Düsseldorf, 2016-Oct-22 — /EPR Retail News/ — According to preliminary, unaudited figures, METRO GROUP increased its like-for-like sales by 0.2% in financial year 2015/16. This means that METRO GROUP has met its financial year sales forecast. Reported sales of €58.4 billion were down on the previous year’s figure by 1.4% due to negative currency and portfolio effects. However, METRO GROUP’s sales in local currency increased by 0.4%. “Financial year 2015/16 was an important one for METRO GROUP,” said Olaf Koch, Chairman of the Management Board of METRO AG. “We made significant progress in transforming the company and are now systematically focusing on customer value. This is also reflected in the positive development of our growth drivers online and delivery. We have achieved our sales target in a somewhat challenging market environment and, on this basis, confirm the guidance for EBIT before special items. The separation of METRO GROUP into a wholesale and food specialist and a consumer electronics group is the next logical step in the transformation process. Spin-off preparations are on track.”
METRO GROUP’s like-for-like sales were on a par with the previous year in Q4 2015/16. Both METRO Cash & Carry and Real increased their like-for-like sales, whereas sales at Media-Saturn declined as a result of decreasing sales at Redcoon and shifting effects. Reported sales at METRO GROUP decreased by 0.5% to €14.2 billion as a result of currency and portfolio effects. Sales in local currency increased by 0.2%.
METRO GROUP continued to significantly expand its online and delivery business, two strategically important and relevant growth areas, in Q4 2015/16. This also enhanced its market position. METRO GROUP believes it is well prepared for the upcoming Christmas business and expects to encounter a favourable market environment.
In Q4 METRO GROUP announced its acquisition of the French food service distribution company for professional customers Pro à Pro. Pro à Pro is one of the most important food service distribution (FSD) providers in France. In particular its customers include hotels, restaurants and caterers. Pro á Pro supplies a total of 42,000 customers in France and focuses on major contract caterers as well as canteens in the public and private sector, chained restaurants and independent restaurants. With this acquisition, METRO GROUP strengthens its French wholesale business in the growth segment FSD and creates an additional offering for the customers of METRO Cash & Carry France. The transaction is expected to be completed in the Christmas Quarter 2016.
Also in Q4 2015/16, METRO GROUP – as minority shareholder – acquired a stake in the start-up “Deutsche Technikberatung”, one of the participants of the first Spacelab Accelerator Program of Media-Saturn. Deutsche Technikberatung regards itself as a “technical support for home users” and offers quick support for technical issues through a network of professional advisors. Selected and specially trained technical advisors assist private customers and small businesses, like for example restaurants, in all aspects relating to the purchase, installation, networking and bug fixing of modern technical devices.
Sales line development in financial year 2015/16
METRO Cash & Carry
METRO Cash & Carry’s like-for-like sales increased in financial year 2015/16 by 0.6%, with this figure increasing in all quarters. Reported sales decreased by 2.3% to €29.0 billion due to the development of exchange rates (primarily that of the Russian rouble) and the sale of activities in Vietnam. By contrast, sales in local currency increased by 0.4%. Sales in the important delivery business rose – also due to acquisitions – by around 18% to €3.7 billion. As a result, the delivery sales share amounted to almost 13%.
METRO Cash & Carry’s like-for-like sales continued to develop positively in Q4 2015/16, climbing by 1.4%. The vast majority of countries in which METRO Cash & Carry operates increased their like-for-like sales. Reported sales came in on prior year’s level of €7.4 billion despite negative currency effects and store disposals. This was also partly due to the acquisitions of Rungis Express and Classic Fine Foods. Sales in local currency even increased by 1.3%. METRO Cash & Carry in Germany slightly increased its sales in both like-for-like and absolute terms in Q4 as well as over the financial year as a whole. Russia also experienced positive development, with the trend improvement leading to slight like-for-like growth in Q4 2015/16.
A total of 22 new stores were opened in financial year 2015/16, with a focus on Russia (5), India (5), China (4) and Turkey (3). A total of 17 of the 22 new store openings were attributable to these countries. Further stores were opened in Belgium, France and Italy (1 each), as well as in Croatia (2). METRO Cash & Carry closed or disposed of 34 stores. These mostly concerned the sale of the activities in Vietnam (19) as well as closures of so-called satellite stores in Poland in particular (11), which were branches for larger stores that have become less significant given the increasing demand for delivery. Further closures affected Kazakhstan, Croatia and Romania (1 each). One store in Germany was closed, but will be used as delivery hub now.
Sales at Media-Saturn rose by 0.1% in like-for-like terms in financial year 2015/16. Reported sales grew by 0.6% to €21.9 billion. Adjusted for currency effects, sales increased by 1.6%. Online generated sales by the Media Markt and Saturn sales brands developed extremely positively, rising by roughly 35% over the course of financial year 2015/16. This growth confirmed Media-Saturn’s establishment as a multichannel provider. By contrast, online business that is not integrated as part of operating business declined, due largely to the termination of selected unprofitable wholesale business at Redcoon. Overall, online generated sales rose by approximately 11% and now account for almost 9% of total sales at Media-Saturn, a new record figure.
In Q4 2015/16, like-for-like sales at Media-Saturn decreased by 2.0% from the high previous-year figure. Reported sales were down by 1.0% to €5.0 billion (-0.7% in local currency). Sales in Germany and Western Europe declined, but sales in Eastern Europe were up. Volume markets suffered from a number of negative factors, including delays in the supply of important products. There were also negative reversal effects from the strong sales of new televisions in the run-up to and during the European Football Championship in Q3 2015/16. Furthermore, the decline in business at Redcoon also contributed to a sales decrease in Q4.
In financial year 2015/16, Media-Saturn opened 33 stores and closed 17. Of the store openings, 8 were in Germany, 8 in Turkey, 5 in Poland, 4 in Italy, 2 each in Spain and Russia, and 1 each in Austria, Switzerland, Greece and Hungary. In terms of store closures, 8 were in Russia, 4 in Turkey, 3 in Italy and 1 consumer electronics store each in Germany and Poland. Shortly before stores’ rental agreements are set to expire, Media-Saturn reviews each and their respective terms and conditions and development to be better placed to make a decision on the store’s future.
Sales at Real decreased by 1.1% in like-for-like terms in financial year 2015/16. Reported sales declined, in particular as a result of store closings, by 3.3% to €7.5 billion. Like-for-like sales rose by 0.3% in Q4 2015/16, reflecting once again the positive development here. Reported sales declined by 1.6% to €1.8 billion due to store closures. Successful advertising campaigns resulted in a significant improvement at Real compared to previous quarters. In addition, Real agreed on the key points for a solution to collective bargaining agreements in early June 2016. In financial year 2015/16, the network of Real stores in Germany fell as planned by 8 to 285. A total of 6 Real stores were closed in Q4 2015/16, as planned and announced on a long-term basis.
METRO GROUP is one of the most important international retailing companies. It generated sales of some €58 billion in financial year 2015/16. The company operates over 2,000 locations in 29 countries and employs more than 220,000 people. The performance of METRO GROUP is based on the strength of its sales brands, which act independently on the market: METRO/MAKRO Cash & Carry, the international leader in the self-service wholesale trade; Media Markt and Saturn, the European market leader in consumer electronics retailing; and Real hypermarkets.
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Source: METRO GROUP