Sales and earnings developments

At €46.3 billion, group sales were 2.2 per cent lower than the previous year’s figure in the short financial year 2013 (9M 2012: €47.4 billion). Sales declined by 1.3 per cent in local currencies. This can be attributed to the persistently challenging economic environment in many parts of Europe, the above-mentioned portfolio changes as well as negative currency effects. Adjusted for the disposal of MAKRO Cash & Carry in the United Kingdom, the divestment of Real’s Eastern European business and Media Markt’s withdrawal from China, sales were 0.9 per cent higher than during the previous year’s period.

Development of group sales

by sales line and region

  Download XLS (24 kB)

 

 

 

 

Change in % compared with the previous year’s period

 

 

 

 

 

 

 

 

12M 2012
€ million

9M 2012
€ million

9M 2013
€ million

in €

Currency effects in percentage points

in local currencies

METRO Cash & Carry

31,636

23,029

22,559

–2.0

–1.5

–0.5

Media-Saturn

20,970

14,322

14,405

0.6

–0.4

1.0

Real

11,017

7,912

7,261

–8.2

–0.3

–7.9

Galeria Kaufhof

3,092

2,096

2,086

–0.5

0.0

–0.5

Others

24

21

10

–50.3

0.0

–50.3

METRO GROUP

66,739

47,380

46,321

–2.2

–0.9

–1.3

thereof Germany

25,630

17,847

17,840

0.0

0.0

0.0

thereof international

41,108

29,533

28,481

–3.6

–1.5

–2.1

Western Europe (excl. Germany)

19,808

14,281

13,664

–4.3

–0.1

–4.2

Eastern Europe

17,752

12,584

12,011

–4.5

–2.3

–2.2

Asia/Africa

3,548

2,669

2,805

5.1

–4.6

9.7

Group sales of METRO GROUP 9M 2013

by region

Group sales of METRO GROUP 9M 2013 (pie chart)

Sales in Germany were stable at €17.8 billion. International sales, however, declined by 3.6 per cent, and by 2.1 per cent in local currencies. As a result, the international share of sales decreased slightly from 62.3 per cent to 61.5 per cent. Sales in Western Europe declined by 4.3 per cent to €13.7 billion (in local currencies: –4.2 per cent). This was partly due to the difficult economic situation in Southern Europe and, in particular, to the divestment of MAKRO Cash & Carry in the United Kingdom. Adjusted for portfolio changes, sales in Western Europe fell by just 1.4 per cent. Sales in Eastern Europe decreased by 4.5 per cent to €12.0 billion (in local currencies: –2.2 per cent), particularly as a result of the divestment of the Real hypermarkets. Growth momentum continued in the Asia/Africa region: here, sales rose markedly by 5.1 per cent, and by as much as 9.7 per cent in local currencies.

At €703 million, METRO GROUP’s EBIT was €294 million higher in the short financial year 2013 than in the previous year’s period. It includes special items totalling €25 million (9M 2012: €297 million). These special items include positive effects from the disposal of Real’s Eastern European business. These were partially offset by negative effects, above all from the insolvency of Praktiker AG and its subsidiaries as well as restructuring expenses and goodwill impairments. In addition, these special items included expenses arising from the repositioning and streamlining of the non-food assortment at METRO Cash & Carry.

Special items are non-recurring transactions such as restructurings 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 chapter “Special items”.

Development of group EBITDA/EBIT and EBITDA/EBIT of the sales lines

  Download XLS (24 kB)

 

EBITDA1

EBIT1

 

 

 

 

 

 

 

€ million

12M 2012

9M 2012

9M 2013

12M 2012

9M 2012

9M 2013

1

Before special items

2

Adjustment of previous year (see chapter “Notes to the group accounting principles and methods”)

METRO Cash & Carry2

1,202

641

634

951

459

442

Media-Saturn

625

204

167

326

–6

–33

Real

276

134

82

102

–4

–1

Galeria Kaufhof

240

55

62

136

–24

–16

Real Estate

1,035

686

702

652

411

455

Others

–57

–41

–24

–168

–124

–105

Consolidation

–25

–9

–20

–20

–5

–15

METRO GROUP2

3,296

1,669

1,603

1,979

706

728

METRO GROUP’s EBIT before special items increased from €706 million to €728 million in the short financial year 2013 – in spite of challenging market conditions and the price investments resulting from this.

Sales and earnings developments of the sales lines

METRO Cash & Carry

Sales of METRO Cash & Carry declined by 2.0 per cent in the short financial year 2013 (in local currencies: –0.5 per cent) to €22.6 billion. Like-for-like sales fell by 0.5 per cent. The exit from the UK market dampened sales growth; adjusted for this portfolio change, sales dropped by only 0.2 per cent. Higher sales with customers in the hotel, restaurant and catering (Horeca) business were more than offset by lower sales with SCO customers (services, companies, offices).

