DGAP-News: CEWE Stiftung & Co. KGaA / Key word(s): Final Results
CEWE wants to see a renewed rise in earning power
25.03.2015 / 07:00
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CEWE wants to see a renewed rise in earning power
- 2014 profit targets all reached
- ROCE increases to 16.9 %
- Dividend to increase for the sixth time in succession
- CEWE ends 2014 free of debts and with a capital ratio of 51.1%
- Operative earnings targets for 2015 raised by two million euros over
those for 2014
- CEWE distinguished by Superbrand Germany
Oldenburg/Frankfurt am Main, 25 March 2015. After the successful business
year of 2014 in which CEWE Stiftung & Co. KGaA (SDAX, ISIN: DE 0005403901)
achieved all their profit targets, the Board of Management and the
Supervisory Board will propose another dividend increase, of 5 eurocents to
1.55 euros a share - the sixth dividend increase in succession. CEWE has
not only paid out a dividend that increases year-by-year; the company has
in the meantime also repaid all its debts: After reporting a net financial
debt of 16.3 million euros at the end of 2013, the company had net assets
of 23.5 million euros at the end of 2014. CEWE is thus debt-free and
reports a sound capital ratio of 51.1 %. "CEWE is ideally positioned with
its first-class service, its strong brand - which has just been
distinguished as an outstanding brand with the Superbrand Award - and with
its excellent image. As a debt-free company with a sound capital ratio and
a strong business model in terms of its income and cash flow, we are well
positioned to generate more growth, independently of the financing
environment. Not least of all, we were also in a position to enable our
shareholders to participate in the positive development of the company with
a rise in the dividend," says Dr.Rolf Hollander, Chairman of the Board of
Management of CEWE Stiftung & Co. KGaA. CEWE is aiming for more
earnings-oriented growth in 2015: The Board of Management expects income to
exceed the targets for 2014 by around 2 million euros at all operative
earnings levels. The high earnings power of photofinishing business is to
continue to contribute to the expansion of high-potential commercial online
printing. This was announced by CEWE during the Annual Report Press
Conference held today in Frankfurt am Main. In 2014 turnover amounted to
523.8 million euros (currency-adjusted: 527.5 million euros; previous year
of 2013: 536.2 million euros), and operative earnings (EBIT) improved
considerably, from 28.9 million to 32.6 million euros. Earnings before tax
(EBT) increased from 27.1 million euros in 2013 to 31.5 million in 2014. In
the previous year, after-tax earnings benefited considerably from positive
non-recurring effects resulting from the change in the legal form of the
company (+ 3.3 million euros). For this reason after-tax earnings in 2014,
at 21.4 million euros, were 0.9 million euros lower than in the previous
year (2013: 22.3 million euros). Against the background of a return to a
normal tax rate of 32.1 % for the Group (2013: 17.7 %), earnings per share
reached 3.07 euros in the year of the report (2013: 3.39 euros). The return
on capital employed improved considerably to reach 16.9 % (2013: 15.0 %).
The free cash flow was more than doubled, to 28.1 million euros (2013: 13.1
million euros).
CEWE increases fourth-quarter EBIT by 11.0 per cent
The trend towards a seasonal shift continued into the fourth quarter of
2014: for years now, CEWE has been generating a growing share of its
turnover and earnings in the Christmas quarter. While operative earnings
(EBIT) for the first three quarters were still at -4.7 million euros, the
final quarter of the year contributed sales of 194.8 million euros, around
2 % higher thanks to the strong Christmas business. After-tax earnings in
the fourth quarter increased by as much as 11.0 %, to 37.3 million euros
(Q4 2013: 33.6 million euros). CEWE thus generated around 37.2 % of its
total annual turnover and far more than 114 % of its income in the vital
fourth quarter. It was mainly the strong demand for the CEWE PHOTO BOOK,
and for the CEWE brand products such as CEWE CALENDARS, CEWE CARDS and CEWE
WALL PICTURES, which contributed to the positive development in the fourth
quarter as well: "Photo products are highly popular as gifts because they
are always individual, personal and self-made. At CEWE, photo gifts have
resulted in increasing sales in the Christmas season," Dr. Hollander says.
