Ceconomy AG

H1 sales were EUR 13.1 billion, up 4% adjusted for currency and portfolio changes. Q2 like-for-like sales grew 4.8%, and H1 like-for-like sales rose 3.7%. Adjusted EBIT increased EUR 43 million in H1, with EUR 10 million of that in Q2, and EBIT margin improved by 30 basis points. Gross margin rose 30 basis points to 18.1% in H1, and reported EPS was EUR 0.20 in the first half. Free cash flow was negative EUR 165 million in H1, improving EUR 7 million year over year and around EUR 100 million in Q2. For FY '25/'26, CECONOMY reaffirmed its outlook for a moderate increase in currency- and portfolio-adjusted total sales and adjusted EBIT of around EUR 500 million.

Kai-Ulrich Deissner framed the quarter as further proof that the company’s three-year transformation is working, emphasizing customer centricity, omnichannel execution, and the shift beyond traditional retail. He highlighted loyalty wins, marketplace scale, hub logistics, and the growing contribution from higher-margin growth businesses as evidence of stronger customer relationships and a more resilient business mix. His tone was confident but not complacent, repeatedly stressing that there is still work to do even as the company reaches the “finishing stretch” toward prior targets.

Remko Rijnders focused on the mechanics behind the results and noted an accounting restatement tied to voucher accrual timing, emphasizing it was not a change in trading performance and had no impact on cash, liquidity, or economics. He said fiscal year adjusted EBIT for FY '25 is now EUR 406 million versus the previously reported EUR 378 million, and that the company needs another EUR 51 million of EBIT improvement in H2 to reach its goal. He also pointed to the H1 gross margin increase to 18.1%, stable OpEx ratio at 16%, seasonally negative but improving free cash flow of EUR 165 million, and the S&P upgrade from BB- to BB with credit watch positive.

Analysts asked about restructuring costs in Germany and whether more store closures are planned; management said there had been significant restructuring to make the business scalable, but no additional store closures are planned at this time, while stores will still be reviewed continuously. Questions also focused on the JD.com transaction and timing; management said closing is expected in the second half of the calendar year, before the November 10 long-stop date, with delisting likely 3 to 6 months after closing. On Poland and the remaining KPI upside, management said Poland is improving thanks to a matrix structure, stronger HQ support, and a new local team, and that the EUR 500 million EBIT target is not viewed as the ceiling for the next phase.