Electronics retailer - Ceconomy grows: discounts in demand before Christmas
The electronics retailer Ceconomy expects further operational improvements in the new financial year. The operator of the Mediamarkt and Saturn consumer electronics stores announced in Düsseldorf on Monday that sales in 2023/24 (as at the end of September) are expected to increase slightly on a currency- and portfolio-adjusted basis and adjusted operating profit is expected to grow significantly. The promotions around Black Friday and the pre-Christmas period were "well received" both in the stores and online, it said. The first quarter with the Christmas business is traditionally the most important in Ceconomy's financial year.
In the past financial year, currency and portfolio-adjusted sales increased by 4.7 percent to 22.2 billion euros. The online share of total sales fell by 2.5 percentage points to 22 percent and is expected to rise to 30 percent by 2025/26. Brick-and-mortar retail proved robust in the past financial year and grew by 6.6% to 16.9 billion euros. Thanks to cost savings, the adjusted operating profit (EBIT) rose from 208 million to 243 million euros.
However, Ceconomy was in the red due to a value adjustment on its stake in French competitor Fnac Darty, with a reported EBIT loss of 21 million euros. The sale of the Swedish and Portuguese business and restructuring costs also had a negative impact. Ceconomy had already presented preliminary figures at the end of October.
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- Ceconomy's operations in North Rhine-Westphalia, home to major cities like Düsseldorf, contributed significantly to their increased turnover during the last financial year.
- With discounts on electronics being popular during Black Friday and the pre-Christmas period, Ceconomy saw a significant increase in sales both in their physical stores and online platforms.
- In the wake of the successful promotional periods, Ceconomy anticipates a further rise in their online sales share, aiming to reach 30% by the 2025/26 financial year.
- Despite the robust performance of its brick-and-mortar retail, Ceconomy faced a financial loss during the previous financial year, primarily due to value adjustments on its French competitor stake and other negative factors.
- Ceconomy's financial year, centered around the lucrative first quarter, which includes the Christmas business, is set to witness further growth in operations and profit margins, as projected in their future plans.
Source: www.stern.de
