CEWE Stiftung & Co. (CWC) Q3 2024 earnings summary

Executive summary

• Group turnover for Q1-3 2024 increased by €28.4 million (+6.3%) to €481.6 million year-over-year, with EBIT up €3.2 million (+137%) to €5.5 million, both exceeding internal expectations and slightly above plan.

• Q3 2024 turnover rose 4.2% to €164.4 million, with EBIT at €0.1 million, reflecting higher marketing investments and the seasonally neutral quarter.

• Annual targets for 2024 are confirmed: turnover up to €820 million and EBIT up to €87 million, with management aiming for the upper end of the range.

• Management remains optimistic for the Christmas quarter, traditionally the strongest period.

Financial highlights

• Q1-3 2024 group turnover: €481.6 million (+6.3% year-over-year); EBIT: €5.5 million (+137%).

• Photofinishing Q1-3 turnover: €396.3 million (+8.5%); EBIT: €4.9 million (+169%).

• Commercial Online-Print Q1-3 turnover: €64.2 million (-3.0%); EBIT: €2.0 million (+32.3%).

• Retail Q1-3 turnover: €21.0 million (-3.4%); EBIT: -€0.3 million (improved from -€0.4 million).

• Free cash flow for Q1-3 at -€50.8 million, reflecting seasonal investments and higher tax payments.

Outlook and guidance

• Full-year 2024 targets reaffirmed: turnover up to €820 million, EBIT up to €87 million, with management focusing on the upper end of the range.

• Q4 is expected to be decisive; matching last year's Q4 would achieve the upper end of targets.

• Earnings per share guidance: €7.26–8.22 for 2024.

• Planned investments for 2024 are now expected to be around €60 million, below the initial €65 million forecast.