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CEWE with a slight improvement in earnings after three quarters

DGAP-News: CEWE Stiftung & Co. KGaA / Key word(s): 9 Month figures
12.11.2020 / 07:00
The issuer is solely responsible for the content of this announcement.

CEWE with a slight improvement in earnings after three quarters

  • Robust core business of Photofinishing offsets coronavirus-induced declines in Retail and Commercial Online-Print
  • Turnover decreases slightly by 3.3% to 413.3 million euros after 9 months
  • EBIT improves by 1.4 million euros to - 1.6 million euros
  • CEWE well prepared for vital Christmas business with personal photo gifts: the "My very personal gift" Christmas campaign gets off to a good start

Oldenburg, 12 November 2020. CEWE Stiftung & Co. KGaA (SDAX, ISIN: DE 0005403901) reported a slight decline in sales of 3.3% to 413.3 million euros (Q1-3 2019: 427.2 million euros) for the first three quarters of 2020. The EBIT for this period nonetheless improved by 1.4 million euros to -0.6 million euros (Q1-3 2019: -2.0 million euros). "Just like the economy in general, we are naturally also feeling the impact of the coronavirus pandemic. More than anything else, this applies for our retail and commercial online printing business segments, both of which have been affected by the crisis. On the other hand, our core business segment of photofinishing has shown itself to be robust, continuing to grow in the first nine months of the year. This gives us reason to be confident about the upcoming Christmas season, since it is very significantly marked as an occasion to give individual, personal photo products as gifts," emphasises CEO Dr. Christian Friege. For CEWE, sales of CEWE PHOTOBOOK, photo calendars and other photo gifts at Christmas time is traditionally decisive for the company's annual net income.

Photofinishing: customers continue to focus on high-quality photo products
In spite of the persistent coronavirus situation, the core business segment of photofinishing reported an increase in turnover of 5.9% to 335.7 million euros. In doing so, this segment benefited from the first lockdown in April and May 2020. While instant POS prints were impacted by a reduced visitor frequency, the stay-at-home requirement was good for new orders. Q3 was dominated by the coronavirus-induced change in holiday travel habits to result in few photo orders overall. Turnover per photo increased by altogether more than 10%, to 23.18 eurocents, in the first nine months of the year. The EBIT for this business segment rose sharply by 6.0 million euros to 8.6 million euros (Q1-3 2019: 2.6 million euros). Besides additional contributions to profits resulting from the rise in sales, the cost-reduction programme, initiated as early as in March, also improved the EBIT in comparison to that of the previous year.

Cost structure in commercial online printing optimised
The business segment of commercial online printing was particularly hard hit by the coronavirus situation: sales in the first three quarters of 2020 declined by 35.0%, to 48.8 million euros (2019 Q1-3: 75.1 million euros). Intensive cost management enabled the EBIT decline of 2.7 million euros to -5.0 million euros to be contained in spite of this considerable drop in sales (EBIT in Q1-3 2019: -2.3 million euros). "We are convinced that our brand portfolio, which we streamlined as early as at mid-year, and our sustainably optimised cost structure will see us emerging stronger from the crisis," explains Christian Friege. The integration of LASERLINE production in Berlin into the SAXOPRINT operation in Dresden, initiated at the beginning of the year, has also already been successfully implemented.

Retailing continues to focus on higher-margin product ranges
CEWE has for some time now been cutting back its hardware retail sales in order to focus on higher-margin product ranges. This year the temporary lockdown in the second quarter saw CEWE retailing most negatively impacted by shop closures. At 24.0 million euros, sales in the business segment in the first three quarters thus declined by 23.0% (Q1-3 2019: 31.2 million euros). Due to optimisation measures initiated as early as in the first six-month period of 2020, to provisions for shop closures already posted and to the depreciation of inventories of altogether 3.2 million euros, the EBIT is reported at 3.7 million euros (Q1-3 2019: -0.8 million euros). Without these extraordinary accounting items, operative earnings generated by retailing, at -0.5 million euros for the first nine months of the year, developed even slightly better than in the previous year, mainly as a result of cost cuts. Retailing also traditionally achieves its annual net income in the fourth quarter of a calendar year.

Christmas season is decisive for annual net income
Photofinishing Christmas business largely determines CEWE's annual net income. This year it is not possible to estimate how the pandemic will tangibly impact the performance of business in the 2020 Christmas quarter with any degree of certainty such as is required for forecasts. "In this exceptional year it is not possible to make any reliable prediction concerning fourth-quarter earnings." Dr. Christian Friege expresses his optimism: "We are confident that our first-class photo products have long established themselves as individual, personal Christmas gifts and that we are in a position to provide an extremely wide range of products." Besides, this year's Christmas campaign, "My very personal gift" got off to a good start in November. In the campaign, real CEWE customers go on-camera to share their experience with the CEWE PHOTOBOOK, a very personal, individual product. The campaign is brought to consumers throughout Europe: on television, in magazines, online and also in several other media.