The delivery business continued its dynamic momentum and achieved strong growth of nearly 20 per cent to €2.0 billion (9M 2012: €1.6 billion). The own-brand share of sales also increased and amounted to 17.0 per cent of sales (9M 2012: 16.9 per cent).

Key figures METRO Cash & Carry 2013

in year-on-year comparison

  Download XLS (25 kB)

 

 

 

 

Change in % compared
with the previous year’s period

 

 

 

 

 

 

 

 

 

12M 2012
€ million

9M 2012
€ million

9M 2013
€ million

in €

Currency effects in percent age points

in local currencies

like-for-like (local currencies)

1

Adjustment of previous year (see chapter “Notes to the group accounting principles and methods”)

2

Before special items

Sales

31,636

23,029

22,559

–2.0

–1.5

–0.5

–0.5

Germany

4,955

3,563

3,444

–3.3

0.0

–3.3

–3.4

Western Europe (excl. Germany)

11,153

8,235

7,750

–5.9

–0.2

–5.7

–1.6

Eastern Europe

12,120

8,670

8,587

–1.0

–2.6

1.6

–0.2

Asia/Africa

3,407

2,562

2,778

8.5

–4.8

13.3

5.7

EBITDA1

1,2022

6412

6342

–1.2

EBIT1

9512

4592

4422

–3.7

EBIT margin (%)

3.02

2.02

2.02

Locations (number)

743

722

752

4.2

Selling space (1,000 m2)

5,484

5,369

5,554

3.4

On the positive side, sales trends improved distinctly in most countries during the third quarter.

Sales in Germany fell by 3.3 per cent to €3.4 billion during the reporting period. This decline was due largely to the difficult non-food business. Like-for-like sales fell by 3.4 per cent.

In Western Europe (excluding Germany), sales were dampened above all by the disposal of the cash & carry business of MAKRO Cash & Carry in the United Kingdom. The difficult economic environment in Southern Europe also weighed on non-food sales, in particular. Sales decreased by 5.9 per cent to €7.8 billion (in local currencies: –5.7 per cent). Adjusted for the investment of MAKRO Cash & Carry in the United Kingdom, sales declined by only 0.8 per cent. Like-for-like sales fell by 1.6 per cent.

Sales in Eastern Europe declined slightly by 1.0 per cent to €8.6 billion, but rose by 1.6 per cent in local currencies. Developments in Russia and Turkey as well as the positive trend reversal in Poland were particularly pleasing. Like-for-like sales in the region fell slightly by 0.2 per cent.

Sales in Asia/Africa continued to grow dynamically by 8.5 per cent to €2.8 billion (in local currencies: +13.3 per cent). In particular, China and India developed very positively. Like-for-like sales showed a marked increase of 5.7 per cent.

The share of international sales of METRO Cash & Carry rose slightly from 84.5 per cent to 84.7 per cent.

Sales of METRO Cash & Carry 9M 2013

by region

Sales of METRO Cash & Carry 9M 2013 (pie chart)

METRO Cash & Carry’s EBIT increased by €80 million to €339 million. Expenditures arising from the repositioning and streamlining of the non-food assortment, goodwill impairments and restructuring expenses impacted the result. EBIT before special items fell only slightly by 3.7 per cent to €442 million. The sales-induced decline in earnings and continued price investments in the food business were largely compensated by cost-cutting and efficiency-enhancing measures as well as the disposal of the loss-making UK business. With the stabilisation of its EBIT margin before special items at 2.0 per cent, METRO Cash & Carry confirmed its profitability in a difficult economic environment.

As of 30 September 2013, METRO Cash & Carry operated 752 stores in 29 countries: 107 stores in Germany, 236 in Western Europe (excluding Germany), 286 in Eastern Europe and 123 in Asia/Africa.

Media-Saturn

Media-Saturn further strengthened its European market leadership in the short financial year 2013. All in all, the sales line managed to gain market share in 9 out of 15 countries. Against this backdrop, sales increased despite the persistently difficult economic environment by 0.6 per cent to €14.4 billion (in local currencies: +1.0 per cent). Adjusted for the withdrawal from the Chinese market, sales actually grew by 1.1 per cent. Like-for-like sales, in turn, declined by 2.1 per cent. Online sales posted strong growth of 75.0 per cent to €0.8 billion, reaching a share of 5.9 per cent of total sales at Media-Saturn.

