CEWE Stiftung & Co. (CWC) Q2 2024 earnings summary

Executive summary

• Group turnover rose 7.4% in H1 2024 to €317.1m and 8.2% in Q2 to €151.5m, driven by Photofinishing growth.

• H1 2024 EBIT increased 385% to €5.4m; Q2 EBIT improved by €1.4m to -€2.7m, both above plan.

• Photofinishing achieved record turnover and earnings, while Commercial Online Printing and Retail improved profitability despite lower sales.

• Equity ratio increased to 66.7% and ROCE reached 19.2% as of June 30, 2024.

• Fifteenth consecutive dividend increase to €2.60 per share for 2023 was approved.

Financial highlights

• H1 2024 group turnover: €317.1m (+7.4% YoY); Q2 2024: €151.5m (+8.2% YoY).

• H1 2024 EBIT: €5.4m (vs. €1.1m H1 2023); Q2 2024 EBIT: €-2.7m (vs. €-4.1m Q2 2023).

• H1 EBITDA: €31.3m (+17.7%); Q2 EBITDA: €10.5m (+21.6%).

• H1 earnings after tax: €4.2m (H1 2023: €0.8m); Q2 earnings after tax: -€1.6m (Q2 2023: -€3.7m).

• Free cash flow in Q2: -€14.0m, mainly due to investments; H1 free cash flow: -€40.9m.

Outlook and guidance

• 2024 revenue target: €770–820m; EBIT: €77–87m; EBT: €75.5–85.5m; EPS: €7.26–8.22.

• Management targets upper half of guidance, focusing on offsetting inflation through price adjustments.

• Photo volume and CEWE PHOTOBOOK targets: -2% to +2% change from 2023.

• Operational investments planned at €65m or less, funded from operating cash flow.

• Planning does not factor in extended Ukraine war effects; inflation and price increases remain uncertainties.