CEWE achieves all its corporate targets for 2017

DGAP-News: CEWE Stiftung & Co. KGaA / Key word(s): Preliminary Results

19.02.2018 / 19:00
The issuer is solely responsible for the content of this announcement.

 CEWE achieves all its corporate targets for 2017

- Sales targets all achieved in 2017, turnover rises by 1.1 % to 599.4 million euros

- Strong fourth quarter seasonal peak for the CEWE PHOTO BOOK and photo gifts

- Group EBIT grows by 4.7 % to 49.2 million euros in 2017

Oldenburg, 19 February 2018. CEWE Stiftung & Co. KGaA (SDAX, ISIN: DE 0005403901) reached its turnover and profit targets for the financial year of 2017. Preliminary calculations show a 1.1 % increase in turnover, to 599.4 million euros (2016: 593.1 million euros, turnover target for 2017: 585 million to 615 million euros). Operative earnings (EBIT) improved by 4.7 % to 49.2 million euros (2016: 47.0 million euros) and is thus in the 2017 EBIT target corridor of 45 million to 51 million euros. As a one-off effect, the EBIT also includes impair-related depreciation on intangible assets in the amount of 3.5 million euros. "Christmas business in 2017 was further proof of the strength of the CEWE brand. In spite of the increase in value added tax on photo books, particularly in Germany, we were even able to slightly raise the volume of CEWE PHOTO BOOKS sold in the second half of the year. Our climate-neutral product groups of CEWE CALENDARS, CEWE WALL ART, CEWE CARDS and other photo gifts are also proving to be success factors," says Dr. Christian Friege, Chairman of the Board of Management of CEWE Stiftung & Co. KGaA.

Success is powered by the CEWE PHOTO BOOK and other CEWE brands
With an increase in turnover from 228.5 million euros to 234.5 million euros and operative earnings (EBIT) of 46.1 million euros, the Christmas quarter fully met expectations (EBIT for Q4 2016: 42.9 million euros). The fourth quarter thus accounts for 39.1 per cent of total sales and 93.6 per cent of generated income, with photo gifts, CEWE CALENDARS and the CEWE INSTANT printed in retail stores being the main drivers of the increases in sales. Sales figures for the CEWE PHOTO BOOK even exceeded those of the previous year due to brisk Christmas business in the fourth quarter, so the negative effects of the increase in value added tax, from 7 % to 19 %, were more than compensated for. "More than ever, our CEWE PHOTO BOOK and our other digital picture offers are popular Christmas gifts. Even when capacity utilisation is very high, as it is in the Christmas season, our customers know that we always work with an absolute focus on quality and service. They can rely on punctual delivery and excellent product quality with each order they place. Keeping this brand promise has meant that customer satisfaction has once again been enhanced," Chrisitan Friege adds.

Sales targets all reached - digital rate approaching 100 %
CEWE has almost completed the transformation to become a purely digital company: With production at 2.17 billion digital photos, CEWE was able to achieve the target of 2.08 to 2.18 billion digital photos in 2017 at a high level. Only 47 billion photos from films were posted in the books last year. The digital rate thus rose to 97.8 % (2016: 97.5 %). With 6.02 million books sold, the CEWE PHOTO BOOK (target for 2017: 6.00-6.25 million books) is a significant guarantee for a good result. The majority of other high-growth brand products such as CEWE CALENDARS, , CEWE WALL ART, CEWE CARDS and other photo gifts are showing excellent results.

ROCE remains at more than 20 %
The capital ratio rose by 2.1 percentage points to 56.0 % as at 31 December 2017 (31 December 2016: 53.8 %). On the basis of operative earnings (EBIT) of 49.2 million euros, the return on capital employed (ROCE) was again at a high level of 20.1 % on 31 December 2017 (31 December 2016: 21.3 %). "Our strong earnings and financial position enables us to launch targeted growth initiatives. We wish to continue offering our shareholders an ideally growing dividend for the foreseeable future," explains CFO Dr. Olaf Holzkämper.

