DUESSELDORF (dpa-AFX) - CECONOMY AG (MTAGF.PK, MTTRY.PK) reported that its first-quarter adjusted operating earnings was 224 million euros compared to 274 million euros, prior year. The company noted that the comparison with the previous year is especially shaped by inflation-driven cost increases.
First quarter sales increased by 4.9 percent to 7.1 billion euros from 6.9 billion euros, previous year. Brick-and-mortar sales increased by 6.0 percent to 5.3 billion euros.
Looking forward, CECONOMY has created two scenarios for planning for the rest of the year: In scenario 1, assuming that the macroeconomic conditions will not deteriorate and the consumer electronics market will shrink moderately at the most, the company expects a slight increase in total sales and a clear increase in adjusted EBIT in 2022/23. In Scenario 2, under a less favourable macroeconomic environment than currently foreseen, which would also more severely decrease demand in the consumer electronics market, CECONOMY would have to factor in a clear decrease in total sales and adjusted EBIT.
Separately, MediaMarktSaturn, a unit of CECONOMY AG, has signed a binding agreement regarding the sale of its Swedish business to Power International AS. Power Sweden AB, a subsidiary of Power, will acquire a 100 percent stake in MediaMarkt Sweden. The deal includes the transfer of MediaMarkt Sweden's 29 Stores and all its around 1,300 employees. MediaMarktSaturn will receive a minority stake of 20 percent in Power Sweden.
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