The turnover per photo increased by 7.5 %, from 19.02 eurocents in the same
quarter of the previous year to 20.44 eurocents. A rising share of the
prints came from mobile devices such as smartphones and tablets, with the
share of orders placed with the numerous CEWE apps for these mobile devices
also continuing to rise.
Photofinishing and commercial online printing develop strongly
The biggest CEWE business division grew even more than expected in the 2014
business year: with turnover at 386.0 million euros (+2.8 %) and EBIT at
38.4 million euros (+7.2 %), photofinishing accounts for 73.7 % of Group
turnover and for 117.8 % of Group EBIT. In contrast, CEWE reduced its
retail business by 33.4 % to turnover in the amount of 67.3million euros by
abstaining from the low-margin wholesale line of business. Essential
adjustment measures in Poland resulted in negative EBIT of -2.9 million
euros in this segment. In contrast, commercial online printing grew by 17.8
% to 70.5 million euros, improving EBIT by 4.1million euros to - 2.9
million euros, in spite of the considerable amount of initial funding.
2015 targets: earning power, investments and dividends to continue to
increase
"We wish to enhance our earning power in 2015 as well, even though we are
making advance payments in our growth sector of commercial online
printing," Dr.Hollander emphasised. In 2015, the Group turnover for all the
business segments is to lie in the range of 515 million to 535 million
euros (2014: 523.8 million euros). While the Board of Management expects
sales to be just about stable in the high-margin sector of photofinishing,
the potential decline in retail business turnover is to be more than
offset if possible by an expected rise in turnover generated with
commercial online printing. After 70.5 million euros in 2014 (17.8 %), the
management believes that an increase in online printing turnover to more
than 80 million euros should be possible in 2015. CEWE continues to
maintain its target of generating a positive contribution to income in this
new business segment from 2016 on. The target corridors for profits in
comparison to 2014 are all being set at an increase of around two million
euros for 2015: EBIT is to be in a corridor of 32 million to 38 million
euros in 2015, EBT is to be in the range of 30 million to 36 million euros,
and after tax earnings between 20 million and 24 million euros. Earnings
per share are to be in the range of 2.87 to 3.45 euros. CEWE is also
planning to increase investments to approx. 46 million euros (2014: 35.4
million euros). This investment figure includes a non-recurring special
effect due to a building extension. At the same time the management is
confirming its aim of consistently raising dividends in the coming years.
CEWE distinguished by Superbrand Germany
CEWE is among the excellent brands to have received a Superbrand Germany
award. The independent international organisation awards a Superbrand mark
of quality in honouring outstanding brands in Germany every year. The jury
assessed criteria such as brand value, image, brand acceptance, consistency
and customer loyalty, thus selecting the 52 Superbrands Germany for
2014/2015 from more than 1,250 brands.
Earnings by business segment:
<pre>
CEWE: Unit Q4 2013 Q4 2014 2013 2014
(1) Photofinishing
Digital prints in m. units 759 746 2.25 2.20
Prints from films in m. units 22 18 0.11 0.09
Total prints in m. units 781 763 2.37 2.29
CEWE PHOTO BOOK th. books 2.2 2.3 5.8 5.9
Turnover in EUR m. 148.5 156.0 375.4 386.0
EBIT in EUR m. 36.0 39.0 35.8 38.4
EBIT margin % 24.3 25.2 9.5 10.0
(2) Retailing
Turnover in EUR m. 24.5 18.3 101.0 67.3
EBIT in EUR m. 1.3 -1.5 0.1 -2.9
EBIT margin % 5.3 -8.0 0.1 -4.4
(3) Commercial Online-Print
Turnover in EUR m. 18.2 20.5 59.8 70.5
EBIT in EUR m. -3.7 -0.3 -7.0 -2.9
EBIT margin % -20.5 -1.3 -11.7 -4.1
CEWE Group
Turnover in EUR m. 191.2 194.8 536.2 523.81
EBIT in EUR m. 33.6 37.3 28.9 32.6
EBIT margin % 17.6 19.1 5.4 6.2
EBT in EUR m. 32.9 37.1 27.1 31.5