Takeovers promise further growth
In the past few months, CEWE has taken over the online printing company Laserline as well as acquiring 80 % of the shares in leading French photo app company "Cheerz". The company is using these two acquisitions to set a growth impulse in photofinishing and commercial online printing, and expects to generate sustained positive effects on the value of CEWE as a whole.

The information is all based on preliminary results which have not yet been audited. CEWE will present full, audited annual financial statements and a forecast for the business year of 2018 during an annual report and analysts' press conference to be held in Frankfurt/Main (Hotel Villa Kennedy) on 22 March 2018.

Full year of 2017 in comparison to the previous year and target (preliminary figures)

CEWE Group Unit 2016 2017 target 2017 actual
Digital prints in billion units 2.18 2.08-2.18 2.13
Prints from films in billion units 0.056 0.040-0.045 0.047
Total prints in billion units 2.23 2.12-2.23 2.17
CEWE PHOTO BOOK in m. units 6.2 6.00-6.25 6.02
Turnover in EUR m. 593.1 585-615 599.4
EBIT in EUR m. 47.0 45-51 49.2
EBIT margin % 7.9%   8.2%
EBT in EUR m. 46.2 44.5-50.5 48.9


Fourth quarter of 2017 (preliminary figures)

CEWE Group Unit Q4 2016 Q4 2017 Diff. % Diff. abs.
Digital prints in m. units 768.0 772.0 +0.5% +3.7
Prints from films in m. units 11.5 9.9 -13.9% -1.6
Total prints in m. units 780 782 +0.3% +2.1
CEWE PHOTO BOOK in m. units 2.4 2.4 +0.4% +0.009
Turnover in EUR m. 228.5 234.5 +2.6% +6.0
EBIT in EUR m. 42.9 46.1 +7.2% +3.1
EBIT margin % 18.8% 19.6%    
EBT in EUR m. 41.7 45.5 +9.1% +3.8

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.de , cewe-fotobuch.de , cewe-photobook.com , cewe-print.de , viaprinto.de , SAXOPRINT.de

The CEWE apps are all available in the app stores: CEWE PHOTO WORLD, CEWE POSTCARD, CEWE PURE 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:
(insofar as already scheduled)

22.03.2018 2017 Annual Report
22.03.2018 2018 CEWE press conference
22.03.2018 2018 CEWE analysts' conference
22.03.2018 Press release on the 2017 annual financial report and an outlook on 2018
19.04.2018 2018 Bankhaus Lampe Deutschland Conference
14.05.2018 Publication of the 2018 Q1 interim report
14.05.2018 Press release on the 2018 Q1 interim report
06.06.2018 2018 Annual General Meeting
09.08.2018 Publication of the 2018 Q2 interim report
09.08.2018 Press release on the 2018 Q2 interim report
24.09.2018 2018 Berenberg & Goldman Sachs German Corporate Conference
25.09.2018 2018 Baader Investment Conference
13.11.2018 Publication of the 2018 Q3
13.11.2018 Press release on the 2018 Q3 interim report
26.11.2018 2018 German Equity Forum

About CEWE: The innovative photo and online print service company, with twelve highly-technical production operations and a staff of around 3,500 employees in 24 European countries, is both market and technological leader. In 2016 CEWE delivered around 2.2 billion prints, 6.2 million CEWE PHOTO BOOK copies and numerous photo gift articles to more than 20,000 retail partners to generate consolidated turnover of 593.1 million euros. The company is continuously generating new impulses in the photographic industry with innovations for people who enjoy taking photos. CEWE is a leading company when it comes to climate protection. The production of CEWE PHOTO WORLD brand products is completely climate-neutral. In the new business segment of "Commercial online printing", printed material for businesses is marketed through the sales platforms of CEWE-PRINT.de, SAXOPRINT and viaprinto. Founded by Senator h. c. Heinz Neumüller in 1961, CEWE has been listed on the stock exchange since 1993 and is currently an SDAX member.

19.02.2018 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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