Sales and earnings developments

In financial year 2013/14, group sales totalled €63.0 billion, 4.0 per cent below the previous year’s level (2012/13: €65.7 billion). Sales declined by 1.7 per cent in local currency. The decrease primarily resulted from the disposal of Real in Eastern Europe. Adjusted for portfolio changes and currency effects, sales rose by 1.3 per cent. Like-for-like sales rose by 0.1 per cent.

In Germany, sales fell slightly by 0.6 per cent to €25.5 billion (2012/13: €25.6 billion).

In international business, sales adjusted for portfolio changes and currency effects rose by 2.5 per cent. However, as a result of negative currency effects and portfolio changes, sales fell by 6.2 per cent to €37.6 billion. The decrease primarily resulted from the disposal of Real in Eastern Europe.

The international share of total sales declined from 61.0 per cent to 59.6 per cent.

Sales in Western Europe (excluding Germany) declined slightly by 0.6 per cent to €19.1 billion (in local currency: –0.4 per cent). This was largely the result of developments in Belgium, the Netherlands and Denmark. By contrast, the development in Spain was very pleasing.

Sales in Eastern Europe adjusted for currency effects and portfolio changes increased by 4.6 per cent. In particular, Russia and Turkey contributed strongly to this rise. But as a result of currency effects and the disposal of Real Eastern Europe, sales fell considerably by 14.1 per cent to €14.8 billion. Sales declined by 6.5 per cent in local currency.

The Asia/Africa region continued to generate strong growth. Adjusted for portfolio changes and currency effects, sales climbed by 7.8 per cent. As a result of the closure of business operations in Egypt and currency effects, sales rose only by 1.0 per cent to €3.7 billion. However, they rose by 6.2 per cent in local currency. As a result, Asia/Africa is the fastest-growing region at METRO GROUP.

During financial year 2013/14, EBIT at METRO GROUP totalled €1,273 million, a total of €415 million below the previous year’s level (2012/13: €1,688 million). This figure contains special items amounting to €454 million (2012/13: €313 million). These special items can be broken down into portfolio changes totalling €19 million (in particular from METRO Cash & Carry’s withdrawal from the Danish market as well as the divestment of Real Turkey and Real Eastern Europe), restructuring and efficiency improvement measures totalling €264 million (primarily the planned closures at Real and restructurings at METRO Cash & Carry in Belgium and the Netherlands as well as at Real and Media-Saturn), impairment losses on goodwill totalling €88 million (affects METRO Cash & Carry in the Netherlands) as well as other special items totalling €83 million.

Special items are non-recurring transactions such as restructuring or changes to the group portfolio. Reporting before special items better reflects the company’s operating performance and thus renders the earnings presentation more meaningful.

An overview including the reconciliation of special items can be found in the combined management report.

In financial year 2013/14, EBIT before special items at METRO GROUP fell from €2,000 million to €1,727 million. In this regard, it should, however, be noted that the comparable result from the previous year totalled about €1.7 billion. The lower comparable figure for the previous year was adjusted for unusually high income from real estate disposals and earnings contributions from portfolio changes. In addition, earnings were hurt during the reporting period by negative currency effects totalling €82 million.

Development of group sales
by sales line and region

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Change in % compared with the previous year’s period

 

 

 

 

 

 

 

 

9M 2013
€ million

12M 2012/13
€ million

12M 2013/14
€ million

in €

Currency effects in percentage points

in local currency

METRO Cash & Carry

22,559

31,165

30,513

−2.1

−4.1

2.0

Media-Saturn

14,405

21,053

20,981

−0.3

−1.2

0.8

Real

7,261

10,366

8,432

−18.7

−0.3

−18.3

Galeria Kaufhof

2,086

3,082

3,099

0.5

0.0

0.5

Others

10

14

10

−24.3

0.0

−24.3

METRO GROUP

46,321

65,679

63,035

−4.0

−2.3

−1.7

thereof Germany

17,840

25,623

25,478

−0.6

0.0

−0.6

thereof international

28,481

40,056

37,557

−6.2

−3.9

−2.3

Western Europe (excl. Germany)

13,664

19,192

19,081

−0.6

−0.1

−0.4

Eastern Europe

12,011

17,180

14,755

−14.1

−7.6

−6.5

Asia/Africa

2,805

3,685

3,722

1.0

−5.2

6.2

Group sales of METRO GROUP 2013/14
by region

Group sales of METRO GROUP 2013/14 (pie chart)

Development of group EBIT and EBIT of the sales lines

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EBIT1, 2

 

 

 

 

€ million

9M 2013

12M 2012/13

12M 2013/14

1

Revised presentation (for more information, see the notes to the group accounting principles and methods); the comparative periods have been adjusted accordingly

2

Before special items

METRO Cash & Carry

725

1,379

1,125

Media-Saturn

−33

299

335

Real

29

145

81

Galeria Kaufhof

40

229

193

Others

−32

−54

−6

Consolidation

−2

2

0

METRO GROUP

728

2,000

1,727

Sales and earnings development of the sales lines

METRO Cash & Carry

Like-for-like sales at METRO Cash & Carry rose by 1.0 per cent during financial year 2013/14. As a result of very negative currency effects, sales fell by 2.1 per cent to €30.5 billion. However, sales rose by 2.0 per cent in local currency.

