Q2 2026 Fielmann AG Earnings Call
Speaker #1: Spain the spec to their usual 9, almost 10% growth rate. For the year, our EBITDA margin is very stable at prior year levels, almost 24%.
Speaker #1: Mm-hm.
Speaker #1: Good Good day, ladies and gentlemen, day. Ladies and and a warm welcome to gentlemen, welcome to today's Palace Trend today's analyst and investor call of Investor Call of the Fielmann the Fielmann Group AG.
Speaker #1: We continue, obviously, to do cost management. We invest in growth. We do that through increased hirings, because the more opticians we— the more opticians we have in our stores, the more customers we can serve.
Speaker #2: Thanks a
Speaker #1: And yes, we still have an issue with not serving all the customers that we could serve. The more doctors we have in the United States, the more exam capacity we open up, and the more exam capacity we have, the more glasses we sell.
Speaker #2: The rules: two questions the rules. Two questions per per head. welcome to head. Welcome to our our, half-year results call. half-year. We obviously we obviously published the published interim results and interim results and preliminary results preliminary results already on the 9th already on the 9th of July, of July, so the so the numbers are more or numbers are more or less well known.
Speaker #1: So, there is an investment going on into personnel expenses. But other than that, we're still very much on a cost-conscious path. You see the European margin at 25.1% for the first half-year, while the US dropped by 2.5%.
Speaker #2: less well-known. So let's So let's go through go through that at that, at, speed. speed. before we start Before we start with the—yeah, with the, you know, we're we're not—yeah.
Speaker #1: That's mainly due to personnel expenses and building up the capacity. Adjusted EBT margin is stable, and we expect improved growth dynamics for the second half of the year.
Speaker #1: I said July and August—we already see that trend. We're pretty significantly above Q2 numbers, but there's also some seasonality always going on over the summer months, when people are on vacation and all that.
Speaker #2: correction. Well, you know, let's address Well, you know, let's address that before we start that, before we start about those about those numbers. when Nils and numbers.
Speaker #2: it guys. It was was a a year—let me say—full year, let me say, full of of surprises. Who would have thought surprises. who would have thought that that we have an we have an R&D iron war war and, a and a scarcity and crude scarcity and crude oil and oil and exploding prices all exploding prices all over over again?
Speaker #2: And, I'm, I'm good with doing one for the year. And therefore we chose a slightly broader range. I think the important thing is to note.
Speaker #2: My name
Speaker #2: is
Speaker #1: Following the Group. Following the publication of the publication of the half-year half-year financial figures of the financial figures of the first half of first half of 2026, and 2026, and with this, I'm with this, I'm happy to hand over happy to hand over the Fielmann to Fielmann's CFO, CFO, Steffen Baetjer.
Speaker #1: Steffen Baetjer, please. The stage is yours.
Speaker #1: yours.
Speaker #2: Thanks a lot. Thanks a lot, lot. Thanks a lot, Ingmar. And welcome, Ingmar. And welcome, everybody. Well, everybody. Well, correct, that was correct, that was very, very fast.
Speaker #2: very, very fast. Thank you very Thank you very much. We come much. We come to that later, you know to that later, you know.
Speaker #2: Before we start with not—yeah—before we start with the overall the, with the overall summary, and you can go summary, and you can go to the summary notes, to the summary notes, thanks.
Speaker #2: thanks. Obviously, The, obviously you all you all noticed, last week that we noticed last week that we issued, issued an update to an update to our, our guidance, for the guidance for the year, and it was obviously a year, and it was obviously a downward downward correction.
Speaker #2: When Nils and I started I started, taking over taking over investor relations for investor relations for Fielmann, we talked Fielmann, we talked to a lot of you, to a lot of you, and, you know, we said and, you know, we said we stand for we stand for honesty and honesty and transparency transparency and and reliability.
Speaker #2: reliability. And we feel And we feel that, that we already guided we already guided you based on our you based on our June numbers.
Speaker #2: We already June numbers. We already guided you towards guided you towards the lower end of the lower end of our our expectations. And when expectation, and when we saw we saw July and July and August coming August coming in, we in, we felt necessary that we felt necessary that we update our update our guidance guidance because it because it became became apparent that it apparent that it might be the might be the lower end, but it might lower end, but it might be below the lower be below the lower end, and therefore end, and therefore we updated we updated our our guidance to you guidance to you guys.