</pre>
1: Adjusted by currency effects: 527.5 million euros
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-Print: Production and sale of commercial print
products in the online printing portals, e.g. CEWE-PRINT.de, saxoprint.de
and viaprinto.de
Overall year of 2014 in a comparison with the previous year and with
targets, and the targets for 2015
<pre>
CEWE Group Unit 2013 2014 2014 2015
target actual target
Digital prints in billion 2.25 2.15 - 2.20 2.10 -
units 2.20 2.15
Prints from films in billion 0.11 0.075 - 0.09 0.065 -
units 0.085 0.070
Total prints in billion 2.37 2.23 - 2.29 2.17 -
units 2.29 2.22
CEWE PHOTO BOOK in m. units 5.8 5.8 - 5.9 5.9 6.0 - 6.1
Turnover in EUR m. 536.2 525 - 540 523.81 515 - 535
EBIT before other in EUR m. 29.7 30 - 36 33.5
taxes
EBIT in EUR m. 28.9 32.6 32 - 38
EBIT margin % 5.4 6.2
EBT before other in EUR m. 27.8 28 - 34 32.3
taxes
EBT in EUR m. 27.1 31.5 30 - 36
Earnings after tax in EUR m. 22.3 19 - 23 21.4 20 - 24
Earnings per share EUR/share 3.39 2.84 - 3.07 2.87 -
undiluted 3.45 3.45
</pre>
1: Adjusted by currency effects: 527.5 million euros
Fourth quarter in 2014
<pre>
CEWE Group Unit Q4 2013 Q4 2014 Diff. % Diff. abs.
Digital prints in m. units 759 746 -1.7 -13
Prints from films in m. units 22 18 -19.1 -4
Total prints in m. units 781 763 -2.2 -18
CEWE PHOTO BOOK in m. units 2.2 2.3 +1.4 +0.1
Turnover in EUR m. 191.2 194.8 +1.9 +3.6
EBIT in EUR m. 33.6 37.3 +11.0 +3.7
EBIT margin % 17.6 19.1
EBT in EUR m. 32.9 37.1 +13.0 +4.3
Earnings after tax in EUR m. 27.7 25.8 -6.9 -1.9
</pre>
Percentage deviations have all been calculated at the exact values.
Comments on reported figures: In accordance with IFRS specifications, since
the third quarter of 2014 CEWE has no longer reported items of sales
expenses in reduction of turnover; instead these items have been reported
under "other operating expenses". This applies for an amount of 7.3 million
euros for 2014, and 7.7 million euros were subsequently re-allocated for
2013. Furthermore, in conformity with IFRS provisions, CEWE with immediate
effect reports EBIT including other taxes, which had hitherto only been
deducted with income tax from EBT, and are now part of "other operating
expenses". This means that for 2014, other taxes in the amount of 0.9
million have already been taken into account in EBIT, and 0.7 million euros
in other taxes were subsequently re-allocated for 2013. The EBIT target of
30 to 36 million euros for 2014 was still shown before other taxes in March
2014, according to the logic applied so far.
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:
25 March 2015 2014 Annual Report
25 March 2015 Annual report and analysts' press conference,Frankfurt
12 May 2015 Publication of the Q1 2015 interim report
3 June 2015 2015 Annual General Meeting, Weser-Ems-Halle, Oldenburg
11 August 2015 Publication of the 2015 H1 half-year financial report
12 November 2015 Publication of the Q3 2015 interim report
About CEWE: The innovative photo and online print service company CEWE,
with 11 highly-technical production operations and a staff of around 3,200
employees in 24 European countries, is both market and technological
leader. In 2014 CEWE delivered around 2.3 billion prints, 5.9 million
copies of the CEWE PHOTO BOOK and photo gift articles to around 30,000
retail partners to generate consolidated turnover of 523.8 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 advertising is
marketed through the sales platforms CEWE-PRINT.de, Saxoprint und
Viaprinto. In 1961 CEWE was founded by Senator h. c. Heinz Neumüller. The
company went public under the leadership of Hubert Rothärmel in 1993. CEWE
Stiftung & Co. KGaA is listed on the SDAX.
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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: 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
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336981 25.03.2015
DGAP-News: CEWE wants to see a renewed rise in earning power
| Source: EQS Group AG