The electronics retail holding Ceconomy is forecasting a higher profit than expected for the current 2023/24 financial year.

Adjusted operating profit (EBIT) is expected to climb to between 290 and 310 million euros in 2023/24 (as of the end of September), the company announced on Monday. The Western and Southern Europe segment in particular will contribute to the increase. In the previous year, EBIT amounted to 243 million euros; experts had expected 273 million euros for the current financial year.

Previously, the holding company of the electronics retail chains Media Markt and Saturn had forecast a significant improvement in adjusted EBIT, which should result from the segments Germany, Austria and Switzerland as well as Western and Southern Europe. Currency and portfolio-adjusted total sales should continue to increase slightly across all segments. CEO Karsten Wildberger announced last year that the company intends to double its operating income (adjusted EBIT) from 2021/22 to over 500 million euros by the 2025/26 financial year.

According to preliminary figures, the Group achieved currency and portfolio-adjusted sales growth of 6.5% in the second quarter, while sales growth for the first half of the year amounted to 4.8%. Ceconomy recorded an increase in adjusted EBIT of 5.0 million euros in the past quarter after an operating loss of 21 million euros in the previous year.

The Group will present its full annual report on May 15.

(Report by Philipp Krach, edited by Ralf Banser. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)