DGAP-News: CEWE planning its twelfth consecutive dividend increase

CEWE planning its twelfth consecutive dividend increase

• Strong Christmas business in the core business segment of photofinishing in 2020
• Group turnover rises to 727.3 million euros (2019: 720.4 million euros)
• Group EBIT increases substantially: 79.7 million euros (2019: 56.8 million euros)
• Dividend to increase for the twelfth time in succession: 2.30 euros per share

Oldenburg, 22 January 2021. CEWE Stiftung & Co. KGaA (SDAX, ISIN: DE 0005403901) concluded its 2020 financial year with a clear increase in earnings according to initial, as yet uncertified, figures which show operative earnings (EBIT) at 79.7 million euros (2019: 56.8 million euros). Turnover rose to 727.3 million euros (2019: 720.4 million euros). Renewed growth in photofinishing played a decisive role in the outstanding Christmas business, with stimulated online business as well as the stay-at-home effect resulting in growth for all the product categories in the CEWE core business segment: sales of CEWE PHOTOBOOKS, photo calendars, wall art, greeting cards and many other photo gifts went up in the Christmas season. Besides additional contribution margins from the rise in sales, the cost-reduction programme, initiated as early as in March at the onset of the pandemic, also improved the EBIT against that of the previous year. Photofinishing thus clearly more than compensated for the negative impact of the retailing and commercial online printing business segments which were hard hit by coronavirus and the related lockdown. On the basis of the growth in earnings, the dividend for the financial year is to be increased to 2.30 euros (previous year: 2.00 euros). Provided that approval is given at the Annual General Meeting, this will be the twelfth consecutive dividend increase. This makes CEWE one of the few German companies to be able to consistently raise dividends over a period covering so many years.

First-class delivery performance in Q4

Brisk Christmas business remained a reliable constant for CEWE, even in the virtually unpredictable financial year of 2020, with Q4 2020, at turnover in the amount of 314 million euros (Q4 2019: 293.2 million euros), delivering a clear increase in earnings to EBIT in the amount of 80.3 million euros (Q4 2019: 58.8 million euros). This saw CEWE benefiting considerably from its early transformation to a digital business model: by far the largest proportion of photo orders nowadays is placed online or even remotely with the help of apps, an effect that was given an extra boost by the pandemic. This is especially true for CEWE Group retail partners, who were impaired in more ways than one by the virus but for whom it was also possible to have more and more online orders delivered to homes by mailorder.

Growth on a diversified basis

This does not mean that growth in the field of photofinishing is only based on its main product, the CEWE PHOTOBOOK; the other product groups such as photo calendars, wall art, greeting cards and many more photo gifts also all raised turnover. Sales of the CEWE PHOTOBOOK, at 6.52 million books (2019: 6.62 million books), and the total number of prints across all the products, at 2.34 billion prints (2019: 2.40 billion prints), fell slightly short of those of the previous year. More than anything else, a coronavirus-related change in attitudes towards photography among many consumers resulted in fewer photos being taken in 2020 and hence to fewer photos being available for photo products.

Stable development in difficult times for the economy in general

"Particularly in these pandemic times, the loyalty of our customers and the outstanding work performed by our staff are of inestimable value. Customers made very conscious decisions in favour of our top-class photo products, even during the stay-at-home phase caused by the pandemic. We really are proud of how superbly the CEWE team collaborated to get attractive photo gifts ready for our customers, especially during this somewhat different Christmas season," emphasises Dr. Christian Friege, CEWE Stiftung & Co. KGaA CEO.

Dividend to increase for the twelfth time in succession

On the basis of preliminary results for the 2020 financial year the Board of Management of CEWE Stiftung & Co. KGaA resolved to propose to the Supervisory Board that the dividend for each eligible share be raised to 2.30 euros (dividend for the 2019 financial year: 2.00 euros). Subject to the approval of the Supervisory Board in its meeting on the financial statements on 17 March 2021 and of the shareholders at the Annual General Meeting on 9 June 2021, the proposed dividend of 2.30 euros a share is equivalent to a dividend yield of 2.5% on the basis of the year-end share price of 92.50 euros. It is the twelfth consecutive dividend increase as well as being the highest dividend in the history of the company.

Full year of 2020 in comparison to the previous year (preliminary figures)

Q4 2020 (preliminary figures)

Exact values have been used for all percentage deviation calculations.

Details on the financial year of 2020 are all based on preliminary, as yet uncertified data. Audited annual financial statements will all be presented at the Annual Report and analysts' press conference on 25 March 2021.

 

Should you have any queries, please contact:
CEWE Stiftung & Co. KGaA, Axel Weber (Investor Relations)

Tel.: 0441 / 404 - 2288, Fax: 0441 / 404 - 421, Email: [email protected]


Internet: cewe.de , deindesign.de , whitewall.com , cheerz.com ,
cewe-print.de , viaprinto.de , saxoprint.de, laser-line.de

The CEWE apps are all available in the app stores: CEWE PHOTO WORLD, CEWE POSTCARD and other photo apps, and the CEWE Investor Relations app for iPad(c) or android tablets, with annual reports and quarterly reports, presentations and sustainability reports.

Financial schedule

(insofar as already scheduled)


24.02.2021 ODDO BHF Small & Mid Cap Conference

25.03.2021 CEWE 2021 Annual Report and analysts' press conference

25.03.2021 Publication of the 2020 Annual Report

12.05.2021 Publication of the 2021 Q1 interim communication

12.05.2021 Press release on Q1 2021

9.06.2021 2021 Annual General Meeting

10.06.2021 Warburg Highlights Conference

10.08.2021 Publication of the 2021 HY1 interim report

10.08.2021 Press release on 2021 HY1

21.09.2021 2021 Berenberg & Goldman Sachs German Corporate Conference

23.09.2021 2021 Baader Investment Conference

12.11.2021 Publication of the 2021 Q3 interim communication

12.11.2021 Press release on Q3 2021

22.11.2020 German Equity Forum

About CEWE:

The CEWE Group is Europe's leading photo service and online printing supplier.

From its beginnings in 1912, CEWE has progressed to become the leading photo service company for all those wanting to make more of their photos. This is mainly due to the much-awarded CEWE PHOTOBOOK, with more than six million books being sold each year. Customers can purchase other personalised photo products under the brand names of CEWE, WhiteWall and Cheerz - and from many leading retailers in Europe. Concerning their personal photos, they are inspired to produce a variety of creative designs and they trust the company with more than 2.3 billion photos every year.

The CEWE Group has also set up a highly efficient production system for the online printing market, which is still new. Every year billions of high-quality printed products are delivered reliably to their purchasers through the SAXOPRINT, LASERLINE and viaprinto sales platforms.

The CEWE Group, through the founder family of Neumüller as an anchor shareholder, focuses on sustainable corporate management and has already received many awards for this effort: economically sustainable in the long term; cooperative and fair in dealings with customers, employees and suppliers; socially responsible and protective of the environment and resources. An example of this is the climate-neutral process used to produce all the CEWE brand-name products.

The CEWE Group has a staff of 4,000 employees and operates in more than 20 countries. CEWE is listed on the SDAX.

More information is available at company.cewe.de.