CECONOMY AG / Key word(s): Forecast
CECONOMY AG updates outlook for the financial year 2021/22
Dusseldorf, 21 July 2022 - In view of significantly changed economic conditions, CECONOMY AG (CECONOMY) is adjusting its guidance for the financial year 2021/22. CECONOMY now expects
The guidance update is mainly driven by the latest developments and expectations in the DACH segment. In addition, this outlook is based on the assumption that the impacts of the Russian war of aggression against Ukraine will not worsen significantly and that potential energy supply shortages and the COVID-19 pandemic will not lead to new far-reaching restrictions in the retail sector that affect CECONOMY's business activities.
The previous outlook was based, among other things, on the assumption that consumer sentiment improves in the course of the year and that inflation rates normalize. In fact, consumer climate has further deteriorated at a rapid pace in recent weeks. Against this background the assumptions made are no longer valid. The dynamic inflation trend including sharply rising energy costs and weakened demand are particularly affecting Germany, Austria and Switzerland.
CECONOMY also assumes that the overall dampened conditions will persist beyond the current financial year 2021/22. The Management Board of CECONOMY will publish the guidance for the financial year 2022/23 as planned with the release of the annual results for the financial year 2021/22.
The outlook is adjusted for portfolio changes and does not take into account the earnings effects from companies accounted for using the equity method. As in the past financial year 2020/21, non-recurring effects in connection with COVID 19-related store closures as well as the introduction of a harmonized group-wide organizational structure ("Operating Model") announced on 12 August 2020 are not included. Expenses in connection with the transaction announced on 14 December 2020 regarding the acquisition of the minority shareholding in MediaMarktSaturn as well as the reorganization and simplification of the corporate structure are also not taken into account. The retroactive increase of a sector-specific tax in Hungary and accounting effects from the now hyperinflationary country of Turkey are also not taken into account.
In the third quarter of 2021/22, CECONOMY increased group sales adjusted for currency and portfolio effects by around 6% to around €4.6 billion (9M 2021/22: around €16.5 billion, previous year: €16.2 billion) on the basis of preliminary and unaudited figures. Due to increasingly dampened consumer sentiment, the sales momentum slowed down noticeably in the course of the quarter. Adjusted EBIT decreased in the third quarter of 2021/22 compared to previous year by around €16 million to around €-109 million (9M 2021/22: around €102 million, previous year: €106 million).
Financial reporting for the third quarter of 2021/22 will take place on 11 August 2022.
Explanations of the financial ratios referred to may be found in the annual report for the financial year 2020/21 published on the company's website (cf. p. 29ff.) via the following link:
Notifying person: Dr Hendrik Finger, Deputy Head Investor Relations, CECONOMY AG
21-Jul-2022 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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