- Strong Q4 2019/20 with -0.5% like-for-like sales performance roughly on a par with the previous year; HoReCa sales recovered notably and contributed to significant trend improvement compared to Q3
- Sales target for FY 2019/20 met, with like-for-like sales performance of -3.9% at upper end of guidance (-3.5% to -5%)
- EBITDA adjusted for FY 2019/20, expected at upper end of guidance range
According to preliminary and unaudited figures, METRO’s like-for-like sales in Q4 2019/20 were nearly at the prior year’s level at -0.5%. Germany, Russia and Eastern Europe (together accounting for more than half of Group sales) already showed positive sales developments again. The like-for-like sales performance for FY 2019/20 amounted to -3.9% (9M 2019/20: -5.0%). “Despite COVID19, we successfully completed the large portfolio projects in the past financial year,” said Olaf Koch, CEO of METRO AG. “In this challenging year our holistic wholesale approach and diverse customer groups have proven to be very robust. So far, our progress through the COVID-19 phase has been very satisfactory compared to the development in the sector; our sales have recovered quickly and continuously and in the fourth quarter have almost returned to the previous year’s level. We have also been able to gain significant market share in our core business and are back on track for growth in Russia. With the exception of the third quarter, which was burdened by COVID-19, we can therefore look back on a stable and resilient fiscal year overall, in which the transformation to a pure wholesaler has been completed.”
Positive sales development in Germany, Russia and EasternEurope in Q4
In Q4 of FY 2019/20, METRO was able to stabilise like-for-like sales development at -0.5%, almost at the level of the prior-year quarter. Positive contributions came mainly from Germany with 2.7%, Russia with 8.2% and Eastern Europe (excluding Russia) with 2.0% sales growth. However, also Western Europe (excluding Germany) with -3.6% and Asia with -12.2% showed a significant improvement compared to Q3. This positive development is mainly due to the gradual relaxation of COVID-19 protection measures starting in May and continuing throughout Q4 and the numerous measures taken in this context to strengthen the operating business and independent business owners. Due to negative exchange rate effects, especially in Russia and Turkey, reported sales in Euro fell by -5.1%.
The like-for-like sales performance for FY 2019/20 amounts to -3.9% (9M 2019/20: -5.0%). Sales in local currency declined by -4.0%. Sales growth is thus at the upper end of the guidance range (-3.5% to -5%). This reflects the rapid and significant recovery of METRO’s HoReCa business, also supported by continued market share gains, including in Germany, France and Italy. The Trader and SCO customer groups also achieved clearly positive sales growth in Q4. Affected by unfavourable currency developments especially in Turkey and Russia as well as other countries in Eastern Europe and Asia, total sales of METRO AG dropped by -5.4% to €25.6 billion. The like-for-like sales development was positive in Russia (3.8%) and Eastern Europe (excluding Russia) (2.2%), Germany roughly matching the prior year’s level (-0.8%). Western Europe (excluding Germany) (-10.6%) and Asia (-7.0%) reported significantly negative like-for-like sales growth, mainly due to the effects of the COVID-19 pandemic.
As of 30 September 2019, the store network includes 678 stores (1 new store opening in Ukraine and 1 store closure in Russia).
This sales report contains preliminary, unaudited figures and forwardlooking statements. These statements are based on certain assumptions and expectations held at the time this report is published. Preliminary figures and forward-looking statements are therefore subject to risks and uncertainties and may significantly deviate from the actual results. With regard to forward-looking statements in particular, risks and uncertainties are to a large extent determined by factors that are outside of METRO’s sphere of influence and that can currently not be estimated with an adequate degree of certainty. These factors include, inter alia, future market conditions and economic developments, the actions of other market participants, the utilisation of anticipated synergy effects as well as legislative and political decisions. METRO does not consider itself obliged to publish any corrections to these forward-looking statements for the purpose of adjusting them to events or circumstances that eventuate after the publishing date of these materials.
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. For more information, please visit www.metroag.de
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