A few weeks ago, I reported to you that the leading photo service and online printing provider Cewe is doing well, especially in the final quarter. After all, the photo calendars and photo books offered by Cewe have been among the classic Christmas gifts for several years.

Mid-week, Cewe presented its preliminary business figures for the year 2023. According to this, the company was able to increase its sales in the fourth quarter of 2023 by 3.3% compared to the previous year to 327.0 million euros. The operating result (EBIT) also improved in the final quarter of 2023 by 4.6 million euros or 5.9% to 81.6 million euros.

It is also pleasing that Cewe was able to significantly increase both revenue and earnings not only in the end-of-year business, but also throughout the year 2023. But before I go into more detail about the preliminary figures of the Oldenburg photo book specialist, I would like to introduce the company briefly.

Cewe in a nutshell According to its own information, the Cewe Stiftung & Co. KGaA (short: Cewe), based in Oldenburg, is Europe’s leading photo service and online printing provider. The company operates in the areas of photo finishing, commercial online printing, and retail. In addition to the well-known Cewe photo books, the company also produces wall art, calendars, classic photo prints, and a variety of photo gifts.

In addition, business stationery such as letterhead, business cards, and promotional materials are also part of the company’s portfolio. In Poland, the Czech Republic, Slovakia, Norway, Sweden, and Germany, Cewe operates multi-channel concepts in the form of stationary stores and online shops.

There, the company offers a selection of cameras, lenses and accessories, services, as well as the entire Cewe photo finishing range. In addition, Cewe also sells its photo products through 20,000 retail partners such as DM, Rossmann, Ringfoto, Saturn, Kaufland, Edeka, and Amazon.

The company, founded in 1912, is still largely owned by the Neumüller family. The Cewe share is listed on the SDAX. Cewe is present in 21 countries with 4,000 employees.

Significant increase in revenue and earnings in 2023 In the financial year 2023, according to preliminary, untested figures, the Cewe Group was able to increase its revenue, including the company futalis sold in December 2023, by 6.5% to 788.8 million euros. The operating result (EBIT) of the Cewe Group increased by almost 8% to 81.6 million euros.

Without taking into account the deficit dog food provider futalis GmbH from Leipzig, which was acquired by Cewe in 2019 and sold again at the end of 2023, the preliminary figures are even better:

Without futalis, Cewe was able to improve its operating result in 2023 by 11.0% to 83.9 million euros. Sales (excluding futalis) increased to 780.2 million euros (2022: 732.7 million euros).

Forecast achieved It is also pleasing that the photo service provider’s preliminary business figures are at the upper end of the projected revenue and profit range. Cewe had expected sales in the target range of 720 to 780 million euros for 2023. For EBIT, Cewe had planned with up to 82 million euros.

Based on my calculations, the Cewe share is largely fairly valued at the current level. Therefore, the stock is not a bad investment, but there are significantly more promising stocks in the German medium-sized companies sector.

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