Press Releases

METRO increases like-for-like sales and reaches adjusted guidance

12/13/2018

Old Setup

  • Adjusted group guidance for the financial year 2017/18 reached:
    • Like-for-like sales and sales in local currency increased by 0.7%
    • EBITDA (excluding earnings contributions from real estate transactions, adjusted for currency effects) increased by 1.2% (2016/17: €1,436 million)
  • Earnings per share (EPS) adjusted for Real goodwill impairment improved to €1.08 (>20% growth); after goodwill impairment €0.95 (2016/17: €0.89)
  • Management and Supervisory Board propose a dividend of €0.70 per share
  • Focus on wholesale shows good progress:
    • Real: Sale process on schedule; Hypermarket business as of 30 September 2018 reported as discontinued operations
    • Wholesale: Like-for-like sales increased by 1.3%; strongly driven by HoReCa and Trader

New Setup

  • Guidance 2018/19 for the continued operations:
    • Sales on a constant currency basis expected to increase by 1-3%
    • EBITDA (excluding earnings contributions from real estate transactions) 2-6% below prior year due to the expansion of digitalisation activities and the continuing transformation in Russia

METRO AG increased like-for-like sales in the financial year 2017/18 by 0.7%. Due to negative currency effects, reported sales decreased by 1.6% to €36.5 billion. EBITDA excluding earnings contributions from real estate transactions reached €1,396 million (2016/17: €1,436 million). Adjusted for currency effects, EBITDA excluding earnings contributions from real estate transactions rose by 1.2%. Hence METRO reached its adjusted guidance. The adjustment of the guidance in April 2018 resulted from reduced expectations for the Russian business and the termination of the temporary tariff agreement between Verdi and Real. "Overall, the financial year 2017/18 was a successful one for METRO. We have made significant progress in many areas but also had to overcome a number of unexpected challenges. We have come very far in our transformation to focus fully on the wholesale business, which showed positive like-for-like growth for the fifth year in a row", said Olaf Koch, Chairman of the Management Board of METRO AG. "Thanks to the measures initiated for our Russian business, we were able to prove in the second half of the year that we can tackle and solve challenges. Likewise, we have put in place the best conditions to allow Real to have a successful, independent future on its own. This sale process is making good progress. Next year we are going to be very active once again. Our priorities are the continuing focus on our key target groups HoReCa and Trader, as well as the expansion of our digital business."

A dividend of €0.70 per share will be proposed at the annual general meeting. In order to provide the shareholders an attractive dividend yield and dividend continuity, as well as to demonstrate our trust in the future of METRO, the dividend proposal corresponds to 74% of EPS and thus exceeds the distribution quota of 45-55% of EPS provided for in METRO's dividend policy.

The hypermarket business, which is for sale, is reported as discontinued operations as of 30 September 2018, due to the ongoing sales process. Within the scope of the required annual audit, the goodwill of €64 million attributed to Real was impaired in full. Adjusted for this non-cash relevant impairment the earnings per share improved by more than 20% to €1.08.

The discontinued operations primarily include Real and some other individual companies or assets. All following explanations of the business development will focus on the continued operations unless stated otherwise.

For further information please see the attached press release.