Speaker #2: Who again? who would have thought would have thought that 8 months that, 8 months ago, ago we definitely we definitely didn't? didn't? And we need And, we need to, to, you know, reflect that in you know, reflect that in the consumer the consumer sentiment.
Speaker #2: And we see that being sentiment. And we see that being reflected, and reflected and therefore we adjusted therefore we adjusted our guidance. our guidance.
Speaker #2: We We specifically chose a specifically chose a slightly broader slightly broader range; we range, we chose a chose a range not range, you know, not just a just a 2% range, but a 2% range, but a 3% percentage point 3% percentage point range, 2% to range, 2 to 5 percentage 5% points or percent points or percent growth.
Speaker #2: growth. We we also softened the language also softened the language around the EBITDA around the EBITDA margin going margin going from around from around 23% 23% to to, 22 to 22% to 23%.
Speaker #2: The only reason 23. The only reason is is that, you that, you know, it's quite know, it's quite honestly, honestly, it's, it's—you know, it's not my it's not my favorite thing favorite thing to give you a to give you a guidance guidance update.
Speaker #2: update. And I'm good with doing one for the year. And therefore we chose a slightly broader range. I think the important thing is to note.
You know, pretty significantly above Q2 numbers. But, you know, there's also some seasonality always going on over the summer months when people are on vacation and all that. Um, but we're hopeful because, uh, fundamentally we are accelerating our, um, our rate at which we open new source, that's a tried and tested and uh, overanalyzed um, way of growing for us. Um, we do targeted hirings. As I said, do we still send away? Um, customers who we can't serve. So if we hire an optician in those stores, then that will immediately increase, uh, our Top Line and productivity gains. Um, mainly the AI by space, refraction, I talked to you about that many many times. So have you too should be better than have you 1 in terms of growth and uh uh profitability is still intact.
Uh, those, uh, numbers we talked about 2%, uh, 2.3% percent percent growth, um, 1.7 organic, you know, we did a small acquisition in Luxembourg. We disclosed that in our appendix, we added, 10 Stores, um, adjusted ebita margin on same year level and adjusted EBT and margin at same level as well. I mean, that sounds like, oh, um, these guys are only growing 4 million in, in adjusted EBT, ebita. But please bear in mind that last year was
A record profitability year for this company. So whilst uh, with, uh, an updated Guidance just a week ago, um, I should be careful and Neil's always said, be careful and tune it down, but I'd say it's still, it's still, it's it's less than we expected, but it's still pretty good. That we're beating a record year at least on the half year.
Next page. Um, yeah total Consolidated sales. We said that 1.8% uh, versus prior year. Uh, you still see the US dollar impact you remember Liberation day early, uh, April. Last year, the dollar Tanked
We're translating about $300 million in revenue into euros. So if the dollar tanks, that's not good for us. The dollar has been stable since roughly June last year, so that effect will taper out. 2.3% in constant currency is our growth. The Swiss franc works in the opposite direction—the Swiss franc appreciating against the euro—and those two levels each other out. But you know, there's a 0.5% uptick from the dollar weakness that we have here.
Um, well the the growth, which is, uh, which is great, is still across all our product, uh categories. So we're not a 1 track Pony. We actually accelerating our growth in Audiology. We um, we're good on sunglasses. Well, there was a lot of sun and therefore sunglasses are great. Um, adjacent Healthcare Services. Grow.
Of environment in Europe where you don't need a prescription to buy contact lenses. So our biggest uh, competitors are Amazon. For example, you can just order them online and that's uh, pricing game that we cannot win. Um, and therefore, we're focusing more and more on our um private label contact lenses. Atria. Which have
A slightly higher margin, or significantly higher margin. We see that actually as a positive margin development, but obviously, um, we're selling a lot less because they are also cheaper. And therefore, we have a minus 4%, but that's part of our contact lens strategy and is totally as planned.
Um,
Countries are growing as well. You see, Germany here at 1% for the half year 0% in the second half year. So a reversal the first quarter was weak because of whether this and Strikes. The second quarter was weak because of consumer sentiment you see and that's what you see you see the half year numbers and you see the queue 2 down there. So us you see half your growth at constant currency 3%.
