After profit warnings and a sharp price slide, electronics retailer Ceconomy has to look for a new boss. The former CEO Pieter Haas has agreed with the Supervisory Board on an immediate separation. Even CFO Mark Frese leaves the company, but will continue to run the business until the appointment of a successor. This was announced by Ceconomy AG in Düsseldorf on the night of Saturday after an extraordinary meeting of the Supervisory Board.
Ceconomy was released in July 2017 The split-up of the Metro Group a good year ago emerged as an investment company for the electronics markets Saturn and Media Markt. On the other hand, the grocer met Metro with the same name supermarkets and the supermarket chain Real. Haas has since been CEO of Ceconomy and former board member of the former Metro Group.
Despite split strong profit decline
From the split, the companies had originally hoped for more growth and more stock market value. More growth because the separated companies could better focus on their respective customer group and act more dynamically. More market value, because conglomerates like the old Metro on the stock market are generally rated worse than clearly focused companies.
However, the path proved more difficult than expected for Ceconomy. Most recently, Ceconomy had to lower its earnings forecasts for the past 2017/18 fiscal year in September and October. Last Tuesday, it said earnings before interest and taxes (EBIT) had fallen from 494 to 400 million euros. The profit went back even stronger than expected. The company intends to publish full figures for the fiscal year on December 19. Ceconomy had previously cut its forecast for the year as a whole. The reasons given by the company were the unusual heat wave and the too slow implementation of the strategy.
Right time for personnel change
The most recent profit warning last Tuesday was listed on the stock exchange as a "disaster" and quit with a price slump of at times 20 percent. At around 4.65 euros, the Ceconomy share is currently worth just over one-third as much as at the beginning of 2018, when the paper traded at the peak of around 13.30 euros.
For the chief post will be "immediately launched a search process," the company announced. The Chairman of the Supervisory Board, Jürgen Fitschen, said that "in the light of recent developments", it is now the right time for a reorganization. Only then will it be possible to restore "lost confidence in the capital market".
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