DGAP-News

CEWE on target for 2014 after first half year - Seite 2

of increased start-up investments for marketing expenses and depreciation
on machinery, from - 2.0 million euros to -1,9 million euros. The EBIT
margin improved markedly due to the higher level of turnover, from -7.2% in
the same quarter of the previous year to -5.7% in the first six months of
2014. "The increase in the number of new customers and our satisfied
regular customers are an excellent basis for our future growth," Dr.
Hollander emphasises.


Photofinishing EBIT improved by around 3 million euros
In the first half year of 2014, the CEWE PHOTO BOOK volume, with an
increase of 2.9% to 2.26 million, exceeded the target corridor of an
increase of 1 to 2% for the year as a whole. This is again confirmation of
the trend towards added value products, which has once again largely
compensated for the 3.7% decrease in the absolute number of photos
produced, to 932.2 million. Due to the renewed increase in the turnover per
photo, of 2.8% to 14.75 euro cents, turnover in the photofinishing segment
remained virtually consistent at 137.5 million euros (1H 2013: 138.8
million euros). In spite of the continuing seasonal shift to the fourth
quarter - demand for photo products in the photofinishing segment which are
to be used as Christmas gifts is increasing - the EBIT improved by around
three million euros to - 4.3 million euros, also because of the expenditure
for restructuring included in the previous year.

Retailing EBIT almost stable in spite of scheduled decrease in turnover
As already announced, CEWE retailing discontinued its hardware wholesale
business in the first half year of 2014. The high volume of turnover
relating to the business hardly contributed to earnings in the previous
year. With turnover reduced by 37.3% to 32.7 million euros, the retailing
segment EBIT, at - 1.1 million euros, was almost the same as in the
previous year.

Return on equity rises significantly: ROCE improves to an extremely sound
17.0%
After 13.7% in the previous year, the return on capital employed (ROCE) on
a 12-month basis reached an extremely sound level of 17.0% as at 30 June
2014. The capital ratio was 53.4%. CFO Dr. Olaf Holzkämper: "By selling
our own shares we have not only raised our free float to 70.1%; we have at
the same time continued to increase our capital ratio and reduce our debts.
We have thus increased our strategic scope and are now in a position to
strengthen the company through acquisitions when attractive opportunities
arise, in the business segments of online printing and photofinishing, as
well as in the neighbouring business segments.