Key figures Media-Saturn 2013

in year-on-year comparison

  Download XLS (25 kB)

 

 

 

 

Change in % compared
with the previous year’s period

 

 

 

 

 

 

 

 

 

12M 2012
€ million

9M 2012
€ million

9M 2013
€ million

in €

Currency effects in percent age points

in local currencies

like-for-like (local currencies)

1

Before special items

Sales

20,970

14,322

14,405

0.6

–0.4

1.0

–2.1

Germany

9,635

6,488

6,692

3.1

0.0

3.1

1.6

Western Europe (excl. Germany)

8,471

5,914

5,784

–2.2

–0.1

–2.1

–5.9

Eastern Europe

2,731

1,820

1,908

4.8

–3.1

7.9

–2.9

Asia/Africa

132

100

21

–78.5

0.0

–78.5

EBITDA

6251

2041

1671

–18.1

EBIT

3261

–61

–331

EBIT margin (%)

1.61

0.01

–0.21

Locations (number)

942

908

948

4.4

Selling space (1,000 m2)

3,035

2,940

3,022

2.8

In Germany, sales continued their strongly positive development during the short financial year 2013 and grew by 3.1 per cent to €6.7 billion. Even in the absence of major sports events such as the Olympic Games or international football tournaments, like-for-like sales increased by 1.6 per cent. Media-Saturn continued to increase its market share in both sales brands. Customer demand remained strong both in pure online retailing and across the sales line’s multichannel product offering. We have continued to expand our multichannel offering in the Internet. As of the end of September 2013, it comprises more than 20,000 items at Mediamarkt.de and Saturn.de. At more than 40 per cent, the collection rate remained at a high level.

Sales of Media-Saturn 9M 2013

by region

Sales of Media-Saturn 9M 2013 (pie chart)

Sales in Western Europe (excluding Germany) declined by 2.2 per cent to €5.8 billion (in local currencies: –2.1 per cent). Like-for-like sales fell by 5.9 per cent compared with the previous year's period. This was due largely to weak sales trends in the crisis-ridden Southern European countries as well as in the Netherlands and Sweden. In addition, the effect of value added tax increases dampened sales in the Netherlands and Spain.

In Eastern Europe, sales posted strong growth of 4.8 per cent (in local currencies: +7.9 per cent) to €1.9 billion. Like-for-like sales declined by 2.9 per cent. While sales weakened in Russia, trends in Poland were very positive.

The international share of sales at Media-Saturn declined from 54.7 per cent to 53.5 per cent.

Media-Saturn’s EBIT amounted to €–54 million (9M 2012: €–3 million). Special items were incurred in connection with restructurings in Sweden and Turkey, the conversion of Saturn stores into Media Markt stores in some countries and as positive effects for risk provisions previously created for the withdrawal from China. EBIT before special items changed from €–6 million to €–33 million. This reflected price investments and the higher sales share of new media at the cost of brown goods. In addition, the downward sales trends in some countries in Western and Eastern Europe led to lower results. By contrast, more efficient cost structures had a positive impact. The previous year’s period was still impacted by operating losses from the business activities in China that have since been dropped.

At the end of September 2013, the store network of Media-Saturn comprised 948 consumer electronics stores in 15 countries: 405 in Germany, 362 in Western Europe (excluding Germany) and 181 in Eastern Europe.

Real

The disposal of activities in Russia, Romania and Ukraine had a strong impact on Real’s sales in the short financial year 2013. Sales decreased distinctly by 8.2 per cent to €7.3 billion (in local currencies: –7.9 per cent). Like-for-like sales, in turn, declined by just 2.1 per cent.

Key figures Real 2013

in year-on-year comparison

  Download XLS (25 kB)

 

 

 

 

Change in % compared
with the previous year’s period

 

 

 

 

 

 

 

 

 

12M 2012
€ million

9M 2012
€ million

9M 2013
€ million

in €

Currency effects in percent age points

in local currencies

like-for-like (local currencies)

1

Before special items

Sales

11,017

7,912

7,261

–8.2

–0.3

–7.9

–2.1

Germany

8,117

5,818

5,744

–1.3

0.0

–1.3

–0.5

Eastern Europe

2,900

2,094

1,517

–27.6

–1.0

–26.6

–10.6

EBITDA

2761

1341

821

–38.9

EBIT

1021

–41

–11

87.6

EBIT margin (%)

0.91

–0.11

0.01

Locations (number)

421

420

384

–8.6

Selling space (1,000 m2)

3,043

3,036

2,758

–9.2

Sales of Real 9M 2013

by region

Sales of Real 9M 2013 (pie chart)

Sales in Germany declined by 1.3 per cent to €5.7 billion. The like-for-like drop was 0.5 per cent. The sales share of own-brand products developed favourably, increasing from 16.0 per cent to 16.4 per cent.

