DGAP-News: CEWE with a slight improvement in earnings at mid-year

CEWE with a slight improvement in earnings at mid-year

• H1 EBIT rises to 2.1 million euros (H1 2020: 1.0 million euros), turnover reaches 262.6 million euros (H1 2020: 277.0 million euros)
• As expected, the previous year's coronavirus-related extraordinary development in photofinishing is not repeated
• Commercial Online-Print and Retail significantly improve earnings
• Management confirms outlook for 2021

Oldenburg, 10 August 2021. CEWE Stiftung & Co. KGaA (SDAX, ISIN: DE 0005403901) has ended the first half-year period of 2021 with a slight improvement in earnings: Operative earnings before tax and interest (EBIT) increased by 1.1 million euros to 2.1 million euros (H1 2020: 1.0 million euros). Group turnover, at 262.6 million euros, fell 5.2% short of the turnover generated in the same period of the previous year (H1 2020: 277.0 million euros). As expected, the coronavirus-related extraordinary development in the core business segment of photofinishing seen in the previous year was not repeated; on the contrary, the current easing of coronavirus restrictions dampened demand, with H1 2021 sales in the photofinishing business segment declining slightly by 3.0% to 218.5 million euros (H1 2020: 225.3 million euros), while the photofinishing EBIT reached 4.1 million euros (H1 2020: 8.4 million euros). The business segment Commercial Online-Print is benefiting from the recovery in business life due to the easing of coronavirus regulations and contributed considerably to consolidated earnings: EBIT achieved in commercial online printing improved in the first six months of 2021 by 2.6 million euros to -0.8 million euros (H1 2020: -3.4 million euros). Retailing also improved its earnings by 2.9 million euros, to EBIT in the amount of -0.7 million euros (H1 2020: -3.7 million euros) since non-recurring costs to be borne for the optimisation of stores in the previous year were no longer incurred. CEWE key balance sheet figures, traditionally extremely sound, continued to improve: the equity ratio increased to 59.8%, the total amount of capital employed returned an excellent 20.3% (ROCE).

Switch from coronavirus lockdown to coronavirus easing

influences demand for photofinishing products

In the business segment of photofinishing, the pandemic-related switch from lockdown in Q1 2021 to easing in Q2 2021 once again showed its impact on the development of demand: while CEWE, during the lockdown imposed in Q1 2021, still benefited from consumers having to stay at home in contrast to the (non-coronavirus) first quarter of the previous year, the effect was reversed in Q2 2021. At the beginning of the first lockdown in Q2 of the previous year, a particularly large number of people used the newly-gained time at home to order photo products or to catch up with photo projects, frequently those involving older pictures. This year, the opposite effect occurred at this time: with the easing of coronavirus regulations, people once again undertook more of the activities that had not been possible during lockdown. This resulted in a slight decline in sales overall in the first six months of 2021, by 3.0% to 218.5 million euros (H1 2020: 225.3 million euros), while the photofinishing EBIT reached 4.1 million euros (H1 2020: 8.4 million euros). "The development has not surprised us, we expected this to happen. Many people used the time they had during lockdown to order photo products online; now they are sooner enjoying the liberties they have regained for activities outside their own four walls. We are quite confident that this will have resulted in many attractive motifs and pictures for coming CEWE photo products in the second half of the year, including photo gift articles for Christmas," says Dr. Christian Friege, Chairman of the CEWE Stiftung & Co. KGaA Board of Management. Another reason to be optimistic: in spite of the slight decline in sales, the trend towards high-quality photo products continues. In H1 2021, turnover per photo rose by 6.0% to 24.54 eurocents (H1 2020: 23.15 eurocents).

CEWE Photo Award is once again the biggest photo competition in the world

With a record number of entries - 606,289 photos sent in from more than 170 countries - the CEWE Photo Award with its motto of "Our World is Beautiful" is once again the biggest photographic competition in the world. In September a top-class international jury headed by renowned French photographer Yann Arthus-Bertrand as jury president will choose the overall winner during a gala event in Berlin. As part of the photographic competition, CEWE will be donating 10 cents to SOS Children's Villages International for every photo sent in.

