DGAP-News: CEWE COLOR right on track after a good third quarter
(firmenpresse) - DGAP-News: CeWe Color Holding AG / Key word(s): Quarter Results
CEWE COLOR right on track after a good third quarter
15.11.2011 / 06:55
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CEWE COLOR right on track after a good third quarter
- Dr. Hollander: 'Good basis for achieving annual targets'
- Despite shift in season: turnover rises by 4.6 %
- Break-even point 2011 exceeded
- 12-month ROCE increases to 17.0 %
- Substantial increase expected in fourth quarter
- Forsa survey: 89% delighted with photo books
Oldenburg, 15 November 2011. CEWE COLOR Holding AG (SDAX, ISIN:
DE0005403901) surprisingly increased its turnover over that of the previous
year in the third quarter and reached the break-even point for 2011.
Earnings after tax reached EUR 0.4 million (Q1-Q3 2010: EUR -1.2 million).
Consumers order fewer photos straight after their summer holidays in the
third quarter, but they order all the more added-value photo products as
Christmas gifts in the fourth quarter. This seasonal shift continues, so
turnover and the proportion of earnings from the first three quarters are
dropping and the fourth quarter is being strengthened more than the other
quarters. The company nevertheless raised third-quarter turnover by 4.6 %
to EUR 121.8 million. With EBIT at EUR 8.9 million (Q3 2010 EUR 12.3
million), CEWE COLOR exceeded the expected figure of EUR 7.6 to 8.4 million
in the third quarter. The consensus expectation of analysts following up on
CEWE COLOR was thus more than met to the amount of EUR 0.6 million,
although the fourth quarter had to absorb significant costs for preparing
for Christmas business. Accumulated EBIT was EUR 4.4 million. Now EBIT only
needs to grow over that of the fourth quarter in 2010 (EUR 21.8 million) by
EUR 1.8 million to EUR 23.6 million to reach the target of EUR 28 to 31
million. In the past five years the increase in EBIT has always been more
than EUR 1.8 million. 'The third quarter puts us in an excellent position
for the Christmas season, which is becoming increasingly important and is
by far the strongest quarter in terms of photo book sales,' says Dr. Rolf
Hollander, Chairman of the Board of Management of CEWE COLOR Holding AG.
The seasonal shift into the Christmas quarter continues
The dramatic rise in demand for added-value photo products - notably photo
calendars, photo greeting cards, CEWE PHOTO BOOKS - as Christmas gifts at
the expense of standard photos after summer holidays continues unabated. In
a recent representative survey conducted throughout Germany, the opinion
research institute forsa recently ascertained that more than half of the
people in Germany (56 %) prefer getting something self-made, such as a
photo book or photos, as a gift. Furthermore, 90 % of the respondents said
that they were especially pleased to receive a personally designed photo
book. 'We are pleased with the change in consumer behaviour since it raises
our annual net income. However, most of our income is now not generated
until the fourth quarter,' says Dr. Hollander. The summer quarter, which
used to be the top season and in 2007 still generated as much as 84% of our
operative net annual income, 'only' accounted for 40% of income in 2010,
and its contribution is still declining. On the other hand, in the
Christmas quarter, the contribution to earnings rose from 22% in 2007 to
72% in 2010. No end is in sight to this trend. 'This year we will even
generate as much as approx. 90% of our profits in the fourth quarter,'
expects Dr. Hollander.
Volume grows even against the trend
At 743 million photos, CEWE COLOR produced even far more photos in the 2011
third quarter than had originally been expected (target corridor 630 to 660
million photos) and achieved an increase of 2 percent over the previous
year (Q3 2010: 729 million photos). The CEWE PHOTO BOOK contributed most to
this increase: in the third quarter the 25.8 % rise in sales to 1.354
million exceeded the target corridor for the full year of +7 % to +12 %.
Turnover per photo also increased in the quarterly period under report, by
4.1 % to result in a 6.2 % rise in turnover for photofinishing to EUR 91.9
million, once again confirming the 'from mass to class' trend, while retail
sales remained stable at EUR 29.9 million.
Sound capital ratio: 43 %
Enhanced capital efficiency is shown in the 12-month outlook: the return on
capital employed (ROCE) rose from 14.1 % (as at 30 September 2010) to a
current 17.0 % (as at 30 September 2011). On the one hand the reason for
this rise is the reduction of EUR 2.4 million in capital commitment
(capital employed as at 30 September 2011: EUR 153.9 million) and on the
other hand, more than anything else, it is the improved earnings power of
the company. EBIT for the period from the fourth quarter in 2010 to the
third quarter in 2011, at EUR 26.2 million, is EUR 4.1 million higher than
the comparative value of the same period of the years before. At the same
time the capital ratio increased from 42.4 % to 43.0 % in the past twelve
months.
