The electronics retailer Ceconomy, with its Media Markt and Saturn chains, has so far held up better than expected in the slump in consumption - not least thanks to additional advertising. Overall, the retail giant increased its sales in the fourth quarter of the 2021/22 financial year, which ended at the end of September, by 1.3 percent compared to the same period last year to a good 5.2 billion euros, as the company announced on Wednesday in Düsseldorf. As a result, the group exceeded both its own forecasts and the expectations of the analysts. They had expected a drop in sales.
"Our robust development at the end of the past financial year shows that our measures are taking effect," says Ceconomy boss Karsten Wildberger. This is not least due to intensified and focused new marketing campaigns. However, the sales offensive left its mark on profits. The operating result (adjusted EBIT) in the 4th quarter was below the previous year's level, the group reported. The positive effect of increased sales is more than offset by lower product margins.
For the entire 2021/22 financial year, Ceconomy reported an increase in sales of 1.9 percent to 21.8 billion euros. The group had previously forecast stagnation. Media Markt and Saturn benefited from the recovery in stationary business after the end of the lockdown and the associated significant growth in business with service offers such as repairs and insurance. According to the information, the demand for large household appliances such as washing machines or refrigerators and for telecommunications products was particularly high. At EUR 5.3 billion, online business accounted for 24.6 percent of sales, almost twice as high as before the corona pandemic.
Adjusted EBIT for the full year is likely to be around EUR 200 million, at the upper end of the range of EUR 150 million to EUR 210 million that has been issued so far. However, the electronics retailer had already lowered its targets at the end of July due to weak consumer sentiment and high inflation.