Media Markt parent company pays no dividend
Ceconomy increases sales and operating profit in the past financial year. But after taxes, the company remains in the red. Investors are left empty-handed once again. Things are set to improve significantly in the new year.
Shareholders of the electronics retail holding Ceconomy will once again have to forego a dividend. The parent company of Media Markt and Saturn will not pay a dividend for the 2022/23 financial year either, the company announced. Sales and operating income increased.
Ceconomy is also confident of more in the new financial year 2023/24 (as of the end of September). Media Markt and Ceconomy are "well prepared" for the important Christmas business. For 2023/24, Ceconomy now expects a "slight increase in currency- and portfolio-adjusted total sales and a significant improvement in adjusted EBIT", the Group announced. "We have grown strongly in a challenging market environment and have significantly strengthened our market position," said CEO Karsten Wildberger.
He is focusing on a stronger integration of online and store business as well as an expansion of service offerings for the long struggling retail chains. He had also streamlined the electronics retailers' complex logistics chains. Media Markt and Saturn operate almost 1000 stores in Europe.
Turnover increases
Last year, Ceconomy was able to increase its turnover to 22.24 (previous year: 21.76) billion euros, it was reported. Thanks to the cost-cutting measures implemented, adjusted operating earnings (EBIT) rose to 243 (208) million euros. On the bottom line, however, the holding company posted a loss of 39 million euros. This was due to write-downs on the stake in the French electronics retail chain Fnac Darty.
The withdrawal from the Swedish and Portuguese markets and the reorganization also cost money. In the long term, however, these steps should bring benefits. Wildberger had announced its intention to double its operating income (adjusted EBIT) from 2021/22 to over 500 million euros by the 2025/26 financial year.
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Despite the increase in sales and operating profit, Ceconomy, the parent company of Media Markt and Saturn, will not pay a dividend for the 2022/23 financial year.Shareholders will once again have to forego a dividend, as Media-Saturn continues its trend of not distributing profits in this period.
Source: www.ntv.de