Second quarter was 5%. So an acceleration of growth the same for Spain, 7 overall, 9, and the second, uh, in the second quarter. Uh, and then you have Switzerland and Austria and the others which are primarily driven by, um,
Uh, our acquisition Luxembourg. Um,
You know, the other countries are slightly down compared to Prior year because we're adjusting our Market approach to um, to Italy. Um, you know, that it's been an ongoing story. First was, you know, let's try and bring this back to profitability. Italy is now mid teens. Ebita profitability. So okay, not great, but okay. Um, and very good compared to where they come from, but um, we're still working on the product Market fit and we're cleaning out, um, our store Network and we have a new managing director for Italy. So the Spanish guy is also running Italy and uh and all that is going on. And that's why Italy is down half year about 3% compared to Prior year and that's the main driver here, why the others are slightly. If you rip out the um, acquisition, while the others are slightly,
Uh slightly lower overall we see other than Germany and improved growth Dynamics. So it's great. Um, because it proves that diversifying into several countries diversifying into the us into the US is the largest Optical Market is really something that pays off because
You know, we're not so dependent on Germany anymore.
Next slide. Um, yeah, profitability—we talked about that. Profitability is €4 million higher in absolute numbers, and margin is more or less where it was last year, which we think is a good achievement given that typically lower sales translate into...
You know, the lower expected sales turn into a margin impact, but you see here that we keep it all relatively stable because our cost control is still ongoing.
Next slide.
Um, yeah, it's a half-year, so we have to talk about the balance sheet as well. We have a quite significant cash position of €265 million. After the dividend, we still had about €150 million in the bank. And, uh, yes, we do have plans for what to do with it. Um,
The um, our leverage including leases is at 1.1 at in excluding. Lisa ability is at 0.1. So you might call this is somewhat uh underutilized balance sheet and we're working on that equity ratio went up 2 and a half percentage points almost 2 242.8. So balance sheet is not our issue, balance sheet is healthy. Um, you know, we spending a lot of time in the board uh thinking about how we can
Bring the money.
To use and expand further. And uh, we come later that we really accelerating our expansion in the markets, um, because we feel that's a great way of growing. The company is a very safe way of growing the company. Um, and uh, you know, the we we calculated basically the IRS for every store opening of the last 15 years and I can tell you, the IRS are also very good. Um, so it makes all the sense in the world, to take the money and spend it on new stores, new openings and additions smaller tuck in, uh, Acquisitions to actually, um, increase our market share as we did. For example, in Luxembourg, where we now number 1,
...by some temporary, um, uh, working capital, um, impacts. Um,
We build some inventory. That's a seasonal thing, but it sometimes happens.
You know, on this side of, uh, end of the end of the half year. Sometimes it happens on the other side of the, of the, um, half year. Um, we have a slight increase in, uh,
In our, you know, new stores, um, and, uh, in our, um—sorry—in our audiology sales. So, um, there we have more outstanding to, uh, to the people who actually get the money from the health insurance for us. So this is all—
You know, more or less a seasonal pattern that will normalize over the course of the Year investing activities. Um is impacted by accelerated store expansion and also by the acquisition that we undertook in Luxembourg at 23 million and financing activities. Um are you know slightly lower negative than last year. The biggest item is always leases. Um, so you know, the IRS 16 rent payments. So to say, or part of that. Um, we didn't we didn't take any new financial debt. You remember that last year at this point in time we refinanced, the short-term acquisition debt for the US acquisition into a long term uh, that and paid down
125 million. That was 1, big 1, uh, big impact. And then we, uh, took over the remaining 30% of our Slovenian entity and paid out the owner at 11 million. So that's hours. Now, as well at 100 at 100%, And that gives us a lot more control and we can integrate much closer with them on a lot more. Also, operational things like, you know, lenses, frames, etc, etc. So overall um, cash flow statement balance sheet. Uh, very happy with that very cash generative. Um,
and that's not, uh,
You know, that's not the first focus point, obviously. Um, how do we accelerate growth is the main focus point of this company at this current point in time?
Uh, next slide. Yeah. Um, Capital Market guidance? Well, we just issued it last week, so we don't have any changes and obviously confirm it. Um, 2 to 5%, €2.5 billion to €2.55 billion adjusted EBITDA, €560 to €580 million.
