CEWE is planning another increase in turnover and earnings in 2023
Photofinishing again drives Group earnings with stronger Christmas business
In 2022, CEWE again presented many innovations around personal photo gifts for Christmas, such as the new XXL Advent calendar with Tony's Chocolonely®, the photo Advent calendar with poster collage, the "Nature" desk calendar made of 100% recycled paper, or the TIPA award-winning personalized slipcase for the CEWE PHOTOBOOK XL. In the reporting year, the CEWE PHOTOBOOK increased by 3.6% to a sales volume of 5.85 million copies (2021: 5.65 million copies). Likewise, the total number of photos across all products rose by 4.4% to 2.28 billion units (2021: 2.18 billion photos). In this context, the product mix also changed compared with the previous Corona year, when the "stay-at-home" effect led to even greater demand for high-quality single-photo products such as wall prints. The Corona normalization with the return of mainly international vacations, events, celebrations and parties led to many new photos among consumers in the past year, which CEWE successfully converted into its own business growth: thus, turnover in the core business segment photofinishing increased significantly by 26.0 million euros or +4.4% to 616.1 million euros (photofinishing turnover 2021: 590.1 million euros). Necessary price increases also supported the turnover growth and offset inflation-related cost increases. The operating result (EBIT) in photofinishing increased to a pleasing 73.7 million euros (photofinishing EBIT 2021: 71.2 million euros).
Commercial Online-Print with significant sales growth of 31.0% and improved earnings
In the past year 2022, Commercial Online-Print (COP) successfully translated the growing demand for commercial print products as Corona normalization progressed into a significant increase in sales with its "Best Price Guarantee" for its customers: Turnover increased by 31.0% year-on-year to 86.5 million euros. (2021: 66.0 million euros). Although the pre-pandemic turnover from 2019 has not yet been reached again, however, COP vs. 2019 shows a strongly improved EBIT in the amount of 2.3 million euros (EBIT before restructuring costs 2019: -2.7 million euros). Compared to the previous year 2021, Commercial Online Print also improves its EBIT contribution to the Group result by a pleasing 1.1 million euros, almost doubling the previous year's result (EBIT 2021: 1.2 million euros). The improvement in earnings is primarily the result of the consistent optimization of the production and cost structure of COP with its SAXOPRINT, viaprinto and LASERLINE brands in recent years.
Retail shows itself to be well positioned
The retail business segment also benefited from the recovery after the Corona restrictions in the past financial year and achieved a 3.9% increase in turnover to 32.4 million euros (2021: 31.2 million euros). At 0.2 million euros, the EBIT contribution of the CEWE retail business to the group result was at the level of the previous year (EBIT 2021: 0.2 million euros"). Thus, CEWE's retail business is also well positioned in 2022 with the optimized branch structure. The clear focus will continue to be on the sales of CEWE PHOTOBOOKS, calendars, greeting cards, wall pictures and other photo gifts. The turnover and earnings contribution of this photofinishing product portfolio is reported in the photofinishing business segment.
Strong results also planned for 2023
Group turnover in 2023 is expected to be in the range of 720 to 780 million euros. Group EBIT in 2023 is expected to be in the corridor of 70 to 82 million euros, EBT between 69 and 81 million euros, and after-tax earnings between 47 and 55 million euros. The ranges of these targets for the business year 2023 are about expected dimensions and reflect the uncertainties currently resulting from the inflation-related increase in the cost of sales and its potential effects on the development of CEWE's business. At present, the persistently high inflation has no influence on the ordering behavior of customers and thus on the development of CEWE's turnover.
Sustainability in focus: Thirteenth Sustainability Report published
CEWE takes a comprehensive view of sustainability - ecologically, economically and socially. Sustainable action has been deeply rooted at CEWE for a long time. The company has been reporting regularly on its sustainability initiatives and progress in this area since as early as 2010. Together with the Annual Report 2022, the new Sustainability Report is also available online at https://company.cewe.de or https://ir.cewe.de with immediate effect.
Dividend to increase for the fourteenth time in succession
On the basis of the results for the financial year 2022, the Executive Board and Supervisory Board have proposed to the Annual General Meeting that the dividend be increased to 2.45 euros per dividend-bearing share (dividend for the financial year 2021: 2.35 euros). Subject to shareholder approval at the Annual General Meeting scheduled for June 7, 2023, the dividend of 2.45 euros per share now proposed corresponds to a dividend yield of 2.8% based on the 2022 year-end share price of 88.70 euros. This is the fourteenth dividend increase in succession and also the highest dividend in the Company's history.
Fundamentally sound: Equity ratio rises to 57.3%, ROCE improves to 17.6%
After an already very solid level in the previous year (December 31, 2021: 56.0%), the equity ratio rose again to now 57.3% in 2022, thus underlining that CEWE continues to have an extremely stable position. The return on capital employed (ROCE) was significantly stronger in 2022 than in the comparable last pre-Corona year (ROCE 2019: 14.8%) and also slightly better than in the previous year (ROCE 2021: 17.5%).