DUESSELDORF (dpa-AFX) - Ceconomy AG (MTAGF.PK, MTTRY.PK) expects sales, adjusted for currency and portfolio change effects, to increase by around 11.4 per cent for the first quarter of 2020/21. The positive sales development is mainly due to the strong start during the first two months, which were characterised by continued pleasing customer demand as well as successful promotions such as 'Black November'. It more than compensated for the renewed temporary closures of the stationary stores and increasing restrictions in November and December, the company said.
Based on preliminary results, the company also expects an adjusted Group EBIT of around 346 million euros for the first quarter of 2020/21 compared to 289 million euros in the prior year. Theyear-on-year increase in adjusted Group EBIT is mainly due to strong sales growth. Decreasing personnel and material costs increased cost efficiency as well as government support in the context of the COVID-19 pandemic also contributed to the development.
On the other hand, the result for the quarter was impacted by a negative gross margin development. This is mainly due to the COVID-19-related increased shift to the online channel, coupled with higher delivery costs, as well as lower Services & Solutions income due to the COVID-19-related store closures and declining customer footfall.
Outlook for 2020/21 subject to significantly increased uncertainties due to extension of local lockdowns Despite the strong start in the first quarter of 2020/21, the further course of business as well as the outlook for the full year 2020/21 is subject to significantly increased uncertainties in view of the difficult-to-estimate duration of the COVID-19 pandemic and the new and extended lockdowns in a large number of countries.
The company said it will publish detailed results for the first quarter of 2020/21 on 9 February 2021.
Copyright RTT News/dpa-AFX