METRO AG

Quarterly Report • Feb 17, 2025

H E T R O

QUARTERLY STATEMENT

3M / Q1 2024/25

GOOD START IN Q1 2024/25: METRO ACHIEVES 7.1\% SALES GROWTH (CURRENCY- AND PORTFOLIO-ADJUSTED), GROWTH ACROSS ALL SEGMENTS AND CHANNELS

SALES, EARNINGS

Sales

In Q1 2024/25, sales in local currency grew by $7.1 \%$. All segments, in particular the segment East, the segment West, and Russia, and all sales channels contributed to growth. In local currency, sales in storebased business increased to $€ 6.4$ billion ( $+4.5 \%$ ), delivery sales to $€ 2.1$ billion ( $+15.3 \%$ ) and METRO MARKETS sales to $€ 40$ million ( $+17.1 \%$ ), driven by the HoReCa business. Total sales grew by $5.6 \%$ to $€ 8.6$ billion and were influenced by negative exchange rate effects, particularly in Russia and Türkiye.

METRO sales channels and segments

	Sales (€ million)		Change (€)		Currency effects		Change (local currency)
	$\begin{gathered} \text { Q1 } \ 2023 / 24 \end{gathered}$	$\begin{gathered} \text { Q1 } \ 2024 / 25 \end{gathered}$	$\begin{gathered} \text { Q1 } \ 2023 / 24 \end{gathered}$	$\begin{gathered} \text { Q1 } \ 2024 / 25 \end{gathered}$	$\begin{gathered} \text { Q1 } \ 2023 / 24 \end{gathered}$	$\begin{gathered} \text { Q1 } \ 2024 / 25 \end{gathered}$	$\begin{gathered} \text { Q1 } \ 2023 / 24 \end{gathered}$	$\begin{gathered} \text { Q1 } \ 2024 / 25 \end{gathered}$
Total	8,115	8,572	0.1\%	5.6\%	$-6.1 \%$	$-1.5 \%$	6.2\%	7.1\%
of which Store-based and other business	6,209	6,399	$-3.8 \%$	3.0\%	$-6.0 \%$	$-1.5 \%$	2.3\%	4.5\%
of which delivery	1,871	2,133	14.6\%	14.0\%	$-6.3 \%$	$-1.3 \%$	20.9\%	15.3\%
of which METRO MARKETS	34	40	61.7\%	17.1\%	0.0\%	0.0\%	61.7\%	17.1\%
Segments
Germany	1,389	1,410	3.4\%	1.5\%	0.0\%	0.0\%	3.4\%	1.5\%
West	3,339	3,493	5.6\%	4.6\%	0.0\%	0.0\%	5.6\%	4.6\%
Russia	684	694	$-22.9 \%$	1.4\%	$-42.8 \%$	$-6.9 \%$	19.9\%	8.4\%
East	2,644	2,911	$-0.7 \%$	10.1\%	$-5.9 \%$	$-2.8 \%$	5.2\%	12.9\%
Other	59	64	16.0\%	8.4\%	0.0\%	0.0\%	16.0\%	8.4\%

As of 31 December 2024, the store network comprised 623 locations, of which 522 were out-of-store (OOS) and 94 were depots.

Earnings

In Q1 2024/25, adjusted EBITDA ${ }^{1}$ increased slightly to $€ 412$ million (Q1 2023/24: €407 million), due to sales growth. In contrast, cost inflation continued to have an opposing effect in Q1 2024/25. Adjusted for exchange rate effects, adjusted EBITDA increased by $€ 15$ million compared to the same period of the previous year, driven in particular by growth in the segment East, Russia, and the segment West. In Germany, adjusted EBITDA decreased slightly due to cost inflation and price investments. The segment

[^0]
[^0]: ${ }^{1}$ New definition of adjusted EBITDA and transformation costs from 1 October 2024 (see Annual Report 2023/24), incl. prior-year adjustment.

Others was impacted in particular by lower rental income at METRO Properties. Negative exchange rate effects mainly affected Türkiye and Russia.

The earnings contributions from real estate transactions amounted to €1 million (Q1 2023/24: €28 million). The previous year mainly included two property transactions in Türkiye. Transformation costs ${ }^{1}$ totalling €5 million were incurred (Q1 2023/24: €1 million transformation gain). Overall, EBITDA decreased to €408 million (Q1 2023/24: €436 million).

€ million	Adjusted EBITDA ${ }^{1}$			Transformation costs $(+)$, or transformation gains $(-)^{\prime}$		Earnings contributions $(+)$ from real estate transactions		EBITDA
	Q1 2023/24	Q1 2024/25	Change (€)	Q1 2023/24	Q1 2024/25	Q1 2023/24	Q1 2024/25	Q1 2023/24	Q1 2024/25
Total	407	412	5	$-1$	5	28	1	436	408
Germany	66	59	$-6$	0	0	0	0	66	59
West	179	186	7	0	1	1	0	181	185
Russia	44	53	8	0	0	0	0	44	53
East	140	148	8	0	0	0	0	140	147
Other	$-22$	$-29$	$-7$	$-1$	4	27	1	6	$-32$
Consolidation	$-1$	$-5$	$-4$	0	0	0	0	$-1$	$-5$

${ }^{1}$ New definition of adjusted EBITDA and transformation costs from 1 October 2024 (see Annual Report 2023/24), incl. prior-year adjustment.

