Ceconomy (CEC) Q3 2024 earnings summary

Executive summary

• Achieved sixth consecutive quarter of growth, with strong sales and profitability momentum in Q3 and 9M, driven by both brick-and-mortar and online channels, and substantial market share gains, especially in Western, Southern, and Eastern Europe.

• Strategy execution led to higher sales, especially during the European Football Championship, and a new peak in customer satisfaction.

• Enhanced customer experience through sustainability initiatives, private label expansion, and omni-channel strategy.

• Expansion of omnichannel platform with planned acquisitions in Switzerland and partnerships in Italy.

• Rigorous cost control and liquidity management strengthened financial stability.

Financial highlights

• Q3 sales grew 6.6% year-over-year to €4,918m, with like-for-like sales up 5.2%; 9M sales reached €17,236m (+5.2% YoY pre-IAS 29).

• Adjusted EBIT in Q3 improved by €9 million to €-51 million; 9M adjusted EBIT up €53 million to €202 million.

• Free cash flow in Q3 increased by €100 million year-over-year; 9M free cash flow was €131 million, down from €281 million prior year.

• Reported EPS for Q3 improved by €0.05 to -€0.33; 9M EPS turned positive at €0.14.

• Net profit for the nine months increased by €174 million to €69 million.

Outlook and guidance

• Upgraded sales outlook for FY 2023/24 to moderate growth (above 3%), mainly from Western, Southern, and Eastern Europe.

• Adjusted EBIT guidance reaffirmed at €290–310 million, driven by Western/Southern Europe.

• Continues to expect a decline in Eastern Europe due to challenging consumer electronics market.

• Expectation of positive free cash flow for the full year.