METRO GROUP with sales growth in all divisions in 2010

11 January 2011

  • METRO GROUP sales grow by 2.6% to € 67.3 billion
  • Adjusted for store disposals and divestments, sales in Germany on prior year's level
  • Positive sales development in Q4 despite Christmas business being impaired by poor weather conditions
  • International sales increase by 5.4% in 2010
  • 100 new store openings (80 new store openings in 2009)
  • EBIT expectations of € 2.3 billion before special items reiterated

According to preliminary and unaudited figures, METRO GROUP's sales in the financial year 2010 grew by 2.6% to € 67.3 billion. "Looking back, 2010 was a successful year for METRO GROUP. We pushed our efficiency- and value-enhancing programme Shape 2012 consistently. Thereby, we have also laid the foundation for accelerating the international expansion," said Dr Eckhard Cordes, CEO of METRO GROUP. Following 80 new store openings in 2009, 2010 saw 100 stores in 25 countries opened in the financial year. Positive currency effects also contributed to the sales increase. Also in local currency sales still grew by 1.0%.

"Despite the difficult weather conditions during the important Christmas business, we reiterate our EBIT expectations of €2.3 billion before special items," said Cordes, "this would be a record profit for our company".

"2011 is all about continuing the dynamic growth path. Our profitable growth will accelerate on the back of an increased expansion and productivity gains from Shape 2012," said Cordes. "Sales trends improved once the recent milder weather kicked in."

In Q4 2010, METRO GROUP sales increased by 1.6% to €19.7 billion (in local currency: +0.1%). Due to the weather conditions, Q4 fell short of the level of the first nine months.

Sales in Germany in the financial year 2010 came in on prior year's level adjusted for store disposals and divestments. Before this adjustment, sales declined by 1.4% to €26.1 billion. In Q4, sales in Germany went down by 2.6% to €7.9 billion. Difficult weather conditions severely hit the sales development in the Christmas business.

International sales in the financial year 2010 grew by 5.4% (in local currency: +2.5%). In Q4, international sales increased by 4.6% (in local currency: +2.0%).

Sales in Western Europe (excluding Germany) grew by 2.8% to €21.5 billion (in local currency: +2.1%) in the financial year 2010. In Q4, sales increased by 0.7% (in local currency: -0.2%) and, thus, came in below the level of the first nine months.

In Eastern Europe, full year sales 2010 rose by 7.1% to € 16.9 billion. In local currency, sales growth amounted to 1.5%. In Q4, sales in Euro increased by 6.9%. Also in local currency, sales still increased significantly by 2.7%. METRO GROUP anticipates that the countries in Eastern Europe will again develop a high economic momentum in the medium term. Owing to its early international expansion METRO GROUP has a leading market position in each of the three strongest economies in Eastern Europe – Russia, Turkey and Poland – and will increasingly benefit from this development.

The Asia/Africa business showed a very gratifying development in the financial year 2010. Sales grew by 17.1% to € 2.7 billion (in local currency: +12.7%). In Q4, sales rose by 29.1% (in local currency: +19.3%). In the years to come, METRO GROUP will further accelerate its expansion in the high-growth regions in Asia. China in particular will be a focus for investments of the two sales divisions Metro Cash & Carry and Media-Saturn.

Sales 2009
(€ billion)
2010
(€ billion)
Change Change in
local curr.
METRO GROUP 65.5 67.3 2.6% 1.0%
Germany 26.5 26.1 -1.4% -1.4%
Western Europe (excl.
Germany)
20.9 21.5 2.8% 2.1%
Eastern Europe 15.8 16.9 7.1% 1.5%
Asia/Africa 2.3 2.7 17.1% 12.7%
Sales Q4 2009
(€ billion)
Q4 2010
(€ billion)
Change Change in
local curr.
METRO GROUP 19.4 19.7 1.6% 0.1%
Germany 8.1 7.9 -2.6% -2.6%
Western Europe (excl.
Germany)
6.3 6.3 0.7% -0.2%
Eastern Europe 4.6 4.9 6.9% 2.7%
Asia/Africa 0.5 0.7 29.1% 19.3%

Metro Cash & Carry

In 2010, sales at Metro Cash & Carry grew by 1.6% to €31.1 billion (in local currency: -0.6%). In like-for-like terms, sales declined by 1.7%. 

In Q4, despite difficult weather conditions across large parts of Europe, sales increased by 2.1% (in local currency: 0.0%) and also like-for-like, the sales development was better than in the first nine months. 

In Germany, full year 2010 sales declined mainly due to the systematic reduction in tobacco and telephone card sales. Adjusted for these low-margin categories, like-for-like sales were positive. In Q4, like-for-like sales adjusted for tobacco and telephone card sales came in at the 9M level. The destination categories fruit & vegetables, fresh fish & meat delivered again a very satisfactory performance. 

Due to the persistently difficult macroeconomic conditions in Western Europe, sales fell short of the prior year's level. Q4 was thereby below the level of the first nine months. 

In Asia/Africa, new record sales were generated in the financial year 2010. In Q4, sales growth came in clearly above the 9M level. Metro Cash & Carry has consistently pressed ahead with its strategic portfolio optimisation by divesting its Moroccan business activities, effective from 30 November 2010. 

