METRO AG Like-for-like sales in Q1 2019/20 increased by 1.0%. The main contributors to this positive trend were Eastern Europe (excluding Russia) and Asia, as well as continued strong sales in the HoReCa and Traders segments. Compared to last year, METRO sales in local currency increased by 1.0%. The sales growth of 2.2%, to EUR 7.5 billion, was supported by positive currency effects. Earnings-free EBITDA reached EUR 526 million (EUR 530 million in Q1 2018/19). Adjusted for currency effects, EBIDTA excluding earnings from real estate transactions decreased by 2.2%.
“In the first quarter of 2019/20, METRO achieved sales and EBIDTA developments within our expectations. We recorded sales growth of 2.2%. Eastern Europe and Asia remain sales drivers for METRO, and our target customers – HoReCa and Merchants – are also continuing to develop very positively. Based on strong growth in like-for-like sales since the beginning of the year, within the guidelines, we confirm the outlook for the 2019/20 financial year, ” said Olaf Koch, Chairman of the Board of Directors of METRO AG.
Continued strong sales growth in the HoReCa and Merchants segments
Focus on key customer groups – HoReCa (Hotels, Restaurants and Catering Companies) and Merchants – continued to be paid. Like-for-like sales at HoReCa customers stood at 3.5% and 5.6% at retailers. Positive development was also observed in the business segment of delivery. In Q1 2019/20, sales increased by about 10% to EUR 1.2 billion. The share of the shipping segment now stands at 16%.
U Germany, METRO saw a slight decrease in like-for-like sales of 0.3% in the first quarter of 2019/20, due to a change in tobacco regulations. Sales were down 0.4% to EUR 1.3 billion. U Western Europe (excluding Germany) like-for-like sales increased 0.5% in Q1 2019/20. Recorded sales increased 0.4% to EUR 2.9 billion. In France, the development of sales was influenced by general strikes. U Russia is like-for-like sales down 5.3%. However, there was a slight improvement in trend compared to Q4 2018/19. Sales in local currency decreased by 4.9%. Sales were up 2.5%, driven by positive currency effects.
Eastern Europe (excluding Russia) remains the driving force behind METRO's growth. Like-for-like sales continued to grow at a high of 5.0%. This growth is driven by most countries, with Turkey, Ukraine, Romania and Poland being particularly prominent. Domestic currency sales increased 5.1%. Backed by positive currency effects, recorded sales rose 6.1%.
U Asia is like-for-like sales increased by 3.2% compared to the previous year. The drivers of sales growth were India and Pakistan, while the demonstrations in Hong Kong were affecting Classic Fine Foods. Sales in local currency increased by 3.4%. Backed by positive currency effects, sales rose 5.2%.
As of December 31, 2019, the METRO network includes 679 stores, which is 3 more than on the same day of the previous year. In Q1 2019/20, one store opened in Ukraine.