CEWE confirms annual forecast with strong second-quarter sales

CEWE Stiftung & Co. KGaA reports second-quarter group sales grew by +3.1% to EUR 156.0 million, compared to EUR 151.3 million, while group EBIT reached EUR -4.0 million in Q2, which is always negative due to seasonal factors (Q2 2024: EUR -2.9 million). The decline in earnings compared with the same quarter of the previous year is exclusively attributable to Commercial Online-Print, which reduced its turnover and earnings primarily in the weak German market for business printing. Group turnover in the first half of 2025 rose by +4.0% to EUR 329.4 million thanks to the good second quarter (H1 2024: EUR 316.8 million), while Group EBIT for the first half of the year was fully in line with the expected range for achieving the annual target at EUR 2.1 million (Group EBIT H1 2024: EUR 5.1 million).

“Despite challenging macroeconomic conditions, we are continuing to grow strongly in our core business of photofinishing: With customer demands always at the heart of everything we do, we are innovative, develop sustainable products and technologies, and continuously improve the efficiency of our production facilities and the position of our strong brands in Europe,” emphasizes Thomas Mehls, CEO of CEWE Stiftung & Co. KGaA. “We are therefore very proud to have once again been honored with the “Best Managed Companies” award by UBS, FAZ, Deloitte, and BDI. The award is a recognition of the outstanding team performance of all CEWE employees.”

With the development of the first six months, the company is on track to achieve its annual targets: CEWE management forecasts group turnover in a range of EUR 835 to 865 million and group EBIT of EUR 84 to 92 million for the full year 2025.

Photofinishing business segment continues to grow and improves earnings

With Q2 turnover growth of +3.9% to EUR 127.3 million (Q2 2024: EUR 122.6 million), photofinishing turnover rose by +4.6% to EUR 272.2 million in the first half of 2025 (H1 2024: EUR 260.2 million). The total number of photos sold grew by +3.0% to 489 million units in the second quarter (Q2 2024: 474 million), while sales figures for CEWE PHOTOBOOK rose by +0.8% to 1.140 million copies (Q2 2024: 1.131 million copies). The trend towards higher-quality photo books even increased turnover with CEWE PHOTOBOOK by +5.2%. EBIT for Photofinishing improved in the second quarter to EUR – 2.9 million (Q2 2024: EUR -3.1 million) – despite an increase in personnel costs due to one-off payments resulting from the current tariff agreement, salary adjustments, and necessary new hires. Due to the high fixed costs, Photofinishing EBIT is traditionally always negative in the second quarter, when demand is seasonally weaker. Together with the stronger winter quarter of Q1, the Photofinishing business segment thus achieved an EBIT of EUR 2.7 million in the first half of 2025 (H1 2024: EUR 4.4 million).

Weak market, especially in Germany, weighs on Commercial Online-Print in Q2

Commercial Online-Print (COP) reported turnover of EUR 20.5 million in the second quarter, down 4.3% in a weak overall market, particularly in Germany (Q2 2024: EUR 21.4 million) and thus achieved Q2 EBIT of EUR -0.6 million – a decline of (rounded) EUR 1.5 million compared to the same quarter of the previous year (EBIT Q2 2024: EUR 0.8 million). This decline in earnings was primarily due to strategic investments in international markets (the Netherlands, Belgium, France, Spain, and the UK) and the generally enforceable price level in a highly price-competitive environment. In addition, the expansion of SAXOPRINT’s production site in Dresden to enable “hybrid production” is currently contributing to a slightly higher cost base. To further increase efficiency, the current offset production is being supplemented by digital printing capacities. With a slight decline in half-year revenue of 0.6% to EUR 42.4 million (H1 2024: EUR 42.7 million), Commercial Online-Print achieved a balanced EBIT of EUR 0.0 million in the first six months of 2025 (H1 2024: EUR 1.5 million).

CEWE Retail business remains well-positioned with a clear increase in turnover

The retail business with photo hardware (cameras, lenses, photo accessories) reported in the Retail segment even achieved a clear increase in turnover of +10.9% to EUR 8.1 million in the second quarter (Q2 2024: EUR 7.3 million). The retail business in Norway, which focuses on premium products, developed particularly well. Overall, CEWE continues to deliberately refrain from less profitable retail business and is focusing on the Photofinishing business (reported in the Photofinishing segment). In the first half of the year, the retail business thus generated turnover of EUR 14.8 million, an increase of 6.2% (H1 2024: EUR 14.0 million). With Q2 EBIT of EUR 0.0 million (Q2 2024: EUR -0.1 million), the division achieved an EBIT of EUR -0.2 million in the first half of the year, which is typically still negative due to seasonal factors (H1 2024: EUR -0.2 million).

Traditionally solid equity ratio rises to 66.7%, ROCE at a strong 17.1%

The equity ratio rose slightly once again to 66.7% after already reaching a very solid level in the previous year (June 30, 2024: 66.6%), underscoring the CEWE Group’s continued extremely stable position. The return on capital employed (ROCE) remained at a strong level of 17.1% at the end of June 2025 (ROCE June 30, 2024: 19.1%).

Outlook for 2025 confirmed with Q2/H1 results

CEWE’s management sees the results for the first half of the year as confirmation of its targets and confirms its outlook for 2025: Group turnover is expected to increase by up to +4% in 2025 and is planned to be in the range of EUR 835 to 865 million. Group EBIT is expected to be in the range of €84 to €92 million in 2025, EBT between €83.5 and €91.5 million, and net income after taxes between €58 and €63 million.

An overview of results for H1 and Q1 2025 

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

* Previous year’s turnover and EBIT adjusted by €-0.163 million in Q2 2024 and €-0.341 million in H1 2024 due to the correction of a major customer invoice in COP; effect for the full year 2024 already considered in Q4 2024

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

(4) Other: Structural and corporate costs, as well as the results from real estate ownership and investments, are shown in the Other business segment.