Cash flow

The decline in cash flow from operating activities is mainly due to the slightly earlier settlement of trade liabilities in Germany due to calendar effects, as well as credit card receivables resulting from the temporary extension of payment terms at METRO Russia. As a result, METRO Russia's cash and cash equivalents decreased to $€ 70$ million.

Cash flow from investing activities includes investments in and divestments of property, plant and equipment, intangible assets, and financial assets, as well as proceeds and payments from the disposal of subsidiaries. The latter are not part of the free cash flow stated below. In the previous year, these primarily included the sale of the remaining shares in WM Holding (HK) Limited, totalling €257 million, which represented METRO's former business in China.

Cash flow from financing activities changed primarily due to inflows and outflows from medium- and long-term financing programmes as well as lease payments.

The free cash flow is derived from the cash flow statement according to the following overview.

FREE CASH FLOW

€ million	Q1 2023/24	Q1 2024/25
Cash flow from operating activities	$\mathbf{2 8 6}$	$\mathbf{- 1 4}$
Investments without (investments in) monetary assets	-158	$\mathbf{- 1 5 6}$
Divestments	63	$\mathbf{3}$
Lease payments	-145	$\mathbf{- 1 3 9}$
Interest paid and received	-9	$\mathbf{- 4}$
Other financing activities	-7	$\mathbf{- 1 3}$
Free cash flow	$\mathbf{3 0}$	$\mathbf{- 3 2 4}$

OUTLOOK

Outlook of METRO unchanged

The outlook is based on the assumption of stable exchange rates without further adjustments to the portfolio and before transformation costs according to the new definition (transformation costs expected in 2024/25: up to $€ 150$ million). The geopolitical situation is expected to remain unchanged. The expectations for the further macroeconomic development are explained in the chapter on macroeconomic parameters in the Annual Report 2023/24. The relevant opportunities and risks that could influence the outlook are explained in the opportunities and risk report in the Annual Report 2023/24.

Sales

The Management Board expects a total sales growth of 3\% to 7\% (2023/24: 6\%, absolute sales of €31 billion) ${ }^{2}$ for financial year 2024/25. Growth will be driven by all segments. In view of the persistently high volatility, sales in the segment Russia are expected to grow within the guidance range. The segments Germany and West are expected to grow below the guidance range, while growth above the guidance range is likely in the segments East and Others.

Earnings

In addition, the Management Board anticipates a slight increase in adjusted EBITDA (Basis of comparison from 2023/24: €1,100 million, based on €1,058 million² and additionally transformation costs around €40 million according to the new definition). The sales growth from sCore generally leads to EBITDA growth. However, this will be offset in financial year 2024/25 by persistently high cost inflation. In the segments Germany and Russia, adjusted EBITDA is expected on a level with the previous year. In the segment West, adjusted EBITDA will rise slightly, while the adjusted EBITDA will decrease slightly in the segment Others. In the segment East, adjusted EBITDA will grow moderately.

[^0]
[^0]: ${ }^{2}$ Currency-adjusted, portfolio-adjusted.

INCOME STATEMENT

€ million	Q1 2023/24	Q1 2024/25
Sales revenue	8,115	8,572
Cost of sales	$-6,754$	$-7,143$
Gross profit on sales	1,361	1,429
Other operating income	193	151
Selling expenses	$-1,087$	$-1,118$
General administrative expenses	$-203$	$-238$
Other operating expenses	$-39$	$-27$
Impairment of financial assets	$-1$	$-9$
Income from companies accounted for using the equity method	3	4
Earnings before interest and taxes (EBIT)	227	193
Other investment result	21	$-3$
Interest income	7	11
Interest expense	$-44$	$-55$
Other financial result	$-18$	$-21$
Net financial result	$-34$	$-68$
Earnings before taxes (EBT)	193	125
Income taxes	$-64$	$-50$
Profit for the period	130	75
Profit or loss for the period attributable to non-controlling interests	$-1$	0
Profit or loss for the period attributable to the shareholders of METRO AG	130	75
Earnings per share in $€$ (basic $=$ diluted)	0.36	0.21

