Release Date: August 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CEWE Stiftung & Co KGaA reported a 7.3% increase in group turnover, reaching EUR 317 million, surpassing their growth target of 5% for 2024.
- The Group EBIT increased significantly by EUR 4.3 million to EUR 5.4 million, indicating strong financial performance.
- The company's Net Promoter Score (NPS) increased by 0.9 points to 62.7, reflecting improved customer satisfaction.
- CEWE Stiftung & Co KGaA was recognized as a sustainability leader and released its 14th sustainability report, highlighting its commitment to environmental and social responsibility.
- The photofinishing segment saw a 10% increase in turnover, driven by a 3% increase in volume and a 5% increase through premiumization and price adjustments.
Negative Points
- The Group EBIT for Q2 was traditionally negative, with a remaining loss of EUR 2.7 million, although this was an improvement from the previous year.
- The commercial online print segment experienced a 3% decline in turnover, reflecting challenges in this market segment.
- The retail business saw a 4.2% decline in turnover, indicating a shift away from hardware sales towards photofinishing.
- The company faced increased personnel expenses, rising from EUR 50.1 million to EUR 54.4 million, due to higher staffing levels and wage increases.
- Operating expenses increased by EUR 6 million, driven by changes in sales structure and increased marketing efforts.
Q & A Highlights
Q: Can you elaborate on the factors driving the increase in Group EBIT for the first half of 2024?
A: Yvonne Rostock, Chairman of the Management Board, explained that the Group EBIT increased by EUR4.3 million to EUR5.4 million, nearly five times the previous figure. This growth is attributed to a strong performance in photofinishing, strategic pricing, and premiumization efforts, as well as a shift in business models for major clients to commission-based structures.
Q: How has the photofinishing segment performed, and what are the key drivers behind its growth?
A: Yvonne Rostock highlighted that the photofinishing segment saw a turnover increase of 10%, driven by a 3% increase in volume and a 5% increase through premiumization and price adjustments. The segment's EBIT also increased by EUR3.3 million, reaching EUR4.4 million, indicating a strong market position and successful strategic initiatives.
Q: What is the company's approach to managing macroeconomic challenges?
A: Yvonne Rostock stated that CEWE is mitigating macroeconomic challenges by focusing on innovation, investing in marketing, and enhancing customer experience. The company aims to remain independent of macroeconomic fluctuations by continuously improving its product offerings and maintaining a strong market presence.
Q: Can you provide insights into the commercial online print segment's performance?
A: Yvonne Rostock noted that the commercial online print segment experienced a 3% decline in turnover but managed to improve EBIT by EUR1 million due to optimized cost structures. The segment is focusing on expanding its product portfolio and leveraging synergies with photofinishing to capture market share in a declining market.
Q: How is CEWE planning to utilize its cash reserves?
A: Olaf Holzkämper, CFO, mentioned that the company aims to invest its cash reserves wisely in strategic initiatives that offer a good return on investment. While CEWE is not looking to accumulate cash unnecessarily, it plans to deploy funds in a conservative manner to support long-term growth and value creation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
