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CEWE STIFTUNG & CO. KGAA (FRA:CWC) CEWE: Profit in First Quarter

Directive transparence : information réglementée

12/05/2016 07:00
DGAP-News: CEWE Stiftung & Co. KGaA / Key word(s): Quarterly / Interim Statement CEWE: Profit in First Quarter 12.05.2016 / 07:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- CEWE: Profit in First Quarter - Consolidated turnover rises by 11.6 % to 119.2 million euros - Robust growth in photofinishing and commercial online printing - EBIT positive in the first quarter for the first time in the history of the company - ROCE reaches a good 19.2 % (2015 Q1: 16.9 %). Oldenburg, 12 May 2016. CEWE Stiftung & Co. KGaA (SDAX, ISIN: DE 0005403901) generated positive consolidated earnings for the first time in the history of the company in the hitherto loss-making first quarter: With turnover increasing by 11.6 % to 119.2 million euros, EBIT improved from -3.5 million euros to +0.9 million euros. In the quarter of the report, operative EBIT increased from -2.5 million euros in the previous year to +0.5 million euros before non-recurring effects (in the previous year, one million euros in restructuring costs was still incurred, and in the current first quarter the disposal of a small US internet activity generated a one- off yield of 0.4 million euros). Earnings after tax reached 0.6 million euros (2015 Q1: -3.6 million euros), with the business segments of photofinishing (+13.2 %) and commercial online printing (+14.3 %) reporting considerable increases in turnover. Against the background of the strong first quarter, CEWE is confirming its forecast for the 2016 business year, in which the company is targeting EBIT in the range of 38 million to 44 million euros (2015: 36.8 million euros). CEO Dr. Rolf Hollander: "We are now benefiting considerably from the strength of our brand, which has reached a supported brand awareness of 70 % in Germany. Over and above this, our rolling 12-month-EBIT of 41.2 million euros is a clear confirmation of our annual targets." Dr. Hollander believes that the development of earnings in the first quarter is also the result of the shift in demand that has been ongoing for many years now: "The summer season used to be the driver of annual profits in times of analogue photography, but now the second and third quarters are increasingly relinquishing this role. The fourth quarter in particular, with its Christmas business, and also the first quarter are taking on this role more and more - as results for the first quarter of 2016 show." Photofinishing grows by 13.2 % to 85.5 million euros and achieves positive earnings In the photofinishing segment, CEWE achieved a rise in turnover of 13.2 % in the first quarter, generating turnover of 85.5 million euros. At the same time the increase in sales and an increased proportion of added-value products improved the quarterly result: with its operative EBIT at 0.9 million euros (EBIT is shown at 1.3 million euros on the inclusion of the disposal of a small US internet activity), photofinishing reported positive earnings in the first quarter for the first time in the history of the company. "The old rule stating that 'photofinishing in the first quarter is like selling ice cream in winter' no longer applies," says Dr. Hollander. In addition to ongoing growth for the CEWE PHOTO BOOK (+10.2 % to 1.278 million books), the CEWE brands of CEWE CALENDAR, CEWE CARDS and CEWE WALL ART also contributed to the increase in turnover and the increase in turnover per photo of 9.0?%, from 16.25 eurocents in the first quarter of 2015 to 17.72 eurocents in the first quarter of 2016. In the first quarter of 2016, 98?% of all the photos were digital and 75?% of all the digital photos were ordered in the internet. Commercial online printing grows by 14.3 % and achieves positive EBIT for the first time Commercial online printing grew faster than in the same quarter of the previous year (+9.5 %) and faster than in the previous year as a whole (+ 10.4 %), increasing turnover in the first quarter of 2016 by 14.3 % to 20.4 million euros. At the same time the business segment achieved positive EBIT for the first time, after -1.3 million euros in the first quarter of 2015. The growth segment is thus confirming its aim of achieving positive earnings in the full year of 2016 as well. Retailing earnings again improved The repositioning of retail business is taking effect: Currency-adjusted turnover increased again slightly in the first quarter of 2016, by 0.4 % to 13.5 million euros. However, due to negative currency effects, particularly in Norway, reported retail turnover decreased by altogether 4.4 %, to 12.8 million euros. EBIT for the retail business segment improved by 0.7 million euros to -0.4 million euros (2015 Q1: -1.1 million euros). Adjusted by the restructuring costs incurred again in the previous year in the amount of 0.6 million euros, operative EBIT increased by a rounded off figure of 0.2 million euros. ROCE increases to a good 19.2 % The capital ratio rose to 61.7 % as at 31 March 2016 (31 March 2015: 60.7 %). At the same time the return on capital employed was improved: although the average amount of capital employed was raised to 215.0 million euros (2015 Q1: 196,9 million euros), the ROCE increased from 16.9 % to 19.2 % as the 12-month EBIT increased from 33.2 million to 41.2 million euros. "We are in a position to develop our growth areas and to offer our shareholders a steadily growing dividend thanks to our sound financial position and our considerable earning power," explains CFO Dr. Olaf Holzkämper. The Supervisory Board and the Board of Management will propose another dividend increase - for the seventh time in succession - to a current 1.60 euros per share at the Annual General Meeting on 1 June 2016. Reduced value added tax on photo books maintained in 2016 The original increase in value added tax on photo books in Germany, from 7 % to 19 % and valid since 25 December 2015, has now been cushioned in a "non-objection regulation" until 31 December 2016. This was announced by the German Federal Ministry of Finance in April. Should the increase in turnover tax be maintained in 2017, current estimations show that the influence of turnover tax on CEWE EBIT ranges from 0 euros to not more than a high single-digit million euro amount. CEWE is still of the opinion that the possibility of the increase in turnover tax being completely revoked, also for the period after 2017, cannot be ruled out. 2016 targets confirmed: earning power and dividends to continue to increase CEWE is confirming its annual targets on the basis of the positive development in the first quarter and the expectation of a further rise in the seasonal peak in the fourth quarter. In 2016, consolidated turnover in all the business segments is to increase slightly to 555 to 575 million euros after 554.2 million euros in 2015. In this case turnover in photofinishing is to remain approximately stable or increase slightly, the business segment of retailing is to show turnover to be about constant and commercial online printing to continue to increase its turnover. After 77.8 million euros in 2015 (+ 10.4 %), the management believes that commercial online printing can achieve turnover of around 86 million euros in 2016. At the same time CEWE is confirming its target of generating a positive contribution to earnings in 2016 with online printing. The Group EBIT is to be in a corridor of 38 to 44 million euros, EBT is to be in the range of 37 to 43 million euros, and after tax earnings between 25 and 29 million euros. This is equivalent to an increase in the operative EBIT target corridor of around six million euros in comparison to the targets for 2015. At the same time the management is confirming its aim of raising dividends in the coming years as well. Earnings by business segment in the first quarter of 2016