BALANCE SHEET

ASSETS

	31.12 .2023	30.9 .2024	$\mathbf{3 1 . 1 2 . 2 0 2 4}$
Non-current assets	$\mathbf{6 , 8 4 9}$	$\mathbf{7 , 1 9 2}$	$\mathbf{7 , 1 6 2}$
Goodwill	717	721	$\mathbf{7 2 3}$
Other intangible assets	620	632	$\mathbf{6 2 4}$
Property, plant and equipment	5,036	5,364	$\mathbf{5 , 3 4 8}$
Investment property	96	86	$\mathbf{8 1}$
Financial assets	68	59	$\mathbf{5 6}$
Investments accounted for using the equity method	99	97	$\mathbf{1 0 7}$
Other financial assets	56	42	$\mathbf{4 0}$
Other non-financial assets	13	15	$\mathbf{1 1}$
Deferred tax assets	144	176	$\mathbf{1 7 2}$
Current assets	$\mathbf{4 , 7 4 8}$	$\mathbf{4 , 5 4 4}$	$\mathbf{5 , 2 7 1}$
Inventories	2,397	2,258	$\mathbf{2 , 4 7 8}$
Trade receivables	680	688	$\mathbf{7 4 2}$
Financial assets	1	1	$\mathbf{1}$
Other financial assets	545	404	$\mathbf{6 2 3}$
Other non-financial assets	389	317	$\mathbf{3 2 5}$
Income tax assets	104	83	$\mathbf{9 3}$
Cash and cash equivalents	631	794	$\mathbf{1 , 0 1 0}$
Assets held for sale	0	0	$\mathbf{0}$
	$\mathbf{1 1 , 5 9 7}$	$\mathbf{1 1 , 7 3 6}$	$\mathbf{1 2 , 4 3 3}$

EQUITY AND LIABILITIES

million €	31.12 .2023	30.9 .2024	31.12 .2024
Equity	2,150	1,669	1,760
Share capital	363	363	363
Capital reserve	4,754	4,431	4,431
Reserves retained from earnings	$-2,978$	$-3,125$	$-3,035$
Equity before non-controlling interests	2,139	1,668	1,759
Non-controlling interests	11	1	1
Non-current liabilities	3,474	3,569	3,869
Provisions for post-employment benefits plans and similar obligations	385	405	406
Other provisions	171	142	146
Financial liabilities	2,769	2,866	3,167
Other financial liabilities	24	34	33
Other non-financial liabilities	49	37	33
Deferred tax liabilities	75	85	85
Current liabilities	5,973	6,498	6,804
Trade liabilities	3,847	3,813	3,958
Provisions	274	297	264
Financial liabilities	560	1,153	1,401
Other financial liabilities	759	823	711
Other non-financial liabilities	316	235	280
Income tax liabilities	217	176	191
Liabilities related to assets held for sale	0	0	0
	11,597	11,736	12,433

CASH FLOW STATEMENT

million €	Q1 2023/24	Q1 2024/25
EBIT	227	193
Depreciation/amortisation/impairment losses/reversal of impairment losses of fixed assets excl. financial investments	209	215
Change in provision for pensions and other provisions	$-23$	$-32$
Change in net working capital	$-22$	$-163$
Income taxes paid (-)/received	$-60$	$-43$
Reclassification of gains (-)/losses (+) from the disposal of fixed assets	$-29$	0
Lease payments	13	4
Other	$-28$	$-188$
Cash flow from operating activities	286	$-14$
Acquisition of subsidiaries	0	0
Investments in property, plant, and equipment and in investment property (excl. right-ofuse assets)	$-117$	$-120$
Other investments	$-41$	$-36$
Investments in monetary assets	$-1$	0
Disposals of subsidiaries	257	0
Divestments	63	3
Disposal of financial investments	0	2
Cash flow from investing activities	160	$-152$
Dividends paid
to METRO AG shareholders	0	0
to other shareholders	0	$-4$
Proceeds from borrowings	523	618
Redemption of borrowings	$-767$	$-76$
Lease payments	$-145$	$-139$
Interest paid	$-15$	$-14$
Interest received	6	10
Other financing activities	$-7$	$-13$
Cash flow from financing activities	$-404$	382
Total cash flows	42	217
Currency effects on cash and cash equivalents	$-2$	0
Total change in cash and cash equivalents	40	216
Cash and cash equivalents as of 1 October	591	794
Cash and cash equivalents as of 30 September	631	1,010

FINANCIAL CALENDAR

Annual General Meeting 2025	Wednesday	19 February 2025	$10: 00$
Half-year financial report H1/Q2 2024/25	Thursday	15 May 2025	$18: 30$
Communication Q3/9M 2024/25	Monday	28 July 2025	$18: 30$

Times according to German time

IMPRINT

METRO AG
Metro Street 1
Investor Relations
40235 Düsseldorf
e-mail investorrelations@metro.de
P.O. Box 230361
40089 Düsseldorf
@metro.de
http://www.metroag.de
Corporate Communications
Publication date
Telephone +49 (211) 6886-4252
5 February 2025, 18:30
e-mail presse@metro.de
Visit the METRO AG website at www.metroag.de for comprehensive information and reports on METRO AG.

DISCLAIMER

This quarterly statement contains forward-looking statements. They are based on certain assumptions and expectations at the time of publication of this release. Forward-looking statements are therefore subject to risks and uncertainties and may differ materially from actual results. In particular, with regard to forwardlooking statements, many of the risks and uncertainties are determined by factors that are beyond METRO's control and cannot be estimated with certainty at this time. These include, among others, future market conditions and economic developments, the behaviour of other market participants, the achievement of expected synergy effects, as well as legal and political decisions.

METRO also undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of publication of these materials.