It's just a little bit of a margin, probably around 23, but, you know, given this is the year of surprises, as we call it, we are giving you a slightly broader range to make sure that we're not going to need to come back to you and communicate again. And our one is enough—as I said, one guideline should...
Around 12%. Our customer satisfaction is definitely around 90%. We don't see any dip in customer satisfaction, so we're really working on that. And as I said, July and August already have some favorable trends going forward. Now this is the normal... um, um,
Slide deck that we show you, um, because you're probably interested in what's going to happen in the second half. Um,
You know, we're going to accelerate our growth rate. Why is it that we do have accelerated expansion? Um, and I have a slide on that. Um, we’re also going to increase productivity. Okay, let's talk about— you said let's talk about accelerated expansion, okay? Niels, I'll do that. Why don't you go to the next slide then? So this is the number of net new stores that we are adding to our footprint. Um, as I said, we analyze new stores.
Of the last 15 years to deaths, we looked at the IRR. The IRR is, um...
Extremely double-digit, nice. Um, so it makes a lot of sense. Um, we had a lot of discussions in the board, um, where
Basically, I said, you know, let's talk about it because the IRR is great. We have the money, we have the management teams,
You know, we have a great market position and we have great EBITDA, so...
Have you seen that we added 11 of those acquired? Um, 26 opened, and we have in the pipeline another 33 stores for the second half here that we're going to open. That's excluding any acquisitions, so this is pure store openings across Europe and the US. So every country does something, this is—
uh, this is a, um,
This is a push for expansion. That's not just, you know, singular in terms of we only do it in Germany, or GSA, or the US. We do it across the company, every store. Um,
Obviously, at the immediate revenue. Um, we typically...
Um, do we have good brand recognition if we open the store?
They tend to be full. We have, you know, the turn then profitable depending on the, on the country and the and the repurchase intervals between, you know, 1 and 3 years before they turn profitable, uh, which also explains the slight margin dip from, um, uh, from the expansion. But, uh,
You know, once we build that—uh, once they turn profitable, as I said, the return on the capital invested is quite, um, significantly positive. And that's why we do this, because we're building a foundation that will carry us into the next decade.
Uh, so 33 more stores, and then we have about 70 open this year, which would be a significant acceleration compared to 2025. And, you know, we're currently in budget discussions for 2027 and, uh, well, sneak peek would be more. Uh, so, uh,
Uh, let's see. How many more are we going to do?
Besides accelerating the expansion, we are also increasing our productivity. I talked a lot about AI-based, um,
refraction, that's now in
You know, many, many hundred stores in operation, and it's day-to-day—it's a day-to-day thing. Basically, as I said, I did it. It cuts down refraction time by about 8, test time from about 15 or 12 minutes.
You know, by about four minutes, which opens and opens up a lot of productivity for our Opticians to then serve more customers. And then we're going to expand our exam availability, and that's mainly through hiring doctors, through hiring Opticians, so that we really have—
You know, the capacity is in Europe.
We're adding the capacity that's needed to serve customers, um, that are coming anyway in the U.S.
And that's why you see the margin dip. Um, we're adding capacity, so customers get used to, hey, this is a different experience. If I go to a Shopco, an SVS in the US, then to another option because we have the capacity. But to offer that, we first need to build it and then people need to realize it.
And then it will pay off, but that might take a while. But that's the dip that you see in our margin from the expansion of that capacity.
With that, um, I'm done with, um, H1 and Outlook H2. Um, and with that, I think we go to Q&A. I think we already have a few people now need...
My classes... um, I think we already have two people.
Um,
Who asked their question? Yes. So give participants please feel free to raise your hand if you have a question and I want to share it with us and Mr. Abbott Craig Abbott. He already raised his hands before the presentation really started, so we hand over to him. Mr. Abbott please.
Unmute yourself and ask your question.
Mr. Abbott, you're still muted. You have to unmute your microphone so we can hear you.
Correct. This is becoming a running joke. Oh no. Yeah, we can.
I finally found the mute button. Thank you.
And your second question. Yeah, I'm a second question. I guess would be to go over to the US, um, and I was wondering if you could give us an update on the say, the filmon brand is stores in the US, uh, you know, things like are you investing materially marketing spent established the brand locally is this where most of your focus is right now, with these doctor new hires, if you could just maybe just give us an update on how you feel about how those human branded stores are are developing
be mindful.
