METRO GROUP begins financial year 2014/15 with significant like-for-like sales growth

13 January 2015

  • Group sales up by 2.1% in like-for-like terms; 2.6% increase in sales adjusted for currency effects and portfolio changes
  • Christmas business overall positive
  • METRO Cash & Carry records like-for-like sales growth of 1.4%; noticeable growth in Eastern Europe and Asia
  • Media-Saturn grows like-for-like by 3.8%
  • Real with like-for-like sales growth of 0.9%

Preliminary METRO GROUP sales in Q1 2014/15, adjusted for currency effects and portfolio changes, grew by 2.6% compared to the previous year quarter. Reported sales declined by 2.2% to €18.3 billion mainly due to the disposal of Real Eastern Europe and the substantial negative currency effects in many parts of Eastern Europe, but particularly in Russia and Ukraine. However, like-for-like sales increased by 2.1%. "Despite the persistently challenging environment we were able to continue the positive like-for-like sales performance at the start of the new financial year," said Olaf Koch, Chairman of the Management Board of METRO AG. "Christmas business was overall positive. In December, all sales divisions increased their like-for-like sales. This positive development means that we have created a solid basis for further success in our transformation and achieving our full-year sales outlook."

METRO GROUP also successfully continued its transformation process at the start of financial year 2014/15 and expanded its share of sales in the multichannel and the delivery business, amongst others. In Q1 2014/15, METRO GROUP opened a total of 23 new stores across 7 countries, of which 9 were METRO Cash & Carry, 13 Media-Saturn and one Galeria Kaufhof department store. 14 new store openings took place in the important expansion countries Russia and China. The 5 METRO Cash & Carry stores in Denmark were closed at the end of 2014, as announced. In addition there was one METRO Cash & Carry store closure each in Rumania and Bulgaria. As announced, Real closed 5 stores and Galeria Kaufhof 2 department stores.

METRO GROUP Q1 2013/14 Q1 2014/15
Sales (€ billion) 18.7 18.3
Change (€) -3.3% -2.2%
Change (in local currency) -1.4% 0.4%
Like-for-like -0.2% 2.1%

Development of the sales divisions in Q1 2014/15


METRO Cash & Carry

All in all, METRO Cash & Carry enjoyed its sixth successive quarter of positive development, with like-for-like sales growth of 1.4%. In Eastern Europe and Asia in particular, there were distinct increases in like-for-like sales. Double-digit like-for-like sales growth was in particular achieved in Russia. Reported sales in Russia declined due to the extremely poor development of exchange rates. In Western Europe, like-for-like sales decreased slightly due to business development in Belgium and the Netherlands. In Germany, like-for-like sales also declined slightly.

The delivery sales growth at METRO Cash & Carry was once again gratifyingly above 10%.

METRO Cash & Carry Q1 2013/14 Q1 2014/15
Sales (€ billion) 8.5 8.2
Change (€) -1.1% -3.6%
Change (in local currency) 2.2% 1.1%
Like-for-like -0.9% 1.4%

Media-Saturn

Media-Saturn recorded extremely positive sales development, with the positive sales trend observed over previous quarters continuing with strong like-for-like sales growth of 3.8%. Due to the expansion, reported sales in local currency even rose by 5.6%. All regions contributed to the positive sales development, and like-for-like sales rose in almost all countries. In Western Europe, Spain experienced particularly positive development with double-digit like-for-like sales growth. Business in Eastern Europe grew significantly, with Hungary, Poland and, above all, Russia achieving double-digit like-for-like growth rates.

Media-Saturn continued the systematic expansion of online business, as well as the integration of all sales channels, in Q1 2014/15. As a result, online sales rose significantly by over 25%.

Media-Saturn Q1 2013/14 Q1 2014/15
Sales (€ billion) 6.6 6.9
Change (€) -0.7% 4.1%
Change (in local currency) 0.4% 5.6%
Like-for-like -1.0% 3.8%

Real

After the sale of Real Eastern Europe, Real is focusing on business in Germany. Like-for-like sales rose by 0.9%. With autumn dominated by intense competition, December saw again a significant positive development. A total of 50 stores have already been remodelled since October 2013 on the basis of the market concept successfully established in Essen. Real now offers an optimised product range, attractive prices and an enhanced shopping atmosphere in all remodelled stores. In financial year 2014/15, more stores are set to be remodelled in line with the new concept.

Real Q1 2013/14 Q1 2014/15
Sales (in € bn.) 2.6 2.2
thereof Germany (€ billion) 2.2 2.2
Change(€) -2.2% -0.7%
Like-for-like -2.1% 0.9%

Galeria Kaufhof

At Galeria Kaufhof, like-for-like sales fell year on year by 1.4%. A major reason for this was the mild weather conditions in autumn, which led to a poor start to the winter season for German textile sales. This decline was unable to be fully compensated in December even though Christmas business led to major increases in sales.

Galeria Kaufhof Q1 2013/14 Q1 2014/15
Sales (in € bn.) 1.0 1.0
Change(€) 0.6% -1.0%
Like-for-like 0.6% -1.4%

METRO GROUP is one of the largest and most important international retailing companies. In the financial year 2013/14 it generated sales of around €63 billion. The company operates around 2,200 stores in 30 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.