DGAP-News: CEWE confirms targets for 2014

| Source: EQS Group AG
DGAP-News: CEWE Stiftung & Co. KGaA / Key word(s): Quarter Results
CEWE confirms targets for 2014

13.05.2014 / 07:00


CEWE confirms targets for 2014

  - Sales, turnover and income in Q1 2014 on target

  - CEWE PHOTO BOOK increases by 3.6%

  - Online printing grows by 26.6%  

  - EBIT improves by 2.4 million euros in comparison to Q1 2013

  - Capital ratio increase to more than 50%

Oldenburg, 13 May 2014. CEWE Stiftung & Co. KGaA (SDAX, ISIN: DE
0005403901) has confirmed its targets for the 2014 business year after the
first quarter of 2014. For the EBIT, EBT and annual net profit the Board of
Management expects to see earnings improving by around three million euros
in each case in comparison to the target figures for 2013. In the typically
weakest quarter of the year, CEWE increased its earnings by as much as 2.4
million euros, and is thus well on the way to reaching its targets. "We are
confirming our targets for 2014 on the basis of the results achieved so
far," says Dr. Rolf Hollander, Chairman of the Board of Management of CEWE
Stiftung & Co. KGaA. The turnover, at 101.2 million euros (Q1 2013: 106.6
million euros), has been reduced by 5.1 percent, primarily as a result of
abstaining from low-margin retail business, while the EBIT has improved to
amount to -4.0 million euros (Q1 2013: -6.4 million euros). Expenditure for
restructuring in the amount of 2.3 million euros had still had an effect on
the figure for the previous year. CEWE is now generating by far the
greatest share of earnings in the fourth quarter (EBIT Q4 2013: 33.5
million euros). In the first quarter of 2014, online printing continued to
develop strongly, increasing by 26.6% to 16.3 million euros. For the whole
of 2014, CEWE is aiming for an increase in turnover to more than 70 million
euros in this business segment. The volume of CEWE PHOTO BOOKS sold also
increased over that of the previous year in the first quarter, by 3.6% to
1.142 million books (target corridor for 2014: between +1% and +2%). In an
annual comparison, equity increased from 122.5 million to 135.5 million
euros, and the capital ratio rose from 44.6% as at 31 March 2013 to 50.2%
as at the end of the quarter of the report.

Photofinishing EBIT improved by 2.4 million euros
In the first quarter, turnover generated by photofinishing, at 68.5 million
euros, was exactly in the target corridor ranging from 67.5 to 69.4 million
euros (Q1 2013: 69.2 million euros). Photofinishing business was positively
affected by the order-promoting prolonged winter period in the previous
year. This makes it all the more remarkable that the business segment of
photofinishing almost reached the good turnover level of the previous year,
in spite of a mild, shorter winter period. Demand for the CEWE PHOTO BOOK
played a major role in this case. On the basis of the unchanged positive
trend from "mass to class", turnover per photo rose by 2.6% in comparison
to the same quarter of the previous year, to 14.60 eurocents per photo.
CEWE improved its EBIT in the business segment of photofinishing over that
of the previous year by 2.4 million euros to -2.1 million euros, mainly
because expenses for restructuring were no longer incurred (Q1 2013: -4.5
million euros). First-quarter losses are an integral part of the seasonal
profile for photofinishing, which is increasingly generating its turnover
and in particular its earnings on the basis of the ongoing seasonal shift
into the fourth quarter of each year.
Online printing continues to grow strongly
In the first quarter of 2014, turnover generated by the business segment of
online printing rose from 12.9 million euros in the same quarter of the
previous year to 16.3 million euros - an increase of 26.6%. "We will also
be investing more in marketing online printing in 2014, in order to be able
to benefit from a larger customer base in future. The fact that turnover
continues to grow strongly is confirmation of this strategy," Dr. Hollander
emphasises. In spite of slightly higher marketing expenses, as well as
increased delivery costs as a result of a growth in international business
and increased depreciation, EBIT for the business segment of online
printing, at -1.2 million euros, was almost exactly at the same level as in
the previous year (Q1 2013: -1.2 million euros). The EBIT margin improved
from -9.4% in the same quarter of the previous year to -7.5% in the first
quarter of 2014, relative to the significant increase in turnover.

Retailing EBIT stable
In the first quarter of 2014, CEWE retailing discontinued its low-margin
wholesale business, which had generated considerable sales in the previous
year, but had at the same time hardly contributed to earnings. Earnings are
thus not negatively affected by the resulting decline in turnover. The
business segment of retailing achieved exchange-rate adjusted turnover in
the amount of 17.5 million euros (Q1 2013:  24.6 million euros), hence
generating EBIT in the amount of -689,000 euros, which is equivalent to
that of the previous year (Q1 2013: -657 thousand euros).

