- Like-for-like sales growth driven by strong development in Eastern Europe (excl. Russia) and Asia as well as HoReCa and Trader
- Reported sales grow by 2.2% to €7.5 billion, supported by positive currency effects
- Year-to-date2 like-for-like sales growth well within guidance range, supported by further trend improvement in Russia
- EBITDA excluding earnings contributions from real estate transactions at €526 million (Q1 2018/19: €530 million)
- Outlook for financial year 2019/20 confirmed
In Q1 2019/20 METRO AG’s like-for-like sales increased by 1.0%. Eastern Europe (excl. Russia) and Asia, as well as continuously robust HoReCa and Trader sales, were the main contributors to this positive development. In local currency METRO’s sales increased by 1.0% in comparison with the previous year. Reported sales increased by 2.2% to €7.5 billion, supported by positive currency effects. EBITDA excluding earnings contributions from real estate transactions reached €526 million (Q1 2018/19: €530 million). Adjusted for currency effects EBITDA excluding earnings contributions from real estate transactions decreased by -2.2%.
“In the first quarter of 2019/20 METRO reached a sales and EBITDA development within our expectations. We increased our reported sales by 2.2%. Eastern Europe and Asia remain sales drivers for METRO and our customer target groups HoReCa und Trader are also continuing to develop very positively. Based on a strong year-to-date like-for-like sales growth well within the guidance range, we confirm the outlook for the financial year 2019/20”, says Olaf Koch, Chairman of the Management Board of METRO AG.
Continued strong sales development with HoReCa and Trader
The focus on the core customer groups HoReCa (hotels, restaurants and catering companies) and Trader continued to pay off. Like-for-like sales with HoReCa customers was at 3.5% and with Trader at 5.6%3 . Also METRO’s delivery business continued to develop positively. In Q1 2019/20 sales grew by around 10% to €1.2 billion. The sales share of the delivery business now accounts for 16%.
In Germany, METRO showed a slight decrease in like-for-like sales of -0.3% in the first quarter of 2019/20, impacted by a change on tobacco regulations. Reported sales decreased by -0.4% to €1.3 billion. In Western Europe (excl. Germany) like-for-like sales increased by 0.5% in Q1 2019/20. Reported sales increased by 0.4% to €2.9 billion. In France, the sales development was affected by national general strikes. In Russia like-for-like sales decreased by -5.3%, however, a slight trend improvement versus Q4 2018/19 was achieved. Sales in local currency decreased by -4.9%. Reported sales increased by 2.5%, supported by positive currency effects.
Eastern Europe (excl. Russia) remains a growth driver for METRO. Like-for-like sales continued to grow at a high level of 5.0%. This growth was driven by the majority of countries, mainly Turkey, Ukraine, Romania and Poland. In local currency, sales increased by 5.1%. Supported by positive currency effects, reported sales increased by 6.1%.
In Asia like-for-like sales increased by 3.2% in comparison with the previous year. Sales growth was driven by India and Pakistan, whereas Classic Fine Foods was affected by the demonstrations in Hong Kong. In local currency sales grew by 3.4%. Supported by positive currency effects, reported sales increased by 5.2%.
As of 31 December 2019 the store network included 679 stores, 3 stores more than on the same date in the previous year. In Q1 2019/20 one store was opened in Ukraine.
METRO is a leading international wholesale company with food and non-food assortments that specialises on serving the needs of hotels, restaurants and caterers (HoReCa) as well as independent traders. Around the world, METRO has some 16 million customers who can choose whether to shop in one of the large-format stores, order online and collect their purchases at the store or have them delivered. METRO in addition also supports the competitiveness of entrepreneurs and own businesses with digital solutions and thereby contributes to cultural diversity in retail and hospitality. Sustainability is a key pillar of METRO’s business. METRO has been the European sector leader in the Dow Jones Sustainability Index. The company operates in 34 countries and employs more than 100,000 people worldwide. In financial year 2018/19, METRO generated sales of €27.1 billion. In September 2018 METRO initiated the divestment process for the food retail chain Real with its more than 34,000 employees. For more information, please visit www.metroag.de