CEWE achieves all its corporate targets for 2018

  • Turnover of 653.3 million euros (+9.0%) and EBIT of 53.7 million euros (+9.2%) in 2018
  • Pleasing growth thanks to CEWE PHOTOBOOK and photo gifts
  • Successful Christmas season: Q4 turnover increases by 11.6% and EBIT by 20.8%

CEWE Stiftung & Co. KGaA (SDAX, ISIN: DE 0005403901) reached its turnover and profit targets for the financial year of 2018. Preliminary calculations show a 9.0% increase in turnover, to 653.3 million euros (2017: 599.4 million euros, turnover target for 2018: 630-665 million euros). CEWE achieved this through positive growth in the CEWE PHOTOBOOK and other photo gifts in the Christmas season. This enabled CEWE to withstand the general weakness in retailing in 2018, which was most affected by the weak summer months. The trend towards mobile devices and apps backs up CEWE’s success: an increasing number of people are taking photos with their smartphone and placing orders, including mobile orders, for more and more photo products showing their personal photos. Operative earnings (EBIT) thus improved in total by 9.2%, to 53.7 million euros (2017: 49.2 million euros), coming very close to the 2018 EBIT target corridor of 48-54 million euros. The fourth quarter of 2018 considerably boosted growth and income: with turnover at 261.6 million euros (+11.6%) and EBIT at 55.7 million euros (+20.8%), CEWE once again clearly exceeded the strong figures of the previous year.

Strong Q4 has a considerable effect on annual net income
The trend, which has been ongoing for many years, was once again confirmed: the fourth quarter is gaining in significance. CEWE generated all of the Group’s annual profits in the fourth quarter. Dr. Christian Friege, Chairman of the CEWE Stiftung & Co. KGaA Board of Management points out: ”We focused our capacity planning on the seasonal peak. A big thank-you goes to all our staff, who once again made this result possible with their impressive commitment. Despite extremely high capacity utilization in our production operations, the CEWE team ensured maximum satisfaction among our customers thanks to the outstanding quality and reliability they achieved around the clock. We thank our customers for the confidence shown in CEWE. With this confidence they are motivating us to be even better in 2019,” CEO Dr. Friege adds.

Growth in the CEWE PHOTOBOOK and photo gifts more than anticipated
The CEWE PHOTOBOOK and photo gifts, such as phone cases, contributed significantly to our annual profit. These products once again achieved best results in the fourth quarter and hence also in 2018: for the year as a whole, sales of the CEWE PHOTOBOOK, at 6.18 million books sold, topped the highest level in the target range of 6.08 to 6.14 million books. The target corridor of 2.12 to 2.14 billion photos sold was also exceeded, with sales totaling 2.23 billion photos. Christian Friege says: ”More than ever before, our CEWE PHOTO BOOK and our other digital picture ranges are popular individual, personal Christmas gifts”.

High level of customer satisfaction with product quality and innovation 
”Even when capacity utilization is especially high, as it is in the Christmas season, our customers know that our work absolutely focuses on quality and service at all times. Keeping this brand promise has meant that customer satisfaction has once again been enhanced,” says Christian Friege. CEWE customers have also been excellent at taking up the innovative new products. These include ”hexxas” – hexagonal photo tiles which can be randomly hung up on the wall with magnets. During the Christmas season, customers also enthusiastically welcomed our CEWE PHOTOBOOK cover highlights, e.g. in gold, silver or in an effect finish, for which CEWE was distinguished with a prestigious TIPA World Award as the ”Best Photo Print Service Worldwide”. Dr. Friege continues: ”We benefit from our innovation, the outstanding quality of our CEWE products and the high level of brand loyalty shown by our customers. And we are helped by the trend towards mobile applications and the increase in the use of a smartphone as a really good camera.

Information is all based on preliminary results which have not yet been certified. CEWE will present full, audited annual financial statements at the annual report and analysts’ press conference to be held in Frankfurt am Main on 28 March 2019.
Overall year of 2018 in a comparison with the previous year and with targets (figures preliminary)

CEWE Group Unit 2017 actual 2018 target 2018 actual
Photos in billion units 2.17 2.12-2.14 2.23
CEWE PHOTOBOOK in m. units 6.02 6.08-6.14 6.18
Turnover in EUR m. 599.4 630-665 653.3
EBIT in EUR m. 49.2 48-54 53.7
EBIT margin % 8.2%   8.2%

 

 

Fourth quarter of 2018 (figures preliminary)

CEWE Group Unit Q4 2017 Q4 2018 Diff. % Diff. abs.
Photos in m. units 782 814.0 +4.2 +32.5
CEWE PHOTOBOOK in m. units 2.4 2.5 +4.5 +0.1
Turnover in EUR m. 234.5 261.6 +11.6 +27.1
EBIT in EUR m. 46.1 55.7 +20.8 +9.6
EBIT margin % 19.6% 21.3%    

Exact values have been used for all percentage deviation calculations.

Financial schedule:
(insofar as already scheduled)

28.03.2019 CEWE Annual Report and analysts’ press conference, Frankfurt
28.03.2019 Publication of the 2018 Annual Report
03.04.2019 Bankhaus Lampe Deutschland Conference, Baden-Baden
13.05.2019 Publication of the Q1 2019 interim statement
13.05.2019 Press report on the Q1 2019 interim statement
05.06.2019 2019 Annual General Meeting
13.08.2019 Publication of the 2019 HY1 interim report
13.08.2019 Press release on the 2019 HY1 interim report
24.09.2019 2019 Berenberg & Goldman Sachs German Corporate Conference
25.09.2019 2019 Baader Investment Conference
12.11.2019 Publication of the Q3 2019 interim statement
12.11.2019 Press report on the Q3 2019 interim statement
25.11.2019 2019 German Equity Forum

About CEWE: The innovative photo and online print service company, with twelve highly-technical production operations and a staff of around 3,900 employees in 24 European countries, is both market and technological leader. In 2018 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 Group turnover of 653.3 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. CEWE brand products are all produced in a climate-natural process. In the ”commercial online printing” business segment, printed material for businesses is marketed through the sales platforms of CEWE-PRINT.de, SAXOPRINT, viaprinto and LASERLINE. Founded by Senator h. c. Heinz Neumüller in 1961, CEWE has been listed on the stock exchange since 1993 and is an SDAX member.