Ceconomy AG Q1 2025/26 Earnings: Sales Up 3.4% to €7.6B, Adjusted EBIT +11% – 12th Consecutive Growth Quarter
Ceconomy AG (Ticker: CEC.DE / 0MPM) delivered a resilient Q1 fiscal 2025/26 performance amid ongoing retail headwinds, posting solid top-line expansion and continued profitability gains. The consumer electronics retailer, parent of MediaMarkt and Saturn, highlighted successful peak-season execution during Black Week, Singles’ Day, Cyber Week, and Christmas.
Key Financial Results – Q1 FY 2025/26
- Revenue: €7.6 billion, +3.4% YoY (currency- and portfolio-adjusted; like-for-like +3%).
- Adjusted EBIT: €311 million, +11% YoY (+€31 million), achieving the 12th straight quarter of EBIT expansion.
- Earnings Per Share (EPS): €0.37, +23% YoY.
- Free Cash Flow: €1.4 billion (strong seasonal performance).
- Net Cash Position: €2 billion.
- Online Share: Record 30% (up notably, with online sales +6.9%).
- Other Metrics: Loyalty members reached 57 million; refurbished sales surged ~380%; BetterWay (sustainable products) share at 16% under updated scope.
Growth was broad-based, fueled by strong international markets (Turkey, Spain, Italy, Hungary) offsetting softer demand in Germany and Austria. High-margin areas — services & solutions, retail media, marketplace, and refurbished — scaled rapidly and boosted margins. Gross margin rose 40 bps, while OPEX ratio improved 20 bps through disciplined cost management.
Strategic Highlights & Transformation Progress
Ceconomy advances its shift to an omnichannel service platform under the “Experience Electronics” strategy:
- Record Net Promoter Score (NPS) of 61, reflecting higher customer satisfaction and trust.
- Growth businesses (e.g., extended warranties, bundles, retail media, private label like Xperion gaming laptops) now form a €1 billion+ revenue stream over four years.
- Circular economy momentum: refurbished marketplace sales boomed (1 in 4 products in December), trade-in platforms expanding.
- Peak-season wins in gaming hardware (PS5, Nintendo Switch 2), floor care robots, computing, toys (e.g., LEGO), and emerging categories.
CEO Dr. Kai-Ulrich Deissner stressed reduced dependence on traditional retail cycles, with diversified high-margin streams building resilience. The pending strategic partnership with JD.com is expected to boost logistics, assortment, and omnichannel capabilities post-closing (anticipated H1 2026).
Outlook for FY 2025/26
Management reaffirmed guidance:
- Moderate sales growth (currency- and portfolio-adjusted).
- Adjusted EBIT around €500 million. Focus remains on top 200 products in DACH (driving ~40% sales), cost optimization (especially location and indirect spend), and accelerating growth businesses.
Risks to Monitor
- Persistent soft consumer spending in core DACH markets.
- Intense competition and promotional pressures in consumer electronics.
- Execution risks around JD.com integration and regulatory approvals.
- Macro uncertainties and potential supply-chain issues.
Ceconomy’s consistent execution, rising online penetration, and high-margin diversification position it well for sustained growth in a dynamic sector. The results reinforce confidence in reaching mid-term targets by September 2026.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.