Ceconomy (CEC) Q2 2025 earnings summary

Executive summary

• Achieved 5.9% sales growth in H1 and 1.3% in Q2 year-over-year, with 0.8% like-for-like growth in Q2, despite market volatility and leadership changes.

• Adjusted EBIT rose €36m to €289m in H1 and €4m to €10m in Q2, marking the ninth consecutive quarter of EBIT growth.

• Online sales and growth businesses (Services & Solutions, Marketplace, Retail Media, Private Label) expanded significantly, driving profitability and market share gains.

• CEO transition as Karsten Wildberger left for a government role; Dr. Kai-Ulrich Deissner appointed interim CEO, with continuity in strategy emphasized.

• Strategic focus on innovation, omnichannel expansion, customer experience, and sustainability continues to drive performance.

Financial highlights

• H1 sales: €12.8bn (+5.9% YoY pre-IAS 29); Q2 sales: €5.2bn (+1.3% YoY pre-IAS 29).

• Adjusted EBIT: €289m in H1 (+€36m YoY), €10m in Q2 (+€4m YoY).

• Net result H1: €110m (down from €231m YoY); EPS H1: €0.23 (down from €0.48 YoY); Q2 EPS: €-0.08.

• Free cash flow H1: €-171m, mainly due to higher inventory and soft demand; net debt: €-1,763m (up €52m YoY).

• Gross margin Q2: 18.4% (+50bp YoY); H1: 17.5% (+0.2pp YoY).

Outlook and guidance

• FY 2024/25 guidance confirmed: moderate increase in adjusted sales and clear increase in adjusted EBIT, with all segments contributing.

• EBIT improvement expected mainly from DACH and Western/Southern Europe; Eastern Europe expected to decline.

• Anticipate positive free cash flow for the full year.

• Key growth drivers include AI-enabled products, gaming (Nintendo Switch 2), and emerging categories like smart glasses.