Three TIPA World Awards for the CEWE Group

The CEWE Group recently won as many as three Technical Image Press Association (TIPA) World Awards. TIPA World Awards are among the most prestigious awards in the industry. With its A2 Gold Edition photo calendar, CEWE was crowned "Best Photo Service Worldwide" and also came in first in the "Best Retail Finishing System Worldwide" category with its CEWE Photo Centre. WhiteWall added to the awards with the TIPA World Award for the WhiteWall RoomView function. With the prizes won so far, the CEWE Group now has altogether ten TIPA World Awards.

Commercial Online-Print improves earnings by 2.6 million euros

Even if the second quarter showed itself to be significantly improved for commercial online printing with turnover increasing by more than 25%, the first half-year period of 2021 was still perceptibly influenced by the coronavirus. Turnover in this period declined overall by 20.8% to 26.5 million euros (H1 2020: 33.4 million euros). Following the end of lockdown, there is hope in the perceivable normalisation of economic development which is also once again resulting in a rise in demand for printed advertising material. An optimised production and cost structure in commercial online printing had a positive effect on earnings in the business segment in spite of a difficult sales situation, with EBIT improving by 2.6 million euros to -0.8 million euros in the first six months of 2021 (H1 2020: -3.4 million euros). "The figures for the second quarter allow one to conclude that the business segment has possibly overcome the worst of the coronavirus impact, with chances of a sound income if demand continues to rise," Friege also points out.

Elimination of non-recurring costs for optimisation of the store structure

results in an improvement in CEWE Retail earnings

The positive effects of coronavirus easing are also apparent in the business segment of retailing: "In the second quarter we generated almost the same turnover as in the previous year with altogether 40 fewer stores. This has been confirmed to us as we focus on photofinishing and online business as well as on the associated reduction in our network of stores," says Christian Friege. In the first half year of 2021 as a whole, turnover at 13.8 million euros is 8.3% lower than that of the same period of the previous year (H1 2020: 15.1 million euros). In the previous year, 1.7 million euros in restructuring provisions and 1.5 million euros in allowances for inventories of stocks were still accrued for the optimisation of the store structure which has now been implemented. The EBIT for the business segment of retailing clearly improved in the first six months of 2021, by 2.9 million euros to -0.7 million euros (H1 2020: -3.7 million euros).

Outlook for 2021 confirmed

The CEWE management sees itself confirmed in its declared 2021 targets by the results returned for the first half-year period, and is sticking to its outlook for 2021: Group turnover should reach a figure in the range of 710 to 770 million euros. Group EBIT is expected to be in a corridor of 72 to 84 million euros in 2021, EBT in the range of 70 to 82 million euros, and after tax earnings between 48 and 56 million euros. With the Christmas business, the fourth quarter of a year remains by far the most important quarter. The targets for the 2021 financial year are roughly expected and the range reflects the uncertainty that is currently arising from the general corona situation and its potential effects on CEWE's business development.

An overview of 2021 H1 and Q2 results

Rounding differences may occur. Deviations have all been calculated at the exact values.

Notes to the "Earnings by Business Segment" chart

(1) Photofinishing: Production and sale of photo products such as the CEWE PHOTO BOOK, calendars, greeting cards, wall art and individual (analogue and digital) photos as well as other photo products
(2) Retail: Trading in photo hardware, such as cameras and lenses, in Norway, Sweden, Poland, the Czech Republic and Slovakia
(3) Commercial Online-Print: Production and sale of commercial print products in the online printing portals of SAXOPRINT, viaprinto and LASERLINE


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 FOTOWELT, CEWE POSTCARD and other photo apps, and the CEWE Investor Relations App for iPads(c) or android tablets, with annual reports and quarterly reports, presentations and sustainability reports.

Financial schedule

(insofar as already scheduled)


09.09.2021 2021 Dr. Kalliwoda Conference Madrid/Barcelona

21.09.2021 2021 Berenberg & Goldman Sachs German Corporate Conference

23.09.2021 2021 Baader Investment Conference

12.11.2021 Q3 2021 Interim communication and press release on Q3 2021

22.11.2021 German Equity Forum

06.01.2022 2022 Lyon ODDO BHF Forum

19.01.2022 2022 UniCredit Kepler Cheuvreux German Corporate Conference

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 advertising prints and business prints for the online printing market, which is still a new market. 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 21 countries. CEWE is listed on the SDAX. More information is available at company.cewe.de.