CEWE remains strong: equity and ROCE continue to grow
The fact that CEWE is maintaining its very sound position in spite of a generally difficult economic situation is highlighted by the development of the capital ratio, which increased to 53.2% as at the end of the third quarter (30 September 2019: 46.1%). The return on capital employed also continued to develop positively, with the ROCE as at 30 September 2020 having improved once again, to a current 15.4% in comparison to 15.3% as at 30 September 2019. Adjusted by the restructuring costs in the 12-month EBIT and by the effect of IFRS 16 on the average capital employed, the ROCE even climbed to a very solid level at 20.0% (adjusted Q3 2019: 17.4%). CFO Dr. Olaf Holzkämper: "It is important to be able to rely on a sound, sustainable foundation, particularly in turbulent times. Our foresighted operation allows us to continue to develop our business, even in this pandemic period. CEWE's position remains extremely sound."

An overview of 2020 Q3 and Q1-3 results

CEWE business segments Unit Q3 2019 Q3 2020 Q1-3 2019 Q1-3 2020
(1) Photofinishing          
Photos m. photos 549.6 474.6 1,508.9 1,448.1
CEWE PHOTOBOOK in th. units 1,407 1,188 3,973 3,921
Turnover EUR m. 116.2 110.4 316.9 335.7
EBIT EUR m. 0.8 0.2 2.6 8.6
Purchase price allocation effects EUR m. -1.1 -1.1 -2.5 -3.3
EBIT before special effects EUR m. 1.9 1.3 5.1 11.9
(2) Retailing          
Turnover EUR m. 10.2 9.0 31.2 24.0
EBIT EUR m. -0.1 -0.1 -0.8 -3.7
Restructuring provisions EUR m. - - - -1.7
Allowances for inventories of stocks EUR m. - - - -1.5
EBIT before special effects EUR m. -0.1 -0.1 -0.8 -0.5
(3) Commercial Online Printing          
Turnover EUR m. 24.8 15.4 75.1 48.8
EBIT EUR m. -0.8 -1.6 -2.3 -5.0
Purchase price allocation effects EUR m. -0.1 -0.1 -0.4 -0.2
Conversion to performance-oriented
allowances for depreciation
EUR m. - - - 0.6
EBIT before special effects EUR m. -0.7 -1.5 -1.8 -5.3
(3) Other          
Turnover EUR m. 1.4 1.6 4.0 4.7
EBIT EUR m. -0.3 -0.2 -1.5 -0.5
CEWE Group Unit Q3 2019 Q3 2020 Q1-3 2019 Q1-3 2020
Turnover EUR m. 152.7 136.3 427.2 413.3
EBIT EUR m. -0.5 -1.7 -2.0 -0.6
Total special effects EUR m. -1.2 -1.2 -2.9 -6.1
EBIT before special effects EUR m. 0.8 -0.5 0.9 5.5
EBT EUR m. -1.0 -2.0 -2.8 -1.5

Rounding differences may occur. Percentage deviations have all been calculated at the exact values.

Notes to the "Earnings by Business Segment" chart

(1) Photofinishing: Production and sale of photo products such as the CEWE PHOTO BOOK, 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
Should you have any queries, please contact:
CEWE Stiftung & Co. KGaA, Axel Weber (Investor Relations)
Tel.: 0441 / 404 - 2288, Fax: 0441 / 404 - 421, Email:

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Financial schedule
(insofar as already scheduled)

14.11.2020 CIC Market Solutions Forum
16.11.2020 German Equity Forum
07.01.2021 ODDO BHF Forum 2021
20.01.2021 GCC 2021 - UniCredit/Kepler Cheuvreux Conference
25.03.2021 CEWE 2021 Annual Report and analysts' press conference
25.03.2021 Publication of the 2020 Annual Report

About CEWE
The CEWE Group is Europe's leading photo service and online printing supplier.

From its beginnings in 1912, CEWE has progressed to become the leading photo service company for all those wanting to make more of their photos. This is mainly due to the much-awarded CEWE PHOTOBOOK, with more than six million books being sold each year. Customers can purchase other personalised photo products under the brand names of CEWE, WhiteWall and Cheerz - and from many leading retailers in Europe. In terms of their personal photos, they are inspired to produce a variety of creative designs and they entrust the company with around 2.4 billion photos every year.

The CEWE Group has also set up a highly efficient production system for the online printing market, which is still new. Every year billions of high-quality printed products are delivered reliably to their purchasers through the SAXOPRINT, LASERLINE and viaprinto sales platforms.

The CEWE Group, through the founder family of Neumüller as an anchor shareholder, focuses on sustainable corporate management and has already received many awards for this effort: economically sustainable in the long term; cooperative and fair in dealings with customers, employees and suppliers; socially responsible and protective of the environment and resources. An example of this is the climate-neutral process used to produce all the CEWE brand-name products.

The CEWE Group has a staff of more than 3,800 and operates in more than 20 countries. Group sales rose to 714.9 million euros in 2019. CEWE is listed on the SDAX.

More information is available at

12.11.2020 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.

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Planung & Reporting

Telefon: +49 (0) 441 404-2288
Fax: +49 (0) 441 404-421

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