Ceconomy lowers profit forecast: the parent company of Media Markt and Saturn in the crisis

The parent company of Media Markt and Saturn expects a further decline in income. The electronics trade holding Ceconomy expected after the drop in profits in the last fiscal year 2017/18 for the year 2018/19, a slight decline in operating income, as the company announced on Wednesday. Not a result of contributions from the participation in the French electronics retail chain Fnac Darty – but not the costs for the extensive change of leadership in the Management and reorganization of the business are taken into account. In 2019, a “year of upheaval”.

“In the past financial year remained our results are below our expectations ( .. )”, a confessed member of the management Board Dieter Haag whey plate. After all, Ceconomy have “a clear understanding of why we are our goals missed”, said the outgoing chief financial officer Mark Frese.

In the end of September, the past financial year 2017/18, the operating profit (Ebit) shrank without taking into account the income at Fnac Darty 95 million euros to 399 million euros. The bottom line is a profit of 23 million Euro remained. In the previous year, there were 206 million euros. The shareholders have to forego a dividend.

“The Best

Ceconomy was launched in the summer of 2017 in the independence, the then, Metro group has been split”. “The Best is yet to come – for our customers and shareholders,” promised then-chief Pieter Haas to the division. The Board was also ambitious medium-term targets: sales should increase by at least three percent, the Ebitda margin should rise from the back 3.3 percent to five percent. Frese had already indicated that this will probably take longer than expected.

The first financial year of independence, however, was not very successful. Discount battles in the Christmas business threw the Holding, the strong in Turkey, committed companies, the weakness of the national currency made to create. In the summer, the business around, write-downs on the share of the food retailer, Metro loaded. Ceconomy the shareholders covered with several profit warnings.

Currently, the Holding company is without a chief. Haas had to take in October, his hat, actually, he was, until 1. March 2022 ordered. Frese retires at the end of December from the office. The Supervisory Board Bernhard Düttmann will take over the Position temporarily.