Sales generated by the delivery business continued to show a dynamic development, climbing by 9.5 per cent to €2.8 billion (2012/13: €2.5 billion). In local currency, sales even rose by 13.6 per cent. The sales share of own brands continued to rise. In financial year 2013/14, this share rose from 16.8 per cent in the previous year to 17.0 per cent.

In Germany, sales decreased slightly by 0.4 per cent to €4.8 billion during financial year 2013/14 (like-for-like –0.3 per cent). A slight trend reversal occurred during the financial year thanks to the success of a modified product range.

In Western Europe (excluding Germany), sales in financial year 2013/14 declined slightly by 1.1 per cent to €10.5 billion (2012/13: €10.7 billion). Like-for-like sales declined by 1.5 per cent. While sales in the Netherlands, Denmark and Belgium declined markedly, sales trends in France and Spain were positive.

In Eastern Europe, sales fell by 5.0 per cent to €11.4 billion due to distinctly negative currency effects. However, sales rose markedly in local currency, gaining 4.2 per cent. Like-for-like sales also rose markedly by 2.9 per cent. In Russia, like-for-like sales continued to climb sharply in spite of the difficult political situation and rose by nearly a double-digit percentage. By contrast, Ukraine saw a decline in sales. The recovery continued in Poland, where like-for-like sales increased markedly. The sales trend in Turkey was also very positive.

Sales in Asia/Africa totalled €3.7 billion, an increase of 2.5 per cent. Exchange rates had a negative impact here as well. Sales rose by 7.9 per cent in local currency. Like-for-like sales also climbed sharply in virtually all countries and rose by 4.4 per cent in the region. India performed well, recording double-digit growth in like-for-like sales. China also showed a positive development.

Key figures METRO Cash & Carry 2013/14
in year-on-year comparison

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Change in % compared with the previous year’s period

 

 

 

 

 

 

 

 

 

9M 2013
€ million

12M 2012/13
€ million

12M 2013/14
€ million

in €

Currency effects in percentage points

in local currency

like-for-like sales in local currency

1

Revised presentation (for more information, see the notes to the group accounting principles and methods); the comparative periods have been adjusted accordingly

2

Before special items

Sales

22,559

31,165

30,513

−2.1

−4.1

2.0

1.0

Germany

3,444

4,837

4,819

−0.4

0.0

−0.4

−0.3

Western Europe (excl. Germany)

7,750

10,668

10,547

−1.1

0.0

−1.1

−1.5

Eastern Europe

8,587

12,037

11,431

−5.0

−9.2

4.2

2.9

Asia/Africa

2,778

3,623

3,716

2.5

−5.3

7.9

4.4

EBIT1, 2

725

1,379

1,125

−18.4

EBIT margin 1, 2 (%)

3.2

4.4

3.7

Locations (number)

752

752

766

1.9

Selling space (1,000 m2)

5,554

5,554

5,576

0.4

Sales of METRO Cash & Carry 2013/14
by region

Sales of METRO Cash & Carry 2013/14 (pie chart)

In financial year 2013/14, the share of international business in the total sales of METRO Cash & Carry fell slightly from 84.5 per cent to 84.2 per cent as a result of currency effects.

EBIT at METRO Cash & Carry totalled €904 million in financial year 2013/14 (2012/13: €1,205 million). This figure includes special items of €221 million. The largest individual item was non-cash impairment of goodwill at METRO Cash & Carry in the Netherlands (€88 million). The figure also includes portfolio measures as well as restructuring and closing costs that involve a large number of individual measures. These are primarily related to the withdrawal from the Danish market as well as restructurings in Belgium and the Netherlands. EBIT before special items amounted to €1,125 million (2012/13: €1,379 million). This decline was mainly the result of the lack of earnings from the real estate transaction in France in the previous year’s period as well as negative currency effects. Adjusted for these effects, earnings before special items improved.

