METRO GROUP achieves sales target and confirms EBIT outlook

20 October 2014

  • Sales at METRO GROUP climbed by 1.3% in financial year 2013/14 after adjustment for portfolio changes and currency effects
  • Like-for-like sales increased by 0.1% after totalling -1.3% in the previous year; sales guidance achieved
  • Q4 2013/14: all sales lines generated higher like-for-like sales; considerable trend improvement at Media-Saturn
  • Earnings outlook confirmed
  • METRO GROUP's Christmas business gets off to a confident start

According to preliminary and unaudited figures, METRO GROUP increased its sales by 1.3% in financial year 2013/14 adjusted for portfolio and currency effects. The company's like-for-like sales also rose slightly by 0.1%, compared with -1.3% in the previous year. In generating this gain, the Düsseldorf-based retailing company achieved its sales target for the entire financial year. In Q4 2013/14, like-for-like sales even increased by 0.7%. "We succeeded in improving our like-for-like sales in recent quarters", said Olaf Koch, Chairman of the Management Board of METRO AG. "During Q4 in particular, we saw a strong trend improvement and increased like-for-like sales in every sales line. This is a clear reflection of our successful strategic transformation, a process we continued to energetically implement during this quarter. On the basis of our performance, we also confirm our outlook for EBIT before special items1. In addition, with these positive results we have further strengthened our financial power.

Reported sales of METRO GROUP totalled €63.0 billion in financial year 2013/14. Adjusted for the disposal of company operations - particularly Real's complete Eastern European business - sales declined by 1.1% compared with last year. Furthermore, exchange rates moved in a particularly negative direction during financial year 2013/14. Added together, portfolio and currency effects caused sales to fall by 4.0%. But adjusted for the portfolio changes and exchange rate developments, sales of METRO GROUP rose sharply by 1.8% in Q4. Reported sales in Q4 totalled €15.1 billion(Q4 2012/13: €15.5 billion).

During Q4 2013/14, METRO GROUP extensively expanded its business operations in the strategic growth areas of multichannel retailing, delivery, franchise activities and own brands. In the process, it solidified its market position and raised its level of relevance to customers in many countries. With Christmas approaching, METRO GROUP is well prepared and optimistically entered the current quarter. 

METRO GROUP also has made further progress in its work to optimise its portfolio: the company expects the agreement to sell its wholesale business in Vietnam to take effect during the first half of 2015. The company also generated a considerable profit when it sold its stake in the British wholesale company Booker. Both steps will serve to reduce the company's net debt and also create additional flexibility for further expansion in Eastern Europe and Asia as well as for investments in the transformation of its sales lines. In addition, METRO GROUP announced in October 2014 that METRO Cash & Carry would withdraw from Denmark.

METRO GROUP 2  2012/13 2013/14 Q4 2012/13 Q4 2013/14
Sales (€ billion) 65.7 63.0
15.5
15.1
Change (in €) -1.4%
-4.0%
-2.2%
-2.6%
Change (in local currency) 3

 -1.7%
 -0.2%
-0.9%
Like-for-like 3
0.1%
 -0.3%
0.7%

Sales development of the sales lines in financial year 2013/14

METRO Cash & Carry 

Like-for-like sales of METRO Cash & Carry rose in Q4 2013/14 for the fifth consecutive time. During September, in particular, the activities related to the 50th anniversary of the wholesale subsidiary had a positive effect. The previous year's high sales level was almost reached in Germany. While business development in Western Europe declined in Q4, like-for-like sales continued to rise in Eastern Europe and Asia. Sales development in Russia remained very positive. By contrast, sales in Ukraine fell sharply in the wake of the crisis. Within Asia, sales in India recorded a particularly strong increase. As a result of portfolio adjustments and negative currency effects, total sales at METRO Cash & Carry declined by 2.1% during financial year 2013/14. 