Sales in Eastern Europe fell by 27.6 per cent to €1.5 billion in the short financial year 2013 (in local currencies: –26.6 per cent). This decline is primarily due to the disposal of Real’s business in Russia, Romania and Ukraine. Like-for-like sales declined by 10.6 per cent, due mostly to continued consumer reticence in Poland.

The international share of sales at Real contracted in response and declined from 26.5 per cent to 20.9 per cent.

EBIT grew markedly to €118 million from €0 million. It includes positive special items totalling €119 million (9M 2012: €4 million), which primarily resulted from the divestment of Real’s Eastern European business. EBIT before special items improved to €–1 million from €–4 million. In Germany, EBIT before special items increased by €8 million to €–9 million. In the process, increased energy and personnel expenses were offset by reducing other store-related selling expenses.

At the end of September 2013, the store network of Real comprised 384 hypermarkets in 5 countries: 310 in Germany and 74 in Eastern Europe.

Galeria Kaufhof

As a result of four store closures in the previous year, sales of Galeria Kaufhof declined slightly by 0.5 per cent to €2.1 billion in the short financial year 2013. Like-for-like sales, in turn, grew by 0.9 per cent.

In Germany, Galeria Kaufhof posted sales of €2.0 billion in the short financial year 2013, 0.5 per cent less than in the previous year’s period due to store closures. Like-for-like sales, however, grew by 1.0 per cent. Particularly strong growth was achieved in the textile assortment during the reporting period, especially in ready-to-wear clothing and accessories. As a result, Galeria Kaufhof outgrew the textile market and gained market share, particularly in women’s and children’s clothing. In addition, Galeria Kaufhof more than doubled its online sales to €24 million.

Key figures Galeria Kaufhof 2013

in year-on-year comparison

  Download XLS (24 kB)

 

 

 

 

Change in % compared
with the previous year’s period

 

 

 

 

 

 

 

 

 

12M 2012
€ million

9M 2012
€ million

9M 2013
€ million

in €

Currency effects in percent age points

in local currencies

like-for-like (local currencies)

1

Before special items

Sales

3,092

2,096

2,086

–0.5

0.0

–0.5

0.9

Germany

2,908

1,964

1,955

–0.5

0.0

–0.5

1.0

Western Europe (excl. Germany)

184

132

131

–0.6

0.0

–0.6

–0.6

EBITDA

240

55

621

13.9

EBIT

136

–24

–161

34.1

EBIT margin (%)

4.4

–1.2

–0.81

Locations (number)

137

137

137

0.0

Selling space (1,000 m2)

1,441

1,440

1,439

–0.1

Sales of Galeria Kaufhof 9M 2013

by region

Sales of Galeria Kaufhof 9M 2013 (pie chart)

In Western Europe (excluding Germany), sales fell by 0.6 per cent to €0.1 billion. Like-for-like sales also declined by 0.6 per cent.

EBIT slipped to €–32 million (9M 2012: €–24 million). The additional measures taken to optimise the network of locations clearly paid off. EBIT before special items improved by €8 million to €–16 million. This can be attributed largely to cost optimisation measures.

At the end of September 2013, Galeria Kaufhof had 137 stores: 122 in Germany and 15 in Belgium.

Real Estate

The Real Estate segment comprises all real estate assets owned by METRO GROUP as well as real estate-related services and contributes to our company’s value creation.

Property locations (565 locations)

by region

Property locations (565 locations) (pie chart)

As of 30 September 2013, METRO GROUP owned 565 locations (31 December 2012: 620).

The segment’s EBIT increased to €447 million from €368 million during the short financial year 2013. The increase can be attributed to higher income from portfolio transactions, particularly from the disposal of the remaining French METRO Cash & Carry stores. This disposal income is offset by lower rental incomes as a result of divestments and higher real estate impairments. It includes positive special items from the disposal of Real’s Eastern European business as well as negative special items from the insolvency of Praktiker and impairments in connection with portfolio adjustments. EBIT before special items increased by €44 million to €455 million.

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. In the short financial year 2013, sales in the “others” segment declined to €10 million (9M 2012: €21 million). Sales mostly comprised commissions from the Hong Kong procurement organisation’s third-party business as well as from logistics.

In the reporting period, EBIT totalled €–104 million (9M 2012: €–184 million). This includes special items for expenses related to the change of the new financial year as well as risk provisions in relation to the effects of the insolvency of Praktiker AG and its subsidiaries. This was netted against reversals of provisions for restructurings and court proceedings involving shareholders. EBIT before special items improved markedly to €–105 million from €–124 million. This can be attributed largely to improved cost structures.