of the negative contribution as a result of the acquisition of Cheerz
stocks still to be expected, Group EBIT is to be in a corridor of 40 m. to
54 m. euros, thus growing by up to 10 %. The EBT is to reach a figure in the
range of 47.5 to 53.5 m. euros, with after-tax earnings forecast at 33 to 37
m. euros.
Earnings by business segment
CEWE Einheit Q4-20- Q4-20- 2016 2017
16 17
(1) Photofinishing
Digital prints in m. units 768.0 771.7 2,176 2,128
Prints from films in m. units 11.5 9.9 56.0 47.0
Total prints in m. units 779.5 781.6 2,232 2,175
CEWE PHOTO BOOK in m. units 2.4 2.4 6.2 6.0
Turnover in EUR m 190.0 195.4 452.0 459.3
EBIT in EUR m 45.9 48.3 52.0 53.9
Sales revenue from property in in EUR m --- --- --- 0.5
Denmark
Additional expenditure for in EUR m --- -0.6 --- -0.6
employee shares
Restructuring costs in EUR m --- --- -0.2 ---
Proceeds from US internet in EUR m --- --- 0.4 ---
activity
Goodwill amortisation in EUR m -2.1 --- -3.0 ---
Disposal of the operation in in EUR m --- --- 0.3 ---
Graudenz, Poland
Basic equipment for business in EUR m --- --- 2.1 ---
partners
Purchase price allocation in EUR m -0.1 -0.1 -0.4 -0.4
effect
EBIT before one-off effects in EUR m 48.1 49.0 52.8 54.5
(2) Retail
Turnover in EUR m 14.7 15.0 54.9 53.0
EBIT in EUR m 1.0 0.7 0.6 0.3
(3) Commercial Online-Print
Turnover in EUR m 23.1 23.3 84.0 84.0
EBIT in EUR m 1.1 1.4 1.6 1.6
Purchase price allocation in EUR m -0.4 -0.1 -1.7 -0.6
effect
EBIT before one-off effects in EUR m 1.5 1.6 3.3 2.3
(3) Other
Turnover in EUR m 0.6 0.8 2.2 3.0
EBIT in EUR m -5.0 -4.3 -7.2 -6.6
Goodwill amortisation in EUR m -3.9 --- -3.9 ---
Impairment write-down in EUR m --- -3.5 --- -3.5
Purchase price allocation in EUR m -0.1 -0.1 -0.5 -0.5
effect
EBIT before one-off effects in EUR m -1.0 -0.7 -2.8 -2.6
CEWE Group Q4-20- Q4-20- 2016 2017
16 17
Turnover in EUR m 228.5 234.5 593.1 599.4
EBIT in EUR m 42.9 46.1 47.0 49.2
Total one-off effects in EUR -6.7 -4.6 -6.9 -5.3
millions
EBIT before one-off effects in EUR m 49.6 50.7 53.9 54.5
EBT in EUR m 41.7 45.5 46.2 48.9
Earnings after tax in EUR m 25.5 31.4 30.4 33.6
Rounding errors may arise. Percentage deviations have all been calculated at
the exact values.
Notes to the "Earnings by Business Segment" chart
(1) Photofinishing: Production and sale of photo products such as CEWE PHOTO
BOOKS, 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-Print: Production and sale of the commercial print
products of the online printing portals, e.g. CEWE-PRINT.de, SAXOPRINT,
viaprinto and LASERLINE
Full year of 2017 in comparison to the previous year and target, and the
targets for 2018
CEWE Konzern Unit 2016 2017 2017 2018
actual target actual target
Prints in billion 2.18 2.08-2.18 2.13 2.12-2.14
units
CEWE PHOTOBOOK in m. units 6.2 6.00-6.25 6.02 6.08-6.14
Investments in EUR m. 50.4 55 44.6* 55
Turnover in EUR m. 593.1 585-615 599.4 630-665
EBIT in EUR m. 47.0 45-51 49.2 48-54
EBT in EUR m. 46.2 44.5-50.5 48.9 47.5-53.5
Earnings after in EUR m. 30.4 30-34 33.6 33-37
tax
Earnings per EUR/share 4.25 4.23-4.81 4.70 4.55-5.13
share
* EUR 44.6 million in operational investments including building expansion
in Oldenburg,
plus acquisition of property "Saxopark" in Dresden (EUR 27.6 million)
Rounding errors may arise. Percentage deviations have all been calculated at
the exact values.
Should you have any queries, please contact:
CEWE Stiftung & Co. KGaA, Axel Weber (Investor Relations)
Tel.: 0441 / 404 - 2288, Fax: 0441 / 404 - 421, Email: [email protected]
Internet: cewe-fotobuch.de , cewe-photobook.com , deindesign.de , cewe.de ,
cewe-print.de , viaprinto.de , saxoprint.de , laserline.de
The CEWE apps are all available in the app stores: CEWE PHOTO WORLD, CEWE
POSTCARD, CEWE PURE 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:
(insofar as already scheduled)
19.04.2018 2018 Bankhaus Lampe Deutschland Conference
14.05.2018 Publication of the 2018 Q1 interim report
14.05.2018 Press release on the 2018 Q1 interim report
06.06.2018 2018 Annual General Meeting
09.08.2018 Publication of the 2018 Q2 interim report
09.08.2018 Press release on the 2018 Q2 interim report
24.09.2018 2018 Berenberg & Goldman Sachs German Corporate Conference
25.09.2018 2018 Baader Investment Conference
13.11.2018 Publication of the 2018 Q3
13.11.2018 Press release on the 2018 Q3 interim report
26.11.2018 2018 German Equity Forum
About CEWE: The innovative photo and online print service company, with
twelve highly-technical production operations and a staff of around 3,600
employees in 24 European countries, is both market and technological leader.
In 2017 CEWE delivered around 2.2 billion prints, 6.0 million CEWE PHOTO
BOOK copies and numerous photo gift articles to more than 20,000 retail
partners to generate consolidated turnover of 599.4 million euros. The
company is continuously generating new impulses in the photographic industry
with innovations for people who enjoy taking photos. CEWE is a leading
company when it comes to climate protection. The production of alle CEWE
brand products is completely climate-neutral. In the new business segment of
"Commercial online printing", printed material for businesses is marketed
through the sales platforms of CEWE-PRINT.de, SAXOPRINT, viaprinto and
LASERLINE. Founded by Senator h. c. Heinz Neumüller in 1961, CEWE has been
listed on the stock exchange since 1993 and is currently an SDAX member.
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22.03.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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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: [email protected]
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, Tradegate Exchange
End of News DGAP News Service
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667165 22.03.2018
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