METRO continues strong growth momentum in first quarter

• Q1 2021/22 confirms growth trend, sales exceed pre-pandemic level¹:
  • Sales growth of 20.0% to €7.6 billion adjusted for currency effects, up 19.4%
  • EBITDA grew by €129 million and reached €528 million
• Sales in the store-based business grew to €6.2 billion (+13%), FSD sales to €1.4 billion (+64%) and METRO MARKETS sales to €15 million (+161%)
• HoReCa markets such as Germany, France, Italy and Spain continue to develop above HoReCa market level
• 4 additional stores in Russia and 1 location each in Germany and Ukraine have started out-of-store (OOS) deliveries
• Free cash flow increased to €283 million
• Profit or loss for the period² grew to €195 million; earnings per share increased to €0.54
• Sales and EBITDA outlook for FY 2021/22 confirmed

EBITDA reaches €528 million and thus also developed positively. Double digit sales growth with professional HoReCa customers in all regions is the main driver of this positive development. HoReCa core markets such as Germany, France, Italy and Spain continue to perform above HoReCa market level. As a result of these developments, the profit for the period increased to €195 million (PY: €99 million) and earnings per share rose to €0.54 (PY: €0.27). With intensified customer relationships, the expansion of the multichannel business and the offer of customised digital services for professional customers, METRO is consistently executing the growth strategy and remains on track for the outlook issued for the current financial year.

“We are forging ahead with the implementation of our ambitious ‘sCore’ growth strategy with full force. The strong first quarter growth shows that we are able to support our customers well in this phase with a high availability of products, relevant assortments and our flexible channel mix. Sales are above pre-pandemic levels, and earnings are also developing positively,” says Dr Steffen Greubel, CEO of METRO AG. “These 2 years of the pandemic have shown that the out of home consumption is unwavering and that the hospitality sector is creative, resilient and making a strong comeback. The industry will continue to face challenges for a while. With our stores, food service distribution, online marketplace and digital tools, we will maximise our ability to empower our customers to meet the challenges they face. This will allow us to continue to grow together with them.”

Sales growth in all regions³

In Germany, sales increased by 0.7%; however, at around €1.3 billion, it could not quite reach pre-pandemic levels. Rungis Express made gains com-pared to the previous year’s quarter, which was impacted by pandemic related restrictions. Furthermore, the HoReCa business outperformed the market compared to pre-pandemic levels and was able to slightly overcompensate for declines in sales to Traders and SCO customers. Adjusted EBITDA increased to €83 million and was thus above pre-pandemic levels. This is mainly the result of good margin development and rigorous cost management.

In the segment West, sales showed a significant increase of 36.1%. At €3 billion, it was thus above the pre-pandemic level. France, Italy and Spain in particular contributed to this development with double digit growth rates. Adjusted EBITDA increased significantly to €202 million, just below the pre-pandemic level. This increase is in particular attributable to the sales development compared to the previous year.

In Russia, reported sales increased by 17.9% to €0.8 billion, partly supported by positive currency effects, but could not quite reach pre-pandemic levels. Sales in local currency grew by 7.8%. Sales growth was primarily driven by the positive development in the strategic customer groups HoReCa and Traders, and in particular by the FSD business. Adjusted EBITDA increased to €81 million. The increase is mainly attributable to the positive sales development and stronger margin development. This development was also supported by positive currency effects, which contributed €6 million to the adjusted EBITDA.

Reported sales in the East segment grew by 14.8% to €2.4 billion and again ended up just above pre-pandemic levels. Sales in local currency were up 16.6%. Almost all countries contributed to this positive development, with Turkey achieving the highest sales growth, partly due to inflation. Negative currency effects were mainly recorded in Turkey. Adjusted EBITDA increased to €140 million. Turkey, the Czech Republic and Poland predominantly contributed to the positive development.

In the Others segment, adjusted EBITDA amounted to €15 million and was thus significantly lower than in the previous year. In Q1 2020/21, the profit or loss was supported by positive one time effects in the amount of €10 million, which will not recur in this form. Adjusted EBITDA, unchanged on the previous year, also benefited from licensing income from the partnership with Wumei, which will continue to accrue until April 2023. Moreover, METRO made additional investments in digitalisation in the current year.

FSD sales increased significantly by 64% to €1.4 billion and reached a share of sales of 18%.

As of 31 December 2021, the store network comprised 671 locations, of which 560 were OOS locations, and 66 depots. The country exits in Japan and Myanmar resulted in 10 fewer locations (9 of which were OOS) and 1 less depot. Furthermore, 4 additional stores in Russia and 1 location each in Germany and Ukraine have started OOS deliveries.

¹ Q1 2019/2020.
² Attributable to METRO shareholders.
³ As of financial year 2021/22, the Asia segment will be reported together with the Eastern Europe segment and will be renamed the East segment; similarly, the Western Europe segment is renamed West. Henceforth, METRO will report the following segments: Germany, West, Russia, East and the Others segment.