Ceconomy AG (MTAGF) Q4 2024 Earnings Call Highlights: Strong Growth in Revenue and EBIT Amid ...

In This Article:

  • Revenue: Increased by 5.3% to EUR22.4 billion.

  • Adjusted EBIT: Grew by 26% to EUR305 million.

  • Free Cash Flow: Reached EUR119 million, an increase of EUR742 million.

  • Net Promoter Score (NPS): Improved by 8 points to 58.

  • Market Share: Increased by 40 basis points last year.

  • Services and Solutions Income: Grew by 12%.

  • Net Sales: Grew by 5.3% to EUR22.4 billion.

  • Adjusted EBIT Margin: Reached 1.4%, 30 basis points above the previous year.

  • EPS: Increased by EUR0.24.

  • Online Share: Grew to 24% in the '23-'24 fiscal year.

  • Store Modernization: 64% of stores fully modernized.

  • Stock Reach: Reduced by 10% to 9.3 weeks.

  • Operational Services and Solutions Income: Increased by 17% to EUR167 million.

  • Gross Merchandise Value (GMV): More than doubled to EUR277 million.

  • Private Label Share: Reached 2.7% in '23-'24.

  • Retail Media Income: Achieved EUR48 million in '23-'24.

  • Gross Margin: Increased by 10 basis points for the full year.

  • Adjusted OpEx Ratio: Decreased to 17.4% of group sales for the full year.

  • Leverage Ratio: Improved to 1.7 net debt to adjusted EBITDA.

  • Liquidity Reserves: Cash position of more than EUR1 billion, up 13% year-over-year.

Release Date: December 18, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Ceconomy AG (MTAGF) reported seven consecutive quarters of growth in both sales and EBIT, demonstrating strong consistency.

  • The company achieved a significant increase in adjusted EBIT by 26% to $305 million, driven by operational improvements and growth businesses.

  • Ceconomy AG (MTAGF) successfully refinanced its corporate bond with a new sustainability-linked bond, securing debt financing until 2029.

  • The company reported a substantial increase in customer satisfaction, with the net promoter score reaching a year-on-year high of 58.

  • Ceconomy AG (MTAGF) achieved a 12% growth in services and solutions income, highlighting the strategic importance of this business area.

Negative Points

  • The German market remains soft, with challenges in maintaining sales growth amid a competitive environment.

  • Despite overall positive results, the company faces a volatile market environment, particularly in Germany.

  • The gross margin was impacted by a competitive environment, especially in Turkey, due to market normalization and price pressure.

  • The company anticipates only a moderate increase in sales for the upcoming financial year, reflecting ongoing market challenges.

  • Ceconomy AG (MTAGF) faces potential headwinds in financial results due to the full impact of the new bond and lower expected dividends from Metro.