CECONOMY AG Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Volker Bosse - Baader Bank - Analyst : Hello. It was Volker Bosse, Baader Bank. I have three. I would like to start with the gross margin, which declined by 40 basis points. Is it fair to say that this was basically driven by a negative product mix effect? Or how do you look at your gross margin development by product categories in detail, please? Second question would be on your outlook for the EBIT in '25 '26, which you outlined, in June '23, you said 2.5% adjusted EBIT margin and above EUR500 million EBIT. If I look at EUR360 million as a potential EBIT for the current full year, this would mean a strong increase by 38% next year and 100 basis points margin improvement. How do you look at this guidance which you outlined? We all know the situation is difficult, but is it really fair to assume that you will achieve your targets as you stated in your presentation? And the final one, there were speculations in the market about potential interest of GD.com. It's, of course, not easy to say -- to comment on these rumors. But nevertheless, I would like to take the chance asking if you had any contact, if you heard anything from these sites, please, your view on the rumors, please? Thank you.

Question: Volker Bosse - Baader Bank - Analyst : Thank you for the details. Thank you, very helpful.

Question: Andreas Riemann - ODDO - Analyst : Three questions from my side. First one, again, on the balance between growth and margins. So it seems that discounting and product mix in Q1 led to more traffic, higher volume growth and this also supported your growth businesses. So does it imply that you may invest more going forward in top line growth to further push those growth businesses like Marketplace, S&S and others? Or is Q1 an exception to the rule? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 11, 2025 / 8:00AM, CECG.DE - Q1 2025 CECONOMY AG Earnings Call So this is the first topic. Second one, the DACH region, the EBIT margin is now above 4%. Is it fair to say that the growth businesses account for 50% or more of the gross profit in DACH, so that the DACH EBIT margin is now the leading indicator for the group EBIT margin? That would be question number two. And the third one, I'm coming back to a podcast last summer, you remember with OMR. And I think you mentioned something like you better -- you want to make use of people coming to the stores. So maybe you want to show a [car] and other companies basically pay for that. Are there any measures you can share with us? Number three.

Question: Clement Genelot - Bryan Garnier & Co - Analyst : Three questions from my side, if I may. So the first one, is the gross margin declining across all geographies in Q1? My second question is rather on

Question: Markus Schmitt - ODDO BHF - Analyst : Just a couple for me. So the first one is more a technical question on the Other service and solutions revenue, given the change of illustration. So Retail Media and the commission and fees from the Marketplace are included now in online revenue and delivery fees from stores, brick-and-mortar. Is that understanding correct? And secondly, on slide 38, I mean these are obviously then the restated operational sales and service figures under the new definition. I guess maybe this is right. Maybe you can confirm this? Then third question, you mentioned just mid-double-digit cost savings for '25. Is this the result of the already implemented optimization initiative, which will have an effect still in the first three quarters this year? Or are these new measures? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 11, 2025 / 8:00AM, CECG.DE - Q1 2025 CECONOMY AG Earnings Call So implying an upsizing from EUR130 million to, let's say, EUR180 million, maybe clarification there? And finally, on the cash taxes, could you just remind me what amount of tax loss carry forwards are left as of now, respectively, where do you see cash taxes in '25 and '26?

Question: Alessandro Cuglietta - Kepler Cheuvreux. - Analyst : I just have two. One, maybe on the restructuring -- I mean, on the cost-cutting measures you announced for this year. Does that imply a restructuring cost, just to make sure I understand correctly that one? And the second question is on -- I mean, given the strong performance in Q1 and the fact that you confirm the guidance, are you may be considering resuming paying dividend as early as this year? Can you comment on that part?