Ceconomy (CEC) Q1 2025 earnings summary

Executive summary

• Achieved 9.5% year-over-year sales growth in Q1 2024/25, with 7.8% like-for-like growth and significant market share gains, especially in Germany (+110 bps).

• Marked the eighth consecutive quarter of positive Adjusted EBIT growth (+13% to €279 million), with strong free cash flow of €1.5 billion and a 14% increase in adjusted EPS to €0.39.

• Omnichannel strategy drove 15.9% online and 7.2% brick-and-mortar sales growth, with online share rising to 28.6%.

• Growth businesses (Services & Solutions, Marketplace, Retail Media, Private Label) now contribute about one-third of gross profit and are key EBIT drivers.

• Customer satisfaction improved (NPS up 3 points year-over-year), supported by new omnichannel features and AI-enabled product categories.

Financial highlights

• Q1 sales reached €7.6 billion, up from €6.98 billion year-over-year; adjusted EBIT rose to €279 million (+12.8%), with margin up 20 bps to 3.7%.

• Gross margin declined 40 bps to 17.2% due to competitive pressures and product mix, while OPEX ratio improved by 50 bps to 14.2%.

• Adjusted EPS up €0.04 year-over-year to €0.39 (+14%); reported EPS stable at €0.30.

• Free cash flow robust at €1.5 billion, supported by improved working capital and tax inflows.

• Net debt reduced to €101 million; net liquidity (excl. leases) at €1.58 billion.

Outlook and guidance

• Confirmed positive outlook for FY 2024/25, expecting 3-5% sales growth and clear increase in adjusted EBIT, with consensus at €360 million.

• All segments anticipated to contribute to sales growth, with EBIT improvement led by DACH and Western/Southern Europe.

• Confident in achieving midterm targets, including €500 million EBIT and 2.5% margin by 2025-2026.

• Dividend payout of up to 25% of EPS targeted with midterm goals.

• Outlook excludes non-recurring effects, portfolio changes, and equity-method earnings.