GERMANY: Metro Group hails "solid" Q1 despite sales slide

By Hannah Abdulla | 13 January 2014

Metro Group has posted a 1.1% increase for Q1

Metro Group has posted a 1.1% increase for Q1

German retailer Metro Group has said it is on track to meet expectations in 2014, despite booking lower first-quarter sales dented by currency exchange and "soft" Christmas trading. 

The company saw net sales decline 3.3% in the three month period due to adverse currency effects in many parts of Eastern Europe and Asia as well as discontinued sales of Real Russia, Romania, Ukraine and Media Markt China.

Nevertheless, CEO Olaf Koch emphasised that adjusted sales were "in line" with expectations. "All in all, our new financial year got off to a solid start in spite of the still challenging economic conditions; soft Christmas sales prevented a better development. Our like-for-like sales development as well as our sales growth (adjusted for currency effects and portfolio changes) are nevertheless in line with our guidance."

Adjusted sales, which strip out the impact of currency and portfolio fluctuations, rose 1.1%.  Like-for-like sales were down 1.4% in the period, but adjusted like-for-like sales dipped just 0.2%, the company added. 

During the period the company opened a total of 36 new stores across nine countries. 

Show the press release

METRO GROUP had a solid start into Financial Year 2013/14

  • 1.1% sales growth (adjusted for currency effects and portfolio changes), like-for-like sales almost on prior year’s level
  • Further like-for-like sales trend improvements at METRO Cash & Carry against FY 2012/13 (pro-forma)
  • Both Egyptian MAKRO Cash & Carry stores were closed down
Preliminary METRO GROUP sales in Q1 2013/14, adjusted for currency effects and portfolio changes, grew by 1.1%. Reported sales declined by 3.3% to €18.7 billion mainly due to negative currency effects in many parts of Eastern Europe and Asia, as well as the missing sales of Real Russia, Romania, Ukraine and Media Markt China. "All in all, our new financial year got off to a solid start in spite of the still challenging economic backdrop; soft Christmas sales prevented a better development. Our like-for-like sales development as well as our sales growth (adjusted for currency effects and portfolio changes) are nevertheless in line with our guidance", said Olaf Koch, CEO of METRO AG. "Also in the first quarter 2013/14, the implemented transformation process has led to a METRO GROUP sales trend improvement. We shall continue our transformation in order to create further value for both our customers and shareholders", said Koch. 
METRO GROUP's transformation process continued into the FY 2013/14 with its online and delivery sales shares growing further. METRO GROUP has thus not only become more customer-relevant, but has also strengthened its market position in numerous cases. In Q1 2013/14, METRO GROUP opened a total of 36 new stores across 9 countries, of which 10 METRO Cash & Carry, 25 Media-Saturn and 1 Real hypermarket. 20 new store openings took place in the important expansion countries Russia, China, India and Turkey. Both Egyptian MAKRO Cash & Carrystores were closed down as METRO AG's Management Board sees currently no sustainable wholesale expansion opportunities here due to current affairs and the limited market position. 
METRO GROUP
Q1 2012/13
(Q4 2012)
Q1 2013/14
Sales (in € bn.)
19.4
18.7
Change (€)
0.5%
-3.3%
Change (in local currency)
-0.6%
-1.5%
Like-for-like change (in local currency)
-1.4%
-0.2%
Q1 2013/14 sales development of the METRO GROUP sales lines 
METRO Cash & Carry  
METRO Cash & Carry grew by satisfying 0.9% in like-for-like sales terms. The regions Eastern Europe and Asia reported like-for-like sales growth. In Eastern Europe especially Russia, Poland and Turkey showed a good development. In Germany and Western Europe, like-for-like sales declined: however, the sales trend improved against FY 2012/13 (pro-forma). In Germany, the numerous remodellings, product range improvements and new product launches already had positive effects. Spain and Italy even reported slight sales growth. Food sales atMETRO Cash & Carry were distinctly positive and delivery sales growth was double-digit. Negative currency effects were reported in Russia, Turkey, India and Japan in particular. 
METRO Cash & Carry
Q1 2012/13
(Q4 2012)
Q1 2013/14
Sales (in € bn.)
8.6
8.5
Change (€)
0.4%
-1.2%
Change (in local currency)
-1.1%
2.1%
Like-for-like change (in local currency)
-0.4%
0.9%
Media-Saturn 
The like-for-like sales trend at Media-Saturn improved against FY 2012/13 (pro-forma). In Germany, reported sales met the excellent prior year’s level; like-for-like sales were slightly down also due to the high prior year base. The sales development in Western Europe was slightly positive – the development in Spain and the Netherlands was pleasing; like-for-like sales were flat. Eastern European sales grew in local currency; both Hungary and Turkey reported considerable double-digit sales growth. In like-for-like terms, sales in Eastern Europe declined. Online sales at Media-Saturn significantly increased by more than 40% - here both very good multichannel sales and a satisfactory development at Redcoon contributed. 
Media-Saturn
Q1 2012/13
(Q4 2012)
Q1 2013/14
Sales (in € bn.)
6.6
6.6
Change (€)
1.3%
-0.7%
Change (in local currency)
0.6%
0.3%
Like-for-like change (in local currency)
-3.1%
-1.2%
Real 
German like-for-like sales declined by 2.0% on account of the relatively high prior year base and the very competitive market conditions, especially from discounters. Furthermore, reductions in food prices took place. 
Real
Q1 2012/13
(Q4 2012)
Q1 2013/14
Sales (in € bn.)
3.1
2.6
Change (€)
0.6%
-16.0%
Change (in local currency)
-0.3%
-15.6%
Like-for-like change (in local currency)
-0.3%
-1.9%
Real Deutschland
Q1 2012/13
(Q4 2012)
Q1 2013/14
Sales (in € bn.)
2.3
2.2
Change (€)
0.6%
-2.2%
Like-for-like change (in local currency)
1.5%
-2.0%
Galeria Kaufhof 
Galeria Kaufhof increased its like-for-like sales growth in Germany by 0.8%. The mild weather prevented a better textile sales development. 
Galeria Kaufhof
Q1 2012/13
(Q4 2012)
Q1 2013/14
Sales (in € bn.)
1.0
1.0
Change (€)
-2.9%
0.6%
Like-for-like change (in local currency)
-1.9%
0.6%

Original source: Metro Group

Sectors: Financials, Retail

Companies: Metro Group

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