In This Article:
-
Sales Growth: 9.5% increase compared to the previous year.
-
Like-for-Like Sales Growth: 7.8% increase.
-
Adjusted EBIT: EUR 279 million, a 13% increase.
-
Net Promoter Score: Increased by 3 points to 59.
-
Online Sales Growth: 15.9% increase.
-
Online Sales Share: Improved by 210 basis points to 28.6%.
-
Marketplace Growth: 90% increase in gross merchandise value (GMV).
-
Retail Media Income: More than doubled, aiming for EUR 100 million mid-term.
-
Free Cash Flow: EUR 1.5 billion in Q1.
-
IT Sales Growth: 12% increase.
-
Mobile Segment Growth: 12% increase.
-
Domestic Appliances Growth: 8% increase.
-
Store Openings: 21 Xpress stores and 8 Smart stores opened.
-
Adjusted EPS: Increased by EUR 0.40 year over year.
-
Gross Profit Increase: Roughly EUR 90 million.
-
Adjusted OpEx Ratio: Improved by 50 basis points.
-
Tax Rate: 11.3% underlying tax rate.
Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Ceconomy AG (MTAGF) delivered a strong Q1 performance with a 9.5% increase in sales and a 7.8% like-for-like growth.
-
The company gained significant market share, particularly in Germany, with an increase of 110 basis points.
-
Online sales surged by 15.9%, and the online conversion rate improved by 6%, highlighting the success of their omnichannel strategy.
-
Growth businesses, including Services & Solutions and Marketplace, contributed significantly to profitability, with Marketplace GMV growing by 90%.
-
Ceconomy AG (MTAGF) achieved an 8th consecutive quarter of positive adjusted EBIT growth, increasing by 13% to EUR279 million.
Negative Points
-
The company faced challenges in Poland, losing sales and market share in a highly competitive market.
-
Gross margin decreased by 40 basis points due to competitive pressures during the peak season.
-
Despite strong sales growth, the Polish market remains a concern, requiring structural measures and a new management team.
-
The company recorded a EUR29 million impairment for Poland, impacting nonrecurring items.
-
Ceconomy AG (MTAGF) faces ongoing volatility and competitive pressures in the market, particularly in the DACH region.
Q & A Highlights
Q: Could you please give us some color about the German performance as well as the competitive environment? What can we expect in terms of financial results for the full year? And what are the countries where you lost market share? A: (Kai-Ulrich Deissner, CFO) In Germany, we saw good market share gains and a strong improvement in profitability despite a volatile market. For the full year, we expect a small improvement in financial results compared to the prior year, with some headwinds from refinancing and interest rates. Poland is the main market where we faced headwinds, but we have implemented long-term measures to address this.