—of occasions, etc., etc. But Germany looks a little better than it used to look, uh, in—
Q2 and Q1. So we see an acceleration there. Um, but then again, it's—it's two months. Um, and it's been very difficult. I mean, you live in Frankfurt, so you know how difficult the
The sentiment is in Germany at the moment. Uh, but yes, we see an acceleration there and, uh, let's wait and see for the Q3 numbers in early November. Um, the US—well, we opened the first kind of Fielmann-branded stores around northern Illinois. And, uh,
And, uh, have been trying those. Um, we've been seeing that, um, the US markets, basically, or the US stores, the Fielmann stores in the US.
are still lacking a little bit. They’re not really, from the whole setup, they’re not really transporting what Fielmann stands for, so,
You know, you know it—you're in Germany, you go into a Fielmann store, you know, without...
You know, knowing the logo you know that you're in the filmon store we don't have that experience in the US that yet. So we actually um piloted 1 more store which we opened about a month ago and Machesney Park in Rockford Illinois. Uh where we have a where we have 1 film on store that's really done from the bottom up as of really the first fully-fledged few months store with training um with a vision guide you know, software based and tablet based Consulting so that we can take um the optical retail Associates that they are that we have in the US rather than the Opticians that we have in Germany, helping them to uh, to better consult our clients and, you know, first numbers are great. But first numbers are always great. When you open a new store and everybody from Hamburg is looking onto it. So we're monitoring this and we're still, you know, adapting how we're going about, but that's where the focus is at the moment. The focus is on
The brand promise, uh, the translation of the brand promise into store design and definitely the translation of the brand promise into how we interact with our customers. And that's for us the biggest thing, and that's a training uh that's a training uh tasks that we have ahead of us. But that's where um, the focus is other than last year where we were really about. Let's bring these 2 companies together and build 1. Um, we now really building, um, with, with starting to open, uh, a few stores also in the US, which we didn't do so much last year. Um, so um, there we are making embarking more on the normal course of business. Not yet on the accelerated growth path. Um, so if you see the full year numbers, you're not going to see that jump into, you know, the reaching the billion that we want to reach by 2030 is not going to be a straight line. It's more going to be um you know, we need to find out.
Our way, and then we're going to very aggressively grow. So that's where we stand on on on, on the US. So building the capacity and making sure that we have the right footprint and then I'm trying it out and very carefully except looking at it and analyzing it. And then, uh, and then driving the growth.
Engel, I think, had the next question. The US has a considerably more demanding litigation and compliance environment than Germany, given the history of internal control issues. How confident are you that the company's current compliance framework is sufficiently robust for expanding US operations?
That's a great question that I don't really relate to because, um, internal control issues... um, I'm not totally aware that we had any product or treatment related, um,
As you all know—uh, those who have followed us for quite some time—SVS and Shopco are both in the US, active in the US business for more than 50 years. Uh, we have a very good general counsel and legal team there, so you can rest assured of that. Um, we are not losing sleep over that.
Uh, Cedric.
Hi, Stefan and Niels. Here are my two questions:
Hey, the midpoint of the revised, adjusted EBA guidance implies approximately a 5% decline in the second half of the year, due to various pressures on profitability—namely retail expansion, unfavorable geo-mix, and lower operating leverage. Which of these do you expect to be the largest drag on margins?
RX glasses were up only 2% in the first half of the year. Correct. I presented this as likely reflecting softer trends in Germany. Correct. Have you seen any signs of deferred purchases that could lead to pent-up demand in a few quarters? Thanks.
Uh, take the first, the take the second question first because it's easier. Well. Um, people are, um, wearing their glasses longer um, than they used to the repurchase interval has increased. Um, basically in Germany for example, by half a year. Um, if you convert all that somebody took 17% out of the market. And uh, when you look at set for our numbers, um, so the German Association of um Opticians you're going to see that the German Market is shrinking, um, and absolute terms. Um and uh
We're actually holding steady, and that's not too bad in a shrinking market, but it's obviously not what we want to do. So I don't think it's, um,
I don't think it's, it's
deeper purchases, like
Damn, I need a new car. I don't want to do it this month. Why don't we do it next year?
