Press Releases

CECONOMY to implement strategy more focused and faster – 2019 will be a year of transition

12/19/2018

  • Currency and portfolio adjusted sales in 2017/18 rose slightly by 0.2 per cent to €21.4 billion (as reported: -0.9 per cent)
  • EBIT excluding Fnac Darty at €399 million (previous year: €494 million before special items); EBITDA excluding Fnac Darty at €630 million (previous year: €714 million before special items)
  • Impairments of the METRO AG stake burden Group earnings; no meaningful basis for a dividend payment for the past financial year
  • Targets for 2018/19: Sales adjusted for currency and portfolio change effects expected to rise slightly and EBITDA and EBIT to decline slightly in financial year 2018/19 - esp. due to a higher comparative basis following one-off effects and the imminent transformation
  • Supervisory Board member Dr. Bernhard Düttmann takes over CFO duties from Mark Frese on an interim basis

Dusseldorf, 19 December 2018 - In a challenging environment, the past financial year fell short of expectations, as is well known. Following the decline in earnings in 2017/18, CECONOMY has defined measures on a faster and more consistent implementation of its strategy. The Company considers the financial year 2018/19 to be a year of transition, in which it will gradually reposition itself to increase customer focus and productivity of its business. Further investments in IT and logistics are to be made in the coming months. There will be additional expenses in connection with the announced management changes at CECONOMY and, in particular, MediaMarktSaturn as well as the reorganisation of business processes in administrative and central units at MediaMarktSaturn. Details are yet to be determined. The financial year 2017/18 does not constitute a meaningful basis for a dividend payment. Therefore, the Management Board and the Supervisory Board have decided to use the available equity capital to drive forward the Company's transformation as quickly as possible. "In the past financial year, our results fell short of our expectations and those of our shareholders. However, the positive development in the Online and Service business is proof that the cornerstones of our strategy remain intact. CECONOMY is and will continue to be an exciting and, above all, profitable company with a strategy geared towards sustainable success," says Dr Dieter Haag Molkenteller, member of the Management Board of CECONOMY AG.

The complete press release you will find here.