On 30 September 2014, METRO Cash & Carry operated 766 stores located in 28 countries. Of these stores, 107 were in Germany, 238 in Western Europe (excluding Germany), 290 in Eastern Europe and 131 in Asia.

Media-Saturn

Sales of Media-Saturn grew by 0.8 per cent in local currency in financial year 2013/14. In euros, they fell slightly by 0.3 per cent to €21.0 billion. Like-for-like sales declined by 0.9 per cent. A significant trend improvement occurred as the financial year progressed. In addition to successful marketing campaigns launched, among others, as part of the football World Cup, rising multichannel sales contributed to this positive reversal.

Online sales continued to grow dynamically. These sales increased by nearly 30 per cent to €1.4 billion during financial year 2013/14 and achieved 6.9 per cent of total sales.

In Germany, sales totalled €9.8 billion during financial year 2013/14 and were therefore slightly below the previous year’s level. Like-for-like sales declined by 1.9 per cent. However, trends improved considerably as the year progressed. In addition to positive stationary sales, the increased multichannel sales of Media-Saturn contributed to this turnaround.

Customer demand for the multichannel offering remains very strong. The online product range was expanded once again. At the end of September 2014, it consisted of nearly 66,000 items at mediamarkt.de and more than 49,000 at saturn.de. The in-store pick-up rate was about 40 per cent.

Key figures Media-Saturn 2013/14
in year-on-year comparison

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Change in % compared with the previous year’s period

 

 

 

 

 

 

 

 

 

9M 2013
€ million

12M 2012/13
€ million

12M 2013/14
€ million

in €

Currency effects in percentage points

in local currency

like-for-like sales in local currency

1

Before special items

Sales

14,405

21,053

20,981

−0.3

−1.2

0.8

−0.9

Germany

6,692

9,839

9,795

−0.4

0.0

−0.4

−1.9

Western Europe (excl. Germany)

5,784

8,341

8,356

0.2

−0.3

0.5

−0.1

Eastern Europe

1,908

2,819

2,831

0.4

−8.4

8.8

0.7

Asia/Africa

21

54

0

EBIT1

−33

299

335

12.0

EBIT margin (%)1

−0.2

1.4

1.6

Locations (number)

948

948

986

4.0

Selling space (1,000 m2)

3,022

3,022

3,070

1.6

Sales of Media-Saturn 2013/14
by region

Sales of Media-Saturn 2013/14 (pie chart)

In Western Europe (excluding Germany), sales rose by 0.2 per cent to €8.4 billion. In local currency, sales increased by 0.5 per cent compared with the previous year’s level. Like-for-like sales decreased only marginally. In many countries, additional market share was captured. Like-for-like sales declined in Sweden and Italy. But they rose in Spain, Portugal, the Netherlands and Switzerland.

In Eastern Europe, sales rose slightly by 0.4 per cent to €2.8 billion. They were softened in particular by negative exchange rate effects. In local currency, however, sales rose steeply by 8.8 per cent. Here, too, sales trends became very positive as the year progressed. Like-for-like sales rose by 0.7 per cent. In this area, Hungary and Turkey performed extremely well, generating double-digit gains.

The international share of sales was unchanged at 53.3 per cent during financial year 2013/14.

EBIT at Media-Saturn climbed to €244 million (2012/13: €184 million). This figure includes special items of €91 million. These items involved numerous restructuring and efficiency improvement measures, particularly in Germany. EBIT before special items climbed sharply from €299 million to €335 million. Sales-related declines in earnings were compensated through cost savings and margin improvements. In addition, the required risk provisions came in lower compared with the previous year and positively impacted earnings.

On 30 September 2014, Media-Saturn had 986 consumer electronics stores in 15 countries, including 415 in Germany, 367 in Western Europe (excluding Germany) and 204 in Eastern Europe.

Real

Sales at Real fell by 18.7 per cent to €8.4 billion during financial year 2013/14 due to the disposal of Real Eastern Europe (in local currency: –18.3 per cent). Like-for-like sales, in turn, declined by just 0.8 per cent.

In Germany, sales fell by 1.3 per cent to €7.9 billion. The like-for-like decline was 0.9 per cent. Trends improved as the year progressed. Real’s improved positioning played a major role in this business, which is known for its aggressive pricing. In particular, Real’s refurbished stores developed positively.

The sales share of own brand products continued to increase during financial year 2013/14, rising from 16.1 per cent to 16.3 per cent.

Sales in Eastern Europe dropped by 78.8 per cent to €0.5 billion as a result of the disposal of Real Eastern Europe.

