METRO GROUP kicks off 2015/16 with like-for-like sales increases at METRO Cash & Carry and Media-Saturn

12 January 2016

  • Group like-for-like sales in Q1 2015/16 on prior year level: +0.1%
  • Very good Christmas business in Germany with like-for-like sales increased by 2.1%
  • Currency adjusted sales growth at METRO Cash & Carry compensates for portfolio changes
  • Media-Saturn with positive sales development especially in Germany and Western Europe
  • Sale of METRO Cash & Carry Vietnam successfully completed; positive EBIT effect of more than €400 million

According to preliminary figures, METRO GROUP achieved like-for-like sales in Q1 2015/16 on prior year level (0.1%). METRO Cash & Carry and Media-Saturn showed sustained positive development in terms of like-for-like sales. In the corresponding quarter of the previous year, sales in Russia benefited from pull-forward effects in the course of the rouble crisis, which then were even compensated through the overall strong Christmas quarter in 2015. METRO GROUP sales in local currency fell just slightly by 0.1%. Reported sales fell by 1.5% to €17.1 billion (Q1 2014/15: €17.3 billion) due to the development of exchange rates - primarily that of the Russian rouble - and portfolio effects in particular. "The positive development in terms of like-for-like sales at METRO Cash & Carry and Media-Saturn continued into financial year 2015/16. We can also look back on a very good Christmas business, particularly in our domestic market, Germany, with like-for-like sales rising by 2.1% in December," said Olaf Koch, Chairman of the Management Board of METRO AG. "We remain confident for financial year 2015/16, despite the difficult environ-ment, and expect positive development thanks to the range of measures introduced in our sales lines. We retain our original forecast."

Strategic realignment has allowed METRO GROUP to make progress in introducing new services, expanding delivery and multichannel business and portfolio optimisation in Q1 2015/16.

METRO GROUP completed the sale of its cash & carry business in Vietnam successfully end of December 2015. The EBIT effect of more than €400 million will be included in Q1 2015/16 accounts. Therefore the reported result will increase significantly in Q1.

In Q1 2015/16, METRO GROUP opened a total of 11 new stores across 8 countries: 5 METRO Cash & Carry- and 6 Media-Saturn stores. Of the new stores, 5 are located in the important expansion countries Russia, Turkey and India. Due to the sale of METRO Cash & Carry Vietnam the total number of METRO Cash & Carry stores decreased by 19. In addition, 2 Media-Saturn stores in Russia and 1 in Italy were closed.

METRO GROUP Q1 2014/15 Q1 2015/16
Sales (€ billion) 17.3 17.1
Change (€) -2.3% -1.5%
Change (in local currency) 0.5% -0.1%
Like-for-like 2.3% 0.1%

Development of the sales divisions in Q1 2015/16


METRO Cash & Carry

Sales at METRO Cash & Carry rose by 0.2% in like-for-like terms in Q1 2015/16, marking the tenth consecutive quarter of positive development. Sales in local currency fell just slightly by 0.1%. Reported sales declined by 2.4% to €8.0 billion. However, it should be noted that sales in the corresponding quarter of the previous year still included sales from business in Denmark and Greece. In addition, sales of METRO Cash & Carry Vietnam were only consolidated until the end of November 2015.

Sales at METRO Cash & Carry Germany experienced positive development. Christmas business gave sales a major push in December. The successful customer-focused initiative, which encompassed many marketing- and communication measures, made a very positive impression.

Moreover, sales in main countries such as Spain, Italy, Czech Republic and Romania developed positively.

In the corresponding quarter of the previous year, sales at METRO Cash & Carry in Russia benefited from pull-forward effects in the course of the rouble crisis. Sales declined based on this high benchmark from the previous year. All in all, METRO Cash & Carry in Russia was able to cement its position in a more difficult economic environment.

METRO Cash & Carry's delivery business continued to perform extremely well, with the percentage share of sales rising further.

METRO Cash & Carry Q1 2014/15 Q1 2015/16
Sales (€ billion) 8.2 8.0
Change (€) -3.6% -2.4%
Change (in local currency) 1.1% -0.1%
Like-for-like 1.4% 0.2%

Media-Saturn

Like-for-like sales at Media-Saturn were up year on year in Q1 2015/16 by 0.4%. This marks the sixth consecutive quarter of rising sales. Sales in local currency grew by 1.1% while reported sales affected by the currency translation increased by 0.2% to €6.9 billion. Sales developed very positively in Germany.

In Western Europe, like-for-like sales performed well in several countries. In Eastern Europe, Russia had benefited from extensive pull-forward effects at the peak of the rouble crisis in December 2014, which is why sales in Russia declined considerably in the 2015 Christmas quarter. The good sales development in some other countries like Turkey, which recorded a double-digit like-for-like sales growth, and the robust performance in Germany could overcompensate the decrease in Russia.

Media-Saturn Q1 2014/15 Q1 2015/16
Sales (€ billion) 6.9 6.9
Change (€) 4.1% 0.2%
Change (in local currency) 5.6% 1.1%
Like-for-like 3.8% 0.4%

Real

Like-for-like sales at Real declined by 1.6% in the Christmas quarter. Store closures meant that reported sales declined by 3.8% to €2.1 billion year on year.

Sales development remained relatively stable in the intensely competitive food retail sector against the backdrop of price deflation, while sales in the non-food sector declined. Thereby particularly goods which are weather driven suffered from the unusual warm winter. Online sales developed extremely positively, but this was only able to partly compensate for the overall sales decline.

"The right frameworks must be created to improve Real's competitiveness. This includes competitive conditions for labour costs. Overall, the realignment of Real according to the Essen model remains on the right course and we are ready to implement further steps, if the frameworks are right", said Koch.

Real Q1 2014/15 Q1 2015/16
Sales (in € bn.) 2.2 2.1
Change(€) -0.8% -3.8%
Like-for-like 0.9% -1.6%

 

METRO GROUP is one of the most important international retailing companies. It generated sales of some €59 billion in financial year 2014/15. The company operates at more than 2,000 locations in 30 countries and employs some 230,000 people. The performance of METRO GROUP is based on the strength of its sales brands, which act independently on the market: METRO/MAKRO Cash & Carry, the international leader in the self-service wholesale trade; Media Markt and Saturn, the European market leader in consumer electronics retailing; and Real hypermarkets.