Based on preliminary and unaudited figures, METRO AG increased like-for-like sales in the 2017/18 financial year by 0.7% compared to the previous year. The wholesale segment grew by 1.3%, the retail store Real saw a -1.7% drop due to the heat wave in the second half of the year. "METRO's sustained focus on wholesale is proving to be the right one. METRO Wholesale increased like-for-like sales for the fifth consecutive year and was still above the previous year's growth in financial year 2017/18. Delivery is becoming a growth driver, especially for our important HoReCa customers, who are even more committed to METRO through digital innovations. We confirm the forecast for the full year 2017/18," said Olaf Koch, CEO of METRO AG.
Total sales of METRO AG in the 2017/18 financial year amounted to € 36.5 billion. The -1.6% decline in reported revenue is due to adverse exchange rate movements.
METRO Wholesale continues to grow
Like-for-like, METRO's wholesale business increased by 1.3% in the past financial year. Negative exchange rate effects reduced reported revenue by -1.4% to € 29.5 billion.
In Germany, METRO achieved a significant improvement in like-for-like sales in the 2017/18 financial year as a result of growth with HoReCa customers (+ 0.8%). Eastern Europe, excluding Russia, (+ 6.1%) and Asia (+ 4.0%), continues to grow at a good pace. In Russia (-7.0%), the strategic transformation is progressing. The review of marketing activities leads to a lower customer frequency.
In the fourth quarter of 2017/18, METRO Wholesale posted like-for-like sales growth of 1.7% despite the negative effect of the day. This is driven by the good development in Eastern Europe (excluding Russia) and Asia. Revenues in the fourth quarter declined by -1.7% due to adverse currency developments.
As of 30 September 2018, the site network comprises 769 locations, 10 more than at the same date last year. In the financial year 2017/18, 14 locations were reopened.
Real with sales decline in the second half of the year
After significant sales growth in the first half of the year, Real recorded a decline in the second half of 2017/18 due to the continuing heat wave and a temporary impairment of the availability of goods. In the fourth quarter, like-for-like sales declined by -4.1%.
Overall, Real's revenue for the year declined by -1.7%. Reported sales also declined by -2.3% to € 7.1 billion due to 3 market closures in the current financial year. The marketplace business real.de is growing again by 90% to € 380 million (GMV).
As of September 30, 2018, the network comprises 279 locations, 3 fewer than at the previous year's reporting date (of which 2 were temporary closures due to renovations).
The hypermarket business for sale is reported as a discontinued operation1 as of September 30, 2018 due to the ongoing sale process. The outlook for the financial year 2017/18 continues to refer to METRO including the hypermarket business.
Source: Metro AG