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