Metro Cash & Carry 2009 2010 Q4 2009 Q4 2010
Sales (€ billion) 30.6 31.1 8.4 8.6
Change (€) -7.6% 1.6% -8.7% 2.1%
Change in local currency -2.5% -0.6% -3.6% 0.0%

Real

Sales at Real in 2010 grew by 1.8% to €11.5 billion (in local currency: +0.2%). Also in like-for-like terms, sales went up. Despite the difficult weather conditions, Q4 sales increased by 1.2% to €3.3 billion (in local currency: 0.0%). 

In Germany, the successful repositioning continued further. Sales in 2010 declined solely due to store closures. In like-for-like terms, sales were above prior year's level. The sales development in Q4 exceeded the level of the first nine months. Like-for-like sales grew significantly also on the back of unrelentingly good non-food sales. 

In Eastern Europe, Real's sales growth in 2010 was double-digit. However, the Q4 sales growth was below the 9M level. Whilst Russian and Turkish sales continued to grow dynamically, the difficult macroeconomic conditions in Romania led to a further sales decline. 

Real 2009 2010 Q4 2009 Q4 2010
Sales (€ billion) 11.3 11.5 3.2 3.3
Change (€) -2.9% 1.8% -1.8% 1.2%
Change in local currency 1.3% 0.2% 1.2% 0.0%

Media Markt and Saturn

Also in 2010, Media Markt and Saturn have confirmed their market leadership across Europe. Sales grew by 5.6% to €20.8 billion (in local currency: +4.3%). In Q4, the dynamic sales development slowed in comparison to the first nine months, also due to the weather conditions. 

In Germany, sales in 2010 reached prior year's level. Thereby, the prior year base was characterised by the hugely successful 30th anniversary campaign at Media Markt. Also due to the weather conditions, Q4 sales came in notably below the 9M level. In addition, the highly successful sale of vouchers, which only become sales-effective upon redemption, led to a sales shift into 2011. Moreover, first indicators show that the overall market, especially in the traditional consumer electronics segments, was characterised by a decline in sales also in the important Christmas business. 

To coincide with the start of the Christmas business, Media Markt and Saturn have introduced the first items in the new private label ranges Ok and Koenic. The customer response was exceedingly positive. 

Sales in Western Europe in full year 2010 were significantly above prior year's level despite the challenging economic market conditions. In Italy, the online business reached a notable sales growth of c.20%. In Q4, the sales development was unable to achieve the 9M level. Especially sales in France and Spain declined significantly. 

In Eastern Europe, by contrast, Media Markt and Saturn generated a double-digit sales growth rate in the financial year 2010. In Q4, the positive trend of the first nine months continued. 

The first Media Markt in Shanghai opened successfully In November. Media Markt and Saturn have consistently driven their strategic portfolio optimisation further by divesting the French stores in December. The disposal remains subject to approval from the relevant antitrust authorities. 

Media Markt and Saturn 2009 2010 Q4 2009 Q4 2010
Sales (€ billion) 19.7 20.8 6.5 6.6
Change (€) 3.7% 5.6% 3.7% 1.3%
Change in local currency 5.5% 4.3% 5.1% 0.1%

Galeria Kaufhof

In 2010, sales at Galeria Kaufhof grew by 1.3% to €3.6 billion despite three store closures. This increase is attributable to a good like-for-like sales development. 

In Q4, sales at Galeria Kaufhof came in above prior year's level. After a weather-related weak start to the Christmas business, trading finished satisfactorily. Especially winter clothes, seasonal leather and sporting goods as well as perfume were bestselling items. 

Galeria Kaufhof 2009 2010 Q4 2009 Q4 2010
Sales (€ billion) 3.5 3.6 1.2 1.2
Change (€) -1.9% 1.3% -0.3% 0.9%

Store network development

  31 Dec
2009
New store
openings 2010
Closures/
disposals 2010
31 Dec
2010
Change
(absolute)
Metro Cash & Carry 668 +38 -19 687 +19
Real 441 +2 -14 429 -12
Media M. / Saturn 818 +60 -1 877 +59
Galeria Kaufhof 141   -3 138 -3
Sonstige 59   -59 0 -59
Total 2,127 +100 -96 2,131 +4

Financial calendar

Annual Report 2010 Tuesday 22 March 2011 08:00 h
Annual Press Conference 2010 Tuesday 22 March 2011 10:00 h
Quarterly Financial Report Q1 2011 Tuesday 3 May 2011 07:15 h
Annual General Meeting Friday 6 May 2011 10:30 h
Half-Year Financial Report H1/Q2 2011 Monday 1 August 2011 07:15 h
Quarterly Financial Report 9M/Q3 2011 Thursday 3 November 2011 07:15 h
METRO GROUP is one of the largest and most international retailing companies. In 2010 the Group reached sales of around € 67 billion. The company has a headcount of some 290,000 employees and operates more than 2,100 stores in 33 countries. The Group's performance is based on the strength of its sales brands which operate independently in their respective market segment: Metro/Makro Cash & Carry – the international leader in self-service wholesale, Real hypermarkets, Media Markt and Saturn – European market leader in consumer electronics retailing, and Galeria Kaufhof department stores.