Key figures Real 2013/14
in year-on-year comparison

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Change in % compared with the previous year’s period

 

 

 

 

 

 

 

 

 

9M 2013
€ million

12M 2012/13
€ million

12M 2013/14
€ million

in €

Currency effects in percentage points

in local currency

like-for-like sales in local currency

1

Revised presentation (for more information, see the notes to the group accounting principles and methods); the comparative periods have been adjusted accordingly

2

Before special items

Sales

7,261

10,366

8,432

−18.7

−0.3

−18.3

−0.8

Germany

5,744

8,043

7,939

−1.3

0.0

−1.3

−0.9

Eastern Europe

1,517

2,323

493

−78.8

−0.4

−78.4

EBIT1, 2

29

145

81

−44.1

EBIT margin (%)1, 2

0.4

1.4

1.0

Locations (number)

384

384

311

−19.0

Selling space (1,000 m2)

2,758

2,758

2,145

−22.2

Sales of Real 2013/14
by region

Sales of Real 2013/14 (pie chart)

EBIT at Real totalled €19 million during financial year 2013/14 (2012/13: €224 million). This included special items of €62 million relating almost exclusively to the closure of stores in Germany and the disposal of Real Turkey. By contrast, a special item resulting from the disposal of Real Eastern Europe had the opposite effect. EBIT before special items amounted to €81 million, compared with €145 million in the previous year’s period. This decline was largely due to the loss of earnings contributions from Real’s divested business in Eastern Europe. In Germany, EBIT before special items rose, largely due to earnings contributions from real estate transactions.

On 30 September 2014, Real had a total of 307 hypermarkets in Germany and 4 in Romania.

Galeria Kaufhof

Sales of Galeria Kaufhof rose by 0.5 per cent to €3.1 billion during financial year 2013/14. Like-for-like sales also grew by 0.5 per cent.

In Germany, sales of Galeria Kaufhof totalled €2.9 billion, an increase of 0.7 per cent compared with the previous year’s figure. Like-for-like sales rose by 0.8 per cent. In addition to the department store’s attractive product range, the sales growth in online retail also contributed to the increase. The online operations developed very positively. Galeria.de and sportarena.de boosted sales by 64 per cent to €63 million during financial year 2013/14.

Key figures Galeria Kaufhof 2013/14
in year-on-year comparison

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Change in % compared with the previous year’s period

 

 

 

 

 

 

 

 

 

9M 2013
€ million

12M 2012/13
€ million

12M 2013/14
€ million

in €

Currency effects in percentage points

in local currency

like-for-like sales in local currency

1

Revised presentation (for more information, see the notes to the group accounting principles and methods); the comparative periods have been adjusted accordingly

2

Before special items

Sales

2,086

3,082

3,099

0.5

0.0

0.5

0.5

Germany

1,955

2,899

2,920

0.7

0.0

0.7

0.8

Western Europe (excl. Germany)

131

183

178

−2.8

0.0

−2.8

−2.8

EBIT1, 2

40

229

193

−15.8

EBIT margin (%)1, 2

1.9

7.4

6.2

Locations (number)

137

137

137

0.0

Selling space (1,000 m2)

1,439

1,439

1,446

0.5

Sales of Galeria Kaufhof 2013/14
by region

Sales of Galeria Kaufhof 2013/14 (pie chart)

In Western Europe (excluding Germany), sales fell by 2.8 per cent to €0.2 billion. This was largely the result of a slight decline in the Belgian textile market.

EBIT at Galeria Kaufhof totalled €193 million during financial year 2013/14 (2012/13: €214 million). EBIT before special items also amounted to €193 million (2012/13: €229 million). Among other things, the decline was due to income from real estate transactions in the same period of the previous year.

As of 30 September 2014, the store network of Galeria Kaufhof comprised 137 department stores: 122 locations in Germany and 15 in Belgium.

Others

The Others segment comprises, among others, METRO AG as the management holding company of METRO GROUP, the procurement organisation in Hong Kong, which also operates on behalf of third parties, as well as logistics services and real estate activities of METRO PROPERTIES, which are not attributed to any sales lines. These include speciality centres, warehouses and head offices.

In financial year 2013/14, sales in the Others segment totalled €10 million (2012/13: €14 million). Among others, sales included commissions from third-party business via METRO GROUP’s procurement organisation in Hong Kong.

EBIT totalled €–91 million in financial year 2013/14 (2012/13: €–145 million). This figure includes positive special items totalling €85 million (2012/13: €91 million). Among other things, this comprises risk provisions for legal disputes. EBIT before special items improved significantly from €–54 million to €–6 million. This turnaround primarily was the result of increased income from real estate transactions. Individual office properties at the Düsseldorf headquarters was sold at the end of June. The timing for such a transaction was very favourable due to the positive development of the real estate market.