Online business bring success to CEWE in 2020
CEWE Stiftung & Co. KGaA reports, for the 2020 financial year, the core photofinishing business increased and more than offset the effects of the pandemic on the business areas of retail and commercial online printing. As part of the annual press and analyst conference, CEWE presented the company figures for 2020: Sales rose to EUR 727.3 million (2019: EUR 720.4 million), and the operating result (EBIT) improved by more than 40 % to EUR 79.7 million (2019: EUR 56.8 million). As a result of these positive results, the Board of Management and the Supervisory Board proposed a dividend increase of 30 euros per share for the 12 year in a row.
“We are particularly pleased with the excellent development in our core business area of photofinishing. In 2020, CEWE once again made many people happy with a personal and individual photo product. Our customer focus, our innovative strength and our strong online business are the key to this success,” said Dr. Christian Friege, CEO of CEWE Stiftung & Co. KGaA.
The core photofinishing business was again strong. After an already impressive 2019, sales increased by 8.9% to 618.8 million euros (2019: 568.0 million euros), due to outstanding Christmas business. The traditionally decisive Q4 delivered photofinishing sales of EUR 283.0 million, an increase of 12.7% compared to the previous year (2019: EUR 251.1 million). In addition, the company said the cost-cutting program initiated at the start of the pandemic had a positive effect on profitability. As a result, sales per photo of 31.78 euro cents were above 30 euro cents for the first time (2019: 28.14 euro cents).
Online commercial printing struggled
The commercial online printing division was adversely affected by the pandemic, the company said. In 2020, sales in the B2B printing business fell by 34.3% to EUR 67.8 million (2019: EUR 103.2 million), but thanks to strict and effective cost management, CEWE said it was able to keep the effects of the decline in sales on earnings under control. EBIT in the Commercial Online Printing division was EUR -3.7 million in 2020 (2019: EUR -7.7 million). In the previous year, restructuring provisions for the now successfully completed merger of the LASERLINE production with the SAXOPRINT printing site totaled EUR -5.0 million.
Retail affected by closings
In 2020, CEWE retail achieved sales of EUR 34.1 million (2019: EUR 43.7 million). “The pandemic is accelerating our already ongoing alignment of our retail trade towards the photofinishing and online business,” explains Friege. As part of this focus, CEWE is downsizing its branch structure from around 140 to a good 100 stores.
Outlook for 2021
The company projects consolidated sales should reach a value in the range of 710 to 770 million euros in 2021. Group EBIT is expected to be in the corridor of EUR 72 to 84 million in 2021, EBT between EUR 70 and 82 million and earnings after tax between EUR 48 and 56 million, the company said.