Q2 2026 CECONOMY AG Earnings Call Transcript
Key Points
- Ceconomy AG (MTTRY) reported a strong half-year result, with sales growing by 4% to EUR13.1 billion, demonstrating the effectiveness of their strategy.
- The company's loyalty programs, myMediaMarkt and mySaturn, were ranked number one in the shopping category at the 2026 German Bonus awards, highlighting strong customer engagement.
- Online sales grew by 7.3% in H1 and 8% in Q2, with the online sales share reaching 28.5%, indicating successful omnichannel integration.
- Profitability improved with an adjusted EBIT growth of EUR43 million, a 14.2% increase in H1, showcasing effective cost management and strategic focus.
- The company's growth businesses, such as Services & Solutions and Retail Media, contributed significantly to profitability, with these segments now representing approximately 40% of gross profit.
- Consumer demand in Germany and Austria remained subdued, impacting sales performance in these regions.
- The company had to restate its accounting for voucher-related accruals, which affected reported sales and earnings, although it did not impact cash generation.
- Restructuring costs in Germany were high, raising concerns about the efficiency of operations in this key market.
- The acquisition process with JD.com is facing delays, with regulatory approvals still pending in several countries, potentially impacting strategic plans.
- Free cash flow remained negative at minus EUR165 million in H1, typical for the second quarter but still a point of concern for liquidity management.
Ladies and gentlemen, thank you for standing by. Welcome to the CECONOMY Q2 and half year 2025, 2026 results webcast and conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker today, Fabienne Caron, Vice President, Investor Relations and Communications. Please go ahead.
Thank you, Sharon, and good morning, everyone. It's a pleasure to welcome you to our Q2 results call today. I'm joined by our CEO, Kai-Ulrich Deissner; and our CFO, Remko Rijnders. Before we begin, I'd just like to briefly remind you that today's discussion will include forward-looking statements.
Please refer to the disclaimer in the presentation for further details. This call is being recorded, and the recording will be available on our website later today. With that, I'm pleased to hand over to Kai.
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