Ceconomy Stock: Shares Plunge Despite Return to Profit

Ceconomy, the parent company of MediaMarkt and Saturn, experienced a dramatic 12.5% stock price decline on Wednesday, with shares falling to €2.58, despite announcing positive financial results and a new dividend policy. The electronics retail giant reported a significant turnaround, posting a net profit of €77 million for the fiscal year, successfully recovering from a €37 million loss in the previous year. The company's adjusted group revenue increased by approximately 5% to €22.4 billion, while operating earnings (EBIT) reached €305 million, hitting the upper end of expectations. Additionally, Ceconomy announced plans to distribute between 10% and 25% of earnings per share to shareholders as part of its new dividend strategy.

Growth Outlook

Looking ahead to fiscal year 2024/25, Ceconomy has set ambitious growth targets, projecting a revenue increase of 3% to 5% and planning to boost adjusted operating earnings by at least 10%. This positive outlook is supported by the company's successful integration of traditional retail operations with online sales channels, along with strong performance in growth areas including Services & Solutions, Marketplace, and Retail Media, despite challenging market conditions.