Product range extended for Christmas business
CEWE COLOR has extended its range of different types of paper and different
formats even more at the onset of the Christmas season - more than 40
high-quality variants are now available. But it is not only the CEWE PHOTO
BOOK that is important, greeting cards and photo calendars play a vital
role in the fourth quarter too, since they are also popular gift ideas for
Christmas.
Immune against a potential slowdown in economic development
For the fourth quarter and for the full year of 2012, CEWE COLOR expects
the positive basic trend to be maintained. 'Not even economic risks can
change this. The experience made in the crisis years of 2008 and 2009 has
confirmed quite impressively that demand for our products remains robustly
positive, even in times of a weak economy, declining consumer confidence
and a drop in private consumer spending,' explained Dr. Hollander. It is
particularly in such phases that private matters become more important than
ever: 'And personalised photo products are most important in this case.'
This effect meant that the earning power of the company did not suffer,
even in recessions; instead it even tended to benefit.
Forecast confirmed
On the basis of the third quarter, the Board of Management confirms the
forecast that turnover will grow by up to 3 % and will amount to up to EUR
460 million in 2011 (target corridor: EUR 447 to 460 million) and that EBIT
will be at EUR 28 to 31 million (an increase of up to 10% over the previous
year). Despite initial funding for commercial digital printing, the annual
net profit is to increase by up to 39%, to EUR 16 to 19 million, and
earnings per share are to increase to EUR 2.36 to 2.80 in 2011. It is
primarily the CEWE PHOTO BOOK and digital added-value products that are to
contribute to the increase in sales and earnings. In the coming years,
growing sales generated by the offline print service viaprinto.de are to
boost weak seasonal phases and hence result in a more uniform capacity
utilisation than now. Dr. Hollander: 'Our commercial online print service
viaprinto.de got off to a good start and is steadily winning over an
increasing number of enthusiastic customers.'
CEWE COLOR Group: Q3 and Q1-Q3 comparisons with previous years
Q3 PY ACTUAL
Digital prints in million 609.6 660.3 +8.3% +50.7
units
Prints from in million119.2 82.9 -30.5% -36.3
films units
Total prints in million 729 743 +2.0% +14.4
units
CEWE PHOTO BOOKS in thousand 1,076.5 1,354.1 +25.8% +277.6
books
Turnover in million 116.4 121.8 +4.6% +5.4
euros
EBIT in million 12.3 8.9 -27.6% -3.4
euros
Earnings after in million 9.4 6.4 -31.7% -3.0
tax euros
Q1-Q3 PY ACTUAL
Digital prints in million 1,462.8 1,533.0 +4.8% +70.2
units
Prints from in million 300.2 203.3 -32.3% -96.9
film units
Total prints in million 1,763 1736 -1.5% -26.7
units
CEWE PHOTO in thousand 2,685.5 3,244.3 +20.8% +558.8
BOOKS books
Turnover in million 296.8 308.1 +3.8% +11.3
euros
EBIT in million 6.4 4.4 -31.3% -2.0
euros
Earnings after in million -1.1 0.4 +136% +1.5
tax euros
Totals and changes (percentages and absolute) are all calculated at their
exact value
Should you have any queries, please contact:
CEWE COLOR Holding AG, Axel Weber (Investor Relations)
Tel.: 0441 / 404 - 2288, Fax: 0441 / 404 - 421,
Email: IR(at)cewecolor.de
Internet: www.cewecolor.de , www.cewe-fotobuch.de , www.viaprinto.de
Financial schedule:
21./22.11.2011: German Equity Forum, Frankfurt/Main
22.03.2012: Publication of the 2011 business report
22.03.2012: Annual report and analysts' press report, Frankfurt/Main
06.06.2012: Annual General Meeting, Park Hotel, Bremen
About CEWE COLOR: Photo service company CEWE COLOR, with 12 highly
technical production operations and a staff of around 2,700 employees in 24
European countries, is both market and technological leader. In 2010 CEWE
COLOR delivered around 2.5 billion prints, more than 4.3 million CEWE PHOTO
BOOKS and photo gift articles to more than 45,000 retail partners to
generate consolidated turnover of EUR 446.8 million. CEWE COLOR is a 'first
mover' in the introduction of new digital technologies and products. CEWE
COLOR is continuing to expand its commercial online printing service
viaprinto.de as an additional business segment. CEWE COLOR is celebrating
its 50th company anniversary in 2011: In 1961 CEWE COLOR was founded by
Senator h.c. Heinz Neumüller. The company went public under the leadership
of Hubert Rothärmel in 1993. CEWE COLOR Holding AG is listed on the SDAX.
End of Corporate News
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15.11.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: CeWe Color Holding AG
Meerweg 30-32
26133 Oldenburg
Germany
Phone: +49 (0)441 40 4-1
Fax: +49 (0)441 40 4-42 1
E-mail: IR(at)cewecolor.de
Internet: www.cewecolor.de
ISIN: DE0005403901
WKN: 540390
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard);
Freiverkehr in Düsseldorf, Hamburg, Hannover, München,
Stuttgart
End of News DGAP News-Service
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