Um, because that's not how purchasing glasses works. Um,
I think it's an overall feeling of, um, I better be careful with bigger-ticket items and bigger—other than...
Uh, tourism and bigger ticket items in, uh, is a pair of glasses, because yes, you can get very, very, very good, um, glasses from us at 19€, but if you are in a
You know, if you want medium quality,
Um, progressive lenses—uh, you're talking €300, €400, and that's a lot of money for a lot of people. And, uh, they say, well, why don't I wear them a little longer? Um, so we're not going to expect, like, this magic switch that something happens and then everybody floods our stores. Um,
Unfortunately, we need to wait for overall consumer sentiment to come back, and that will only happen, uh, most likely next year because, um, the GDP recovery that we see in Germany, as small as it is, is not, uh,
Consumer-driven, but it's defense and infrastructure-driven. So, that translating into consumer spend is going to take a little longer. And that's basically the big difference to Spain.
Where, um, you know, we see that. Yeah, first quarter was not so great because of whether and a lot of uncertainty, but there the GDP growth is a higher and B. It's, uh, it's driven also by consumer spend and that therefore, you have a more direct, um, uh, transition into our p&l. And therefore, we need to hold our horses, a little in Germany and open source and higher The Rite Opticians. And, uh,
you know, the what we do best, which is treat, our customers in a nice and great way, and give them the right product at the right price. And then, um, they will come to us as almost 60% of German customers do. Second, the midpoint the second question is, the first question. The midpoint of the revised guidance implies a 5% decline. Um, we do have some uh, phasing issues in spent in the biggest. Uh, the biggest portion here is marketing spent we probably going to spend, you know, and and that pattern
Much to your delight, I can assume. But that spend pattern in Germany, you know, in marketing shifts year by year—it's not seasonally stable. But sometimes we see a big campaign in, you know, the first half of the year.
Not so much in the second half of the year. Um,
You know, and then you remember two years ago, we didn't do anything in the first half year, and then we did a big brand equity campaign.
Your glasses, um, in the second half. Um, this year we are probably going to spend...
And Consulting spend and some marketing expenses that's basically leading to a smaller or lower margin on a, you know, evida level than in the first half year on the first 7 months. First 7 months C bit margin is basically the same as in the first 6 months. So, um, that's great, that's stable but that might happen and that's the reason why. Um, we updated um, the guidance I I also said
You know.
The '22 and the '23, I wouldn't really necessarily look at the midpoint because—
You know, the '22—take it more as a very, very cautious measure on our end, because we just don't know what surprises this year holds for us.
um,
c209 incident in Hamburg. Yeah, um
I wasn't here in 2019, so maybe somebody can remind me what the 2019 incident was.
Um,
But, uh, yeah, maybe we take that offline, Terry. Um, hi Stephanie and Niels. Are the 2030 targets maintained on revenues and margin? And if maintained, is there a higher portion of M&A than before and a lower estimated growth rate organically? When do you expect to start M&A in the US, as you told us that a series of targets were already identified and it is part of your ramp-up to the €4 billion sales. Well,
Um, in football terms, so to speak, we're in the 19th minute, um,
this is, uh,
Um, you know, it's still 000, um, but uh we're not giving up on winning this game so no, our 2030 targets are fully maintained its way too early to translate a temporary demand drip into or drop into a uh into a long-term, you know, doomsday scenario. And therefore you know the growth is not going to happen. Um
Uh, when do we start? We're planning to start with M&A, well, probably next year or the year after, but it's going to be a very small tuck-in. Um, if we do something bigger,
You know, if we could choose, it would be 2028 or 2029. Unfortunately, with M&A, you know, it's not only the buyer who can decide. Sometimes, the seller also says, well, now I want to sell.
And then we need to look at it and act on it, and that's what we're going to do. But so far, the 2030 Target Strategy is still intact and we don't see a reason to change that. If we do, then we'll let you know.
Thomas, good afternoon. Thanks for taking my questions. Fielmann, lease payments declined by 11%.
...around €49 million in the first half, while the store network...
Increased. Can you please provide some information on the drivers of the decline? The decline is from €58 million to €49 million, I think. That's the investing cash flow, right?
That's the financing cash flow needs—it's opposite me. Sorry, when I look like that, I mean Neil. Um...
uh, that we need to take apart for you and we can, uh, we can post that, uh,
We can post that later. Um, on this, we put an addendum page to the Q.
