Metro's like-for-like sales grow by +2.3%

(PresseBox) ( Duesseldorf, )

Like-for-like sales increased by 2.3% in Q1 2018/19
Strong development in Eastern Europe (+6.4%) and Asia (+5.9%)
Like-for-like sales in Russia declined by only -2.4%
Sales development in Q1 2018/19 in line with the outlook for the full financial year 2018/19


According to preliminary and unaudited figures, METRO AG’s like-for-like sales in Q1 2018/19 increased by 2.3% in comparison with the previous year. “In the first quarter of 2018/19, METRO has achieved the best like-for-like sales development for six quarters. Nearly all segments contributed positively to this. In Russia the rolled out measures showed positive results and like-for-like sales were only slightly negative. We confirm our outlook for the financial year 2018/19”, said Olaf Koch, Chairman of the Management Board. Total sales declined by -0.6% to €8.0 billion, due to negative currency effects in Russia and Eastern Europe. However, total sales in local currency grew by 2.1%.

Growth drivers in Eastern Europe and Asia 

METRO AG’s like-for-like sales growth of 2.3% in Q1 2018/19 was mainly driven by the strong development in Eastern Europe (without Russia) and Asia and supported by a slightly positive day effect. Both segments continued to grow at a high level of 6.4% (Eastern Europe without Russia) and 5.9% (Asia). In Russia like-for-like sales decreased by -2.4%, but with a continued monthly improvement. The development has been positively affected by an attractive pricing model as well as the expansion of the franchise format Fasol.

In Germany, METRO showed a slight decrease in like-for-like sales by -0.2% against a high comparison base of 2.3% in the previous year. In Western Europe sales increased by 1.0% due to a good development of HoReCa1 business.

Sales growth was driven by Food and HoReCa in the majority of the countries. The delivery business continued its successful development and the sales share increased further.

As of 31 December 2018, the store network included 771 stores, 11 stores more than on the same date in the previous year. In Q1 2018/19, two stores were opened, one in China and one in Turkey.

Discontinued operations[2]

The hypermarket business, which is up for sale, is reported as discontinued operations as of 30 September 2018. In Q1 2018/19 like-for-like sales slightly decreased by -0.5%. Reported sales decreased by -1.5% also due to 3 - 4 two temporary store closings.

The online business real.de continued to show a dynamic development. The Gross Merchandise Value (GMV) grew by 65% to €171 million.

As of 31 December 2018, the store network included 279 stores, two stores fewer than on the same date in the previous year. In Q1 2018/19 no stores were opened or closed.

Disclaimer
This sales report contains preliminary, unaudited figures and forwardlooking statements. These statements are based on certain assumptions and expectations held at the time this report is published. Preliminary figures and forward-looking statements are therefore subject to risks and uncertainties and may significantly deviate from the actual results. With regard to forward-looking statements in particular, risks and uncertainties are to a large extent determined by factors that are outside of METRO’s sphere of influence and that can currently not be estimated with an adequate degree of certainty. These factors include, inter alia, future market conditions and economic developments, the actions of other market participants, the utilisation of anticipated synergy effects as well as legislative and political decisions.

METRO does not consider itself obliged to publish any corrections to these forward-looking statements for the purpose of adjusting them to events or circumstances that eventuate after the publishing date of these materials.

[1] HoReCa = hotels, restaurants and catering companies.
[2] Includes mainly the former segment Real and a few entities and assets from the former segment Others.
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