CEWE Stiftung & Co. (CWC) Q2 2025 earnings summary

Executive summary

• Group turnover grew 4.0% year-over-year in H1 2025 to €329.4 million, with Q2 turnover up 3.1% to €156.0 million, mainly driven by photofinishing and retail growth, despite commercial online print weakness.

• EBIT in Q2 and H1 was fully in line with expectations and seasonal patterns, though H1 EBIT declined to €2.1 million from €5.1 million in H1 2024.

• Annual targets for revenue (€835–865 million) and EBIT (€84–92 million) are confirmed, with strong outlook for Q3 and Q4.

• Photofinishing remains the core growth driver, with premiumization and customer acquisition, while retail outperformed and commercial online print faced headwinds.

• The company maintains robust brand positioning and operational efficiency, supporting its strategic goals.

Financial highlights

• H1 2025 revenue: €329.4 million (+4.0% year-over-year); Q2 2025 revenue: €156.0 million (+3.1% year-over-year).

• H1 2025 EBIT: €2.1 million (H1 2024: €5.1 million); Q2 2025 EBIT: -€4.0 million (Q2 2024: -€2.9 million), both in line with guidance and seasonal trends.

• Free cash flow decreased by €3.7 million in Q2 and was -€52.2 million in H1 2025, mainly due to higher inventories and working capital for Christmas preparation.

• Equity ratio stable at 66.7% as of June 30, 2025, reflecting a strong balance sheet.

• ROCE at 17.1% (17.8% excluding cash increase in capital employed).

Outlook and guidance

• Revenue and EBIT targets for 2025 reaffirmed: revenue €835–865 million, EBIT €84–92 million, EPS €8.32–9.12, and net income €58–63 million.

• Growth expected mainly from digital photofinishing and premiumization, with positive market trends in travel supporting demand.

• Guidance ranges reflect uncertainties in demand, inflation, and cost developments.

• Operational capital expenditure planned up to €65 million in 2025, funded from operating cash flow.

• Dividend policy targets further increases, with 2024 marking the 16th consecutive annual dividend hike.