Ceconomy (CEC) Q4 2024 earnings summary

Executive summary

• Achieved strong results in FY 2023/24, with net sales of €22.4bn up 5.3% YoY and adjusted EBIT of €305m up 26%, marking seven consecutive quarters of sales and EBIT growth despite a challenging market.

• Transformation to an omnichannel, service-oriented platform accelerated, with growth businesses (Services & Solutions, Marketplace, Private Label, Retail Media) now contributing 32% of gross profit.

• Customer satisfaction reached a record NPS of 58 (+5 YoY), and loyalty membership rose to 43 million.

• Market share increased by 40 basis points both online and offline, with gains in most countries, especially in Western/Southern and Eastern Europe.

• Financial stability enhanced through strict cost control, prudent liquidity management, and successful refinancing of a €500m sustainability-linked bond.

Financial highlights

• Net sales grew by 5.3% year-over-year to €22.4bn, with like-for-like growth of 4.1%.

• Adjusted EBIT increased by 26% to €305m, with a margin of 1.4% (up 30bps YoY).

• Free cash flow was €119m, down from €257m last year due to higher working capital.

• EPS improved to €0.16 from -€0.08, with adjusted EPS at €0.22.

• Gross margin improved to 18.0% (+10bp YoY), OPEX ratio stable at 17.4%.

Outlook and guidance

• Expects moderate sales growth and a clear improvement in adjusted EBIT for FY 2024/25, with all regions contributing.

• EBIT improvement led by DACH and Western/Southern Europe; Eastern Europe expected to face sector challenges.

• Guidance aligns with midterm targets, aiming for €500m adjusted EBIT by FY 2025/26.

• Growth businesses and cost efficiencies are expected to drive future EBIT increases.

• Black Friday and seasonal campaigns delivered a strong start to FY 2024/25.