DGAP-Adhoc: CECONOMY AG: Preliminary results for the 1st quarter of financial year 2017/18: EBIT below prior-year period; full year outlook confirmed

2018. január 18., csütörtök, 22:21





DGAP-Ad-hoc: CECONOMY AG / Key word(s): Quarter Results


CECONOMY AG: Preliminary results for the 1st quarter of financial year 2017/18: EBIT below prior-year period; full year outlook confirmed


18-Jan-2018 / 22:21 CET/CEST


Disclosure of an inside information acc. to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG.


The issuer is solely responsible for the content of this announcement.




Based on preliminary figures for the 1st quarter of financial year 2017/18, we expect CECONOMY Group to achieve an EBIT of around 260 million Euro compared to an EBIT before special items* of 308 million Euro in the respective prior-year period. On the basis of current information, this decline is primarily attributable to the following reasons:



  • Price reductions around Black Friday, in particular in Germany​, to support the leading market position. This resulted in a shift of December sales into the more competitive November. 

  • Negative technical effects due to last year"s planning-related higher accruals in Italy. These will be compensated over the course of the current year.

  • Costs for the build-up of the CECONOMY AG holding.

 



On the Group level, the change in net working capital* is likely to be around 380 million Euro lower compared to the respective prior-year period. This development was mainly caused by lower payables due to increased direct sourcing from suppliers. Moreover, higher levels of new stock, in particular in Germany, resulting from weaker-than-anticipated December sales as well as an increase in receivables impacted net working capital.



 



We expect CECONOMY Group"s sales to grow by +1.3% adjusted for exchange rate effects and portfolio changes. Reported sales increased by +0.6% from 6,893 million Euro to 6,935 million Euro (+0.5% on a like-for-like* basis).



 



At the same time, CECONOMY AG confirms its financial year 2017/18 outlook as published on December 19, 2017. In addition to ongoing operational improvements, the company expects a considerable earnings improvement in Italy. Furthermore, negative one-time effects in the prior year such as the SATURN VAT campaign in January and the insolvency of a business partner in the Netherlands will not recur. 



 



All figures reported herein are preliminary and unaudited. Full financial disclosure for the first quarter 2017/18 will be published on February 9, 2018 at 07:00 am CET.



 

 



Person making the notification: Sebastian Kauffmann, Vice President Investor Relations CECONOMY AG



 



 



* Like-for-like sales and Change in Net Working Capital (NWC) are defined in CECONOMY Group"s annual report 2016/17, pages 50 to 51. EBIT before special items is defined on pages 75 to 77. CECONOMY Group"s annual report 2016/17 is accessible at www.ceconomy.de/en.










18-Jan-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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Language: English
Company: CECONOMY AG

Benrather Straße 18-20

40213 Düsseldorf

Germany
Phone: +49 (0)211 5408-7223
Fax: +49 (0)211 6886-5500
E-mail: sebastian.kauffmann@ceconomy.de
Internet: www.ceconomy.de
ISIN: DE0007257503, DE0007257537, Weitere: www.ceconomy.de/de/investor-relations/
WKN: 725750, 725753, Weitere: www.ceconomy.de/de/investor-relations/
Indices: MDAX
Listed: Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange





 
End of Announcement DGAP News Service




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