Outlook: Targets for 2014 confirmed and dividend to be increased again  
The Board of Management confirms the defined targets for turnover and
earnings in the light of the first-quarter results. With turnover slightly
increased, CEWE intends to achieve a further increase in earnings in spite
of advance payments for the growing online printing market. In 2014 the
consolidated turnover in all the business segments is to increase from
528.6 million euros to 525 to 540 million euros. In the high-margin segment
of photofinishing, the Board of Management expects the earnings quality to
rise further with turnover approximately stable. If possible, a likely
decline in retailing turnover is to be more than offset by the expected
increase in turnover generated by online printing. The management expects
turnover generated by online printing to grow to more than 70 million euros
in 2014 (i.e. a rise of at least 17% against the previous year; Q1 2014: an
increase of 26.6% over the previous year). The earnings corridors are three
million euros higher than in the previous year. The EBIT in 2014 is to be
in the range of 30 million to 36 million euros, and the EBT is to amount to
28 million to 34 million euros. After-tax earnings are to be in the range
of 19 million to 23 million euros. The resulting earnings per share of 2.84
to 3.45 euros (2013: 3.29 euros) would enable the dividend to be increased
again. The Board of Management and the Supervisory Board will be proposing
to the Annual General Meeting on 4 June that the dividend be increased to
1.50 euros per share. Dr. Rolf Hollander: "Given the exceptionally sound
financing and the consistently positive development, we are pleased to be
able to increase the dividend for the fifth time in succession."


CEWE [in EUR m.]            Q1-2013     Q1-2014     Diff. %     Diff. abs.
(1) Photofinishing (PF)
Turnover                    69.2        68.5        -1.0%       -0.7
EBIT                        -4.5        -2.1        +53.3%      +2.4
EBIT margin                 -6.5%       -3.1%
(2) Retailing (R)
Turnover                    24.6        16.4        -33.1%      -8.1
EBIT                        -0.7        -0.7        -4.9%       -0.03
EBIT margin                 -2.7%       -4.2%
Core business (PF + R)
Turnover                    93.7        84.9        -9.4%       -8.8
EBIT                        -5.2        -2.8        +45.9%      +2.4
EBIT margin                 -5.5%       -3.3%
(3) Online printing
Turnover                    12.9        16.3        +26.6%
EBIT                        -1.2        -1.2        -0.8%
EBIT margin                 -9.4%       -7.5%
CEWE Group [in EUR m.]
Turnover                    106.6       101.2       -5.1%
EBIT                        -4.0        -6.4        +37.0%
EBIT margin                 -6.0%       -4.0%
ROCE                        15.4%       16.6%



(1) Photofinishing:  Production and sale of photo products such as the CEWE
PHOTO BOOK, photo greeting cards, calendars, wall decorations and
individual (analogue and digital) photos as well as other photo products

(2) Retailing: Trading in CEWE's own retail stores in Norway, Sweden,
Poland, the Czech Republic and Slovakia with photo hardware such as cameras
and lenses

Core business: Aggregate of photofinishing and retailing

(3) Online printing: Production and sale of commercial print products in
the online printing portals at CEWE-PRINT.de, Saxoprint.de and Viaprinto.de

Percentage deviations have all been calculated at the exact values.


Should you have any queries, please contact:
CEWE Stiftung & Co. KGaA, Axel Weber (Investor Relations)
Tel.: 0441 / 404 - 2288, Fax: 0441 / 404 - 421, Email: IR@cewe.de

Internet: www.cewe.de , www.cewe-fotobuch.de , www.cewe-print.de ,
www.viaprinto.de , www.saxoprint.de

In the app stores: In addition to the CEWE PHOTO WORLD app (app for
ordering most of the CEWE products), the CEWE Investor Relations app for an
iPad(R) or android tablet is available and includes annual and quarterly
reports, presentations and the sustainability reports.

Financial schedule:
4 June 2014                 Annual General Meeting, Weser-Ems-Halle,
13 August 2014          Publication of the H1 2014 half-year financial
13 August 2014          Analysts' telephone conference on H1  
19 September 2014   Capital Market Day @ photokina, Cologne
12 November 2014   Publication of the Q3 2014 interim report  
12 November 2014   Analysts' telephone conference on Q3
24 November 2014   German Equity Forum, Frankfurt

About CEWE: The photo and online print service company CEWE, with 11
highly-technical production operations and a staff of around 3,200
employees in 24 European countries, is both market and technological
leader. In 2013 CEWE delivered around 2.37 billion prints, 5.8 million
copies of the CEWE PHOTO BOOK and photo gift articles to more than 34,000
retail partners to generate consolidated turnover of 528.6 million euros.
CEWE is a "first mover" in the introduction of new digital technologies and
products. In the new business segment of online printing, printed material
for advertising is marketed through the sales platforms CEWE-PRINT.de ,
saxoprint and viaprinto. In 1961 CEWE was founded by Senator h. c. Heinz
Neumüller. The company went public under the leadership of Hubert Rothärmel
in 1993. CEWE Stiftung & Co. KGaA is listed on the SDAX.

End of Corporate News


13.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de


Language:    English                                                   
Company:     CEWE Stiftung & Co. KGaA                                  
             Meerweg 30-32                                             
             26133 Oldenburg                                           
Phone:       +49 (0)441 40 4-1                                         
Fax:         +49 (0)441 40 4-42 1                                      
E-mail:      IR@cewe.de                                                
Internet:    www.cewe.de                                               
ISIN:        DE0005403901                                              
WKN:         540390                                                    
Indices:     SDAX                                                      
Listed:      Regulierter Markt in Berlin, Frankfurt (Prime Standard);  
             Freiverkehr in Düsseldorf, Hamburg, Hannover, München,    
End of News    DGAP News-Service  
267955 13.05.2014