CEWE reports second-quarter sales up 8.2%
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CEWE Stiftung & Co. KGaA remains on track in the second quarter after the strong start of the year in Q1 with group turnover growing by +8.2% to 151.5 million euros (Q2 2023: 140.0 million euros), Group EBIT improves by +1.4 million euros or +34.4% to -2.7 million euros (Q2 2023: -4.1 million euros) in Q2, which is traditionally negative due to seasonal factors. The earnings growth was mainly driven by the Photofinishing business segment (plus 3.4 million euros in EBIT) and Commercial Online-Print (plus 1.0 million euros in EBIT).
“Our strategic focus continues to pay off: With innovative products and technologies, we inspire customers to create and share photo products of the highest quality. Despite challenging macroeconomic conditions, we are succeeding in constantly developing and expanding our business. This is a team effort by the entire CEWE Group. I would like to express my sincere thanks to all our employees,” emphasizes Yvonne Rostock, Chairwoman of the Board of Management of CEWE Stiftung & Co. KGaA. “The improvement in earnings we have achieved has put us in a very good starting position for the second half of the year, with the fourth quarter being particularly important for us. We are now preparing for our seasonal peak in the upcoming Christmas business.”
With the strong development of the first six months, the company is on course to achieve its annual targets in a range of up to 820 million euros and Group EBIT of up to 87 million euros for the full year 2024.
Photofinishing business segment continues to grow and improve earnings
With Q2 sales growth of +11.0% to 122.6 million euros (Q2 2023: 110.4 million euros), photofinishing sales in the first half of 2024 rose significantly by +10.0% to 260.2 million euros (H1 2023: 236.5 million euros). The total number of photos sold grew by +4.3% to 460 million units in the second quarter (Q2 2023: 441 million units), while sales figures for the CEWE PHOTOBOOK rose by +5.0% to 1.131 million copies (Q2 2023: 1.077 million copies). The photofinishing EBIT improved by + 1.0 million euros to -3.1 million euros in the second quarter (Q2 2023: -4.1 million euros). Due to the high fixed cost remanence, the photofinishing EBIT is traditionally negative in Q2, which is weaker in terms of demand due to seasonal factors. In the first half of 2024, the photofinishing business segment made the largest contribution to Group EBIT with 4.4 million euros: An increase of +3.4 million euros compared to the first half of the previous year (H1 2023: 1.1 million euros).
Commercial Online-Print with sustainably improved results
In the second quarter, Commercial Online Print (COP) recorded only a slight decline in revenue of -1.1% to EUR 21.6 million (Q2 2023: EUR 21.8 million) in a printing market that is currently in decline overall. In the second quarter, COP once again achieved a significant improvement in EBIT of EUR +0.6 million to EUR 1.0 million (Q2 2023: EUR 0.4 million) on the basis of the continuously optimized cost structure. With half-year revenue of EUR 43.0 million (H1 2023: EUR 44.4 million), Commercial Online Print improved its EBIT by EUR +1.0 million to EUR 1.8 million in the first six months of 2024 (H1 2023: EUR 0.8 million). This successful development in a difficult market shows how COP at CEWE has achieved a first-class position for its customers thanks to cost efficiency in production and the “best price guarantee” (which is possible as a result).
CEWE retail trade remains flat
With a Q2 turnover of 7.3 million euros (Q2 2023: 7.8 million euros), the retail business with photo hardware (cameras, lenses, photo accessories) reported in the Retail segment achieved a 4.2% reduction in turnover to 14.0 million euros in the first half of 2024 (H1 2023: 14.6 million euros). CEWE continues to deliberately exclude lower-margin retail business in the photo hardware segment and focuses on business with photofinishing products (reported in the Photofinishing segment). With a Q2 EBIT of -0.1 million euros (Q2 2023: -0.1 million euros), the business segment thus improved its EBIT by +0.1 million euros to -0.2 million euros (H1 2023: -0.3 million euros) in the first half of the year, which is typically still negative due to seasonal factors.
Overview Results H1 and Q2 2024
| CEWE Business Segments | Unit | H1 2023 | H1 2024 | Q2 2023 | Q2 2024 |
| (1) Photofinishing | |||||
| Photos | m. photos | 957.0 | 979.0 | 440.8 | 459.9 |
| CEWE PHOTOBUCH | m. units | 2.333 | 2.368 | 1.077 | 1.131 |
| Turnover | EUR m. | 236.5 | 260.2 | 110.4 | 122.6 |
| EBIT | EUR m. | 1.1 | 4.4 | -4.1 | -3.1 |
| Purchase price allocation effects | EUR m. | -1.6 | -1.5 | -0.8 | -0.8 |
| Special effect software licenses | EUR m. | -0.5 | – | -0.5 | – |
| EBIT before special effects | EUR m. | 3.2 | 5.9 | -2.8 | -2.4 |
| (2) Retail | |||||
| Turnover | EUR m. | 14.6 | 14.0 | 7.8 | 7.3 |
| EBIT | EUR m. | -0.3 | -0.2 | -0.1 | -0.1 |
| (3) Commercial Online-Print | |||||
| Turnover | EUR m. | 44.4 | 43.0 | 21.8 | 21.6 |
| EBIT | EUR m. | 0.8 | 1.8 | 0.4 | 1.0 |
| Purchase price allocation effects | EUR m. | -0.1 | -0.1 | 0.0 | 0.0 |
| EBIT before special effects | EUR m. | 0.9 | 1.9 | 0.4 | 1.0 |
| (4) Other (without futalis) | |||||
| Turnover | EUR m. | 0.0 | 0.0 | 0.0 | 0.0 |
| EBIT | EUR m. | -0.5 | -0.7 | -0.3 | -0.5 |
| CEWE Group | Unit | H1 2023 | H1 2024 | Q2 2023 | Q2 2024 |
| Turnover | EUR m. | 295.4 | 317.1 | 140.0 | 151.5 |
| EBIT | EUR m. | 1.1 | 5.4 | -4.1 | -2.7 |
| Total special effects | EUR m. | -2.2 | -1.6 | -1.3 | -0.8 |
| EBIT before special effects | EUR m. | 3.3 | 7.0 | -2.8 | -1.9 |
| EBT | EUR m. | 0.7 | 6.3 | -4.3 | -2.4 |
Rounding differences may occur. Exact values have always been used for percentage deviation calculations.
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) Retail: Trading in photo hardware, such as cameras and lenses, in Norway, Sweden, Poland, the Czech Republic and Slovakia
(3) Commercial Online-Print: Production and sale of commercial print products in the online printing portals of SAXOPRINT, viaprinto and LASERLINE