CEWE:                Unit        2015 Q1  2016 Q1  Diff. %     Diff. abs.
(1) Photofinishing
Digital prints       in m.       450.5    471.6    4.7 %       21.0
                     units
Prints from films    in m.       14.1     10.8     -23.4 %     -3.3
                     units
Total prints         in m.       464.6    482.4    3.8 %       17.8
                     units
CEWE PHOTO BOOK      th. books   1,159.7  1,277.7  10.2 %      118.0
Turnover             in EUR m.   75.5     85.5     13.2 %      10.0
EBIT                 in EUR m.   -0.8     1.3      ---         2.1
Restructuring costs  in EUR m.   -0.4     0.0      ---         0.4
Proceeds from US     in EUR m.   0.0      0.4      ---         0.4
internet activity
EBIT before one-     in EUR m.   -0.4     0.9      ---         1.3
time effects
(2) Retailing
Turnover             in EUR m.   13.4     12.8     -4.4 %      -0.6
EBIT                 in EUR m.   -1.1     -0.4     65.2 %      0.7
Restructuring costs  in EUR m.   -0.6     0.0      ---         0.6
EBIT before one-     in EUR m.   -0.6     -0.4     31.0 %      0.2
time effects
(3) Commercial
online printing
Turnover             in EUR m.   17.9     20.4     14.3 %      2.5
EBIT                 in EUR m.   -1.3     0.5      ---         1.8
CEWE Group
Turnover             in EUR m.   106.8    119.2    11.6 %      12.4
EBIT                 in EUR m.   -3.5     0.9      ---         4.4
One-time effects     in EUR m.   -1.0     0.4      ---         1.4
EBIT before one-     in EUR m.   -2.5     0.5      ---         3.0
time effects
EBT                  in EUR m.   -3.7     0.8      ---         4.5
Earnings after tax   in EUR m.   -3.6     0.6      ---         4.2


Notes to the "Earnings by Business Segment" chart (1) Photofinishing: Production and sale of photo products such as the CEWE PHOTO BOOK, 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 printing: Production and sale of the commercial print products of the online printing portals, e.g. CEWE-PRINT.de, Saxoprint and Viaprinto 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: IR@cewe.de Internet: cewe-photobook.com , cewe.de , cewe-fotobuch.de , cewe-print.de , viaprinto.de , saxoprint.de The CEWE apps are all available in the app stores: CEWE PHOTO WORLD, CEWE POSTCARD, CEWE SERVICE 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: 1 June 2016 2016 Annual General Meeting, Weser-Ems-Halle, Oldenburg 11 August 2016 Publication of the mid-year report as at Q2 2016 19-21 September 2016 Berenberg & Goldman Sachs German Corporate Conference 20-22 September 2016 Baader Investment Conference, Munich 10 November 2016 Publication of the interim report as at Q3 2016 21-22 November 2016 German Equity Forum, Frankfurt About CEWE: The innovative photo and online print service company CEWE, with twelve highly-technical production operations and a staff of around 3,400 employees in 24 European countries, is both market and technological leader. In 2015 CEWE delivered around 2.2 billion prints, 6.0 million copies of the CEWE PHOTO BOOK and photo gift articles to around 25,000 retail partners to generate consolidated turnover of 554.2 million euros. CEWE is continuously generating new impulses in the photographic industry with innovations for people who enjoy taking photos. In the new business segment of commercial online printing, printed material for businesses is marketed through the sales platforms CEWE-PRINT.de, Saxoprint und Viaprinto. Founded in 1961 by Senator h. c. Heinz Neumüller, CEWE was taken to the stock exchange by Hubert Rothärmel in 1993. CEWE Stiftung & Co. KGaA is listed on the SDAX. --------------------------------------------------------------------------- 12.05.2016 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- 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: IR@cewe.de 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 End of News DGAP News Service --------------------------------------------------------------------------- 462765 12.05.2016