To the Q2 notifications, and post it with the presentation on the website. And could you please remind us how much total capacity is being spent on Comm, and what the distribution looks like? Over the years, Comm is about a $75 million investment. Um,
And then we're spending about €20 million on top for the operational backbone, OBB, which is the full—you know, we're basically ripping out the full, um,
Order.
and,
Supply chain.
SAP R/3 that we still have and putting in a very modern, standardized S/4. Um, that's going to run all the way to the year—uh, 2028, end of 2028. Um, the biggest part in Comm is, um, implementing a so-called shuttle, which is a fully automated...
Or an extremely automated warehousing and distribution.
Well, the thing, uh, that costs about $40 million. Uh, I've been in Commodore last—
Thursday, Friday, last Thursday, and it's actually there and it's standing there. So that part has been spent already. So €40 million of the €170 million has already been spent. The rest is now putting in some glazing. So,
The OBB as well, and we're going to go live with Calm for our e-commerce by mid next year.
And uh, and then we're dealing with the brick-and-mortar business for another year, and then we take that live again, and that's basically the spend. So, €50 million has been spent in total already on Com2, and the remaining—.
We're going to spend over the next two years.
Are you able to provide an update on market share dynamics and the competitive environment in the US?
Is this evolving in line with your expectation from a year ago or so?
Um,
our growth is, um,
still lower than the growth. Um,
Of the war, bees, and the scars of this world.
Um,
As I said, at the moment, we are...
We are really working on finding the right approach to the market, rather than growing aggressively in the US. That will take a little bit more time. As I said, the first fully-fledged store is now open, including the training.
We now have people from Europe on the ground in the US, so it's starting. But, before we...
Reach out and change things in 225 stores in the US. We want to make sure that we do the right thing. And until then, we're growing at 34% in the US.
But hope to accelerate that, obviously, from probably mid-2027 onwards.
There are 6 notifications but the question is uh oh this is these are the old questions. Okay. Yes there are uh there is 1 last participant with a raised hand
And you should be able to unmute yourself. Switch on your microphone and ask your question, please, Mr. Cool. Go ahead.
So, we still can't hear you. You should be able to unmute yourself.
Well, it doesn't work. I think that sums up our first half year.
um,
Michael, do you want to just type it and then I read it, and then—
We take it. We can wait.
Growth, same—still growth was this new opening versus Lux M&A. As we said on the page,
On one of the earlier pages in the deck, we see 1.7% organic growth and 6% from Luxembourg.
Um,
new openings.
I don't have that number of the top of my head but new open is even 303. I mean we have 1,299 stores adding 33 stores at you know within the first half year that are not all open on the 1st of January. But over the course of the month is uh that growth impact is relatively limited. Um and therefore I'd say,
Chop off 0.1%, and you're on the safe side.
Profitability impact this year from—I like that, you know, like bang, bang, bang, bangs the other night—it is profitability impact this year from new store openings, uh, this year.
Uh, again, um, so far, H1 numbers that we're talking about—um, very limited. Um, typically, as I said, the first year is negative, but we're not losing tons of money, um, on a new store. So, uh,
Again, relatively limited—2%, a 2 percentage point margin at max.
Great question. Michael, Mr. Coon typing, his next question.
Yes, that's the case. We waited a few seconds.
And other than that, all answered. Thank you. Well then, great.
okay, well,
That's it, your turn—the last question. And that was the last answer, by the way; we have no more questions on the line. So, this concludes this call for today. Thanks to all the participants for your shown interest in the Fielmann Group. And with this, from my side, I wish you a lovely remaining week, say goodbye, and hand over to Mr. Biya for some final remarks. Well, thanks a lot. Um, hey everybody, thanks very much for your continued interest in our company. Um,
So, we're doing whatever we can to grow this company, and...
But grow it carefully and not do, you know, strange or difficult things.
Um, and, uh, well, you know, summer's over. So I am going to see—
A lot of you probably, over the next two months, um,
You know, in Paris, in Munich, and, uh, we’re in Frankfurt for these conferences. So,
Uh, stay tuned. And again, thank you very much for your continued interest—much appreciated. And thank you very much for your questions in this call today. Have a great, uh, Thursday.
