CeWe Color Holding AG / Quarter Results
20.05.2009
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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CeWe Color: Q1 on target - annual projections confirmed
* No. 1 position on the European market for photo books reinforced
* Internet business increases by 29%
* Restructuring phase completed
* Sales and earnings according to plan
* Free cash flow rises by EUR 3.3 million
* Commercial digital prints new growth segment
Oldenburg, 20 May 2009 - CeWe Color Holding AG (SDAX, ISIN: DE0005403901)
is confirming its aims for the full year on the basis of results for the
first quarter of 2009. Chairman of the Board of Management Dr. Rolf
Hollander: 'Despite the financial and economic crisis, we expect to achieve
last year's level again, with sales at EUR 420 to 425 million and earnings
before tax of EUR 10 to 15 million.'
No. 1 position on the European market for photo books reinforced
CeWe Color continued on its impressive path of growth with the CEWE PHOTO
BOOK in the first quarter of 2009: with an increase of 57.8% to 647,000
CEWE PHOTO BOOKS (Q1/2008: 410,000 books) the market share was clearly
expanded. 'Growth is even higher when it comes to turnover. Market
researchers are forecasting that turnover on the European market will grow
by 35% in 2009. Our success in the first quarter means that we are growing
stronger than the market and we have reinforced our position as the
European market leader in the market for photo books, which is so vital for
us, says Hollander.
Internet business increases by 29%
In the first quarter of the year the total number of photos fell by 4.8% to
504 million photos due to a seasonal shift. The number of digital photos
(incl. CEWE PHOTO BOOK prints) nevertheless increased by 13.3% to 391
million photos. This means that as many as 78% of all the photos developed
are digital. More than 50% of these digital photos were ordered in the
Internet. Rolf Hollander: 'We have increased online sales by 29%. We are
thus setting very high standards in terms of sales figures for many
Internet companies in our sector.
Transformation-related restructuring completed
With the plant closures in Paris and Teplice (Czech Republic), a phase of
restructuring which lasted several years and reduced annual profits by an
average of EUR 10 million a year over the past five years, hence almost
halving these profits, has been completed. The elimination of these
restructuring costs will increase earnings as of 2010.
Sales and earnings according to plan
Turnover in the first quarter fell slightly, by 1% to EUR 81.7 million.
This is due to a change in the seasonal nature of the business: for years
now the Christmas quarter has been gaining in significance through CEWE
PHOTO BOOKS and other photo gift articles - at the expense of the first
three quarters. Restructuring in Paris and Teplice meant that CeWe Color
posted EUR 9.4 million in restructuring costs in the first quarter, as the
company had previously announced. Q1 2009 earnings before tax (EBT) were
hence negative by EUR 15.5 million. EBT before restructuring was negative
at EUR 6.2 million (Q1/2008: - EUR 4.5 million). This figure contains
initial losses for the introduction of commercial printing and additional
investments in marketing and research & development in order to further
expand business conducted with CEWE PHOTO BOOKS.
In future the new CeWe business segment of commercial printing will not
fully compensate for seasonal losses, but it will reduce them, says
Hollander.
Free cash flow rises by EUR 3.3 million
In the past seven years the company has invested a great deal in new
digital technology and has in the meantime largely replaced conventional
machines and equipment. This wave of investments is now receding. This is
why cash flow rose by EUR 3.3 million to - EUR 8 million in the seasonally
problematic first quarter. 'This is the best Q1 cash flow in five years,'
says Hollander.
Commercial digital prints new growth segment
CeWe Color is achieving great success in its range of digital print
services for consumers with its CEWE PHOTO BOOK and has progressed to
become the largest supplier in the field of first-class quality digital
prints in Europe. Commercial users such as corporations and small business
are now to be able to benefit from this range of services as well. CeWe
began to open up this market with the acquisition of diron six months ago.
Rolf Hollander: 'The initial integration phase has now been completed and
we have commenced with production for commercial users.'
Financial Diary:
28 May 2009 Annual General Meeting, Park Hotel, Bremen (10.00 a.m.)
25 August 2009 2009 mid-year report
09 November 2009 German Equity Forum, Frankfurt am Main
24 November 2009 2009 nine-month report
About CeWe Color: Photo service company CeWe Color, with 13
highly-technical production operations and a staff of around 2,800
employees in 24 European countries, is both market and technological
leader. The company supplied around 2.6 billion photos, more than 2.6
million CEWE PHOTO BOOKS and photo gift articles to more than 50,000 retail
partners in 2008. In 2008 turnover amounted to EUR 420.0 million. CeWe
Color is 'first mover' in the launch of new digital technologies, for
example ordering digital photos in the Internet or with the help of order
terminals (DigiFoto Makers) in retail stores. Sales of personalised CEWE
PHOTO BOOKS are developing extremely well. 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.
Should you have any queries, please contact:
CeWe Color Holding AG, Dr. Hella Hahm (-400) or Axel Weber (-552)
Tel.: 0441 / 404 - 2288, Fax: 0441 / 404 - 421,
Email: IR@cewecolor.de, Internet: www.cewecolor.de or www.cewe-fotobuch.de
DGAP 20.05.2009
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Language: English
Issuer: CeWe Color Holding AG
Meerweg 30-32
26133 Oldenburg
Deutschland
Phone: +49 (0)441 40 4-1
Fax: +49 (0)441 40 4-42 1
E-mail: IR@cewecolor.de
Internet: www.cewecolor.de
ISIN: DE0005403901
WKN: 540390
Indices: SDAX
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard);
Freiverkehr in Hannover, München, Hamburg, Düsseldorf,
Stuttgart
End of News DGAP News-Service
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DGAP-News: CeWe Color: Q1 on target - annual projections confirmed
| Source: EQS Group AG