METRO Cash & Carry  2012/13 2013/14 Q4 2012/13 Q4 2013/14
Sales (€ billion) 31.2 35.0
7.8
7.6
Change (in €) -1.4%
-2.1%
-0.4%
-2.1%
Change (in local currency) 3

 2.0%
 2.7%
-0.9%
Like-for-like 3
1.0%
 0.9%
0.1%

Media-Saturn 

Media-Saturn generated sales of €21.0 billion during financial year 2013/14 (2012/13: €21.1 billion). In Q4 2013/14, Media-Saturn produced a strong trend improvement with like-for-like sales growth of 1.8%. Sales rose significantly both in Germany and internationally due to the successful development of the stationary retail business as well as the rise in Media-Saturn's multichannel sales. Like-for-like sales in its home market of Germany increased by 1.4%, due in part to successful marketing campaigns. In Western Europe, sales developed also positive. In Eastern Europe, the sales line generated double-digit growth rates in local currency in nearly all countries. The highest sales growth was generated in Hungary and Russia.

Media-Saturn  2012/13 2013/14 Q4 2012/13 Q4 2013/14
Sales (€ billion) 21.1 21.0
4.8
4.9
Change (in €) 0.8%
-0.3%
-0.1%
3.1%
Change (in local currency) 3

 0.9%
 1.0%
3.9%
 Like-for-like 3
-0.9%
 -1.9%
1.8%

Real

Real generated sales of €8.4 billion during financial year 2013/14 (2012/13: €10.4 billion). The decrease of 18.7% primarily resulted from the disposal of Real in Eastern Europe. In Q4 2013/14, sales totalled €1.9 billion (Q4 2012/13: €2.3 billion). Like-for-like sales produced by Real in Germany rose slightly by 0.2% in Q4. Overall, the improved positioning and store modernisation of METRO GROUP's hypermarket business was particularly noticeable in a sector known for its very aggressive pricing policies. In particular, the remodelled Real stores had a positive impact on sales trends. The attractive product range with a large share of fresh foods and the successful own brands sold in a modern shopping environment have created a much more pleasant customer shopping experience.

Real  2012/13 2013/14 Q4 2012/13 Q4 2013/14
Sales (€ billion) 10.4 8.4
2.3
1.9
Change (in €) -5.8%
-18.7%
-12.4%
-17.3%
Change (in local currency) 3

-18.3%
 -11.6%
-17.3%
Like-for-like 3
-0.8%
 -1.9%
0.2%

Galeria Kaufhof

Galeria Kaufhof increased its quarterly sales once again. In financial year 2013/14, Galeria Kaufhof generated total sales of €3.1 billion, a slight increase above the previous year's level. In Q4, sales (including like-for-like) rose by 1.2%. The sales line's product range that is continuously refined to meet customers' needs and increased online sales contributed to this growth.

Galeria Kaufhof  2012/13 2013/14 Q4 2012/13 Q4 2013/14
Sales (€ billion) 3.1
3.1
0.7
0.7
Change (in €) -1.3%
0.5%
1.1%
1.2%
Like-for-like 3
0.5%
1.1%
1.2%

Store network development

Galeria Kaufhof increased its quarterly sales once again. In financial year 2013/14, Galeria Kaufhof generated total sales of €3.1 billion, a slight increase above the previous year's level. In Q4, sales (including like-for-like) rose by 1.2%. The sales line's product range that is continuously refined to meet customers' needs and increased online sales contributed to this growth.

  30/09/2013  New openings
2013/14
Closures/
disposals
2013/14
30/09/2014 Change
(absolute)
METRO
Cash & Carry
 752 +17
-3
766
+14
Media-Saturn 948 +50
-12
986
+38
Real 384 +1
-74
311
-73
Galeria Kaufhof
 137

 137 +0
Total 2,221  +68 -89  2,200  -21

1 €1,750 million provided that exchange rates remain constant.
2 To enable better comparability following the change of the financial year, Q3 2013 is referred to in this report as Q4 2012/13. The period 12M 2012/13 consists of the former quarters Q4 2012, Q1 2013, Q2 2013 and Q3 2013.
3 Comparable figures for 2012/13 are not available due to the change of financial year.

METRO GROUP is one of the largest and most important international retailing companies. During the financial year 2012/13 (pro forma), it generated sales of about €66 billion. The company operates around 2,200 stores in 31 countries and has a headcount of around 250,000 employees. The performance of METRO GROUP is based on the strength of its sales brands that operate independently in their respective market segments: METRO/MAKRO Cash & Carry - the international leader in self-service wholesale - Media Markt and Saturn - the European market leader in consumer electronics retailing - Real hypermarkets and Galeria Kaufhof department stores.