Interim / Quarterly Report • Aug 2, 2016
Interim / Quarterly Report
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| 3 | Overview |
|---|---|
| 4 | Sales, earnings and financial position |
| 6 | Sales lines |
| 6 | METRO Cash & Carry |
| 8 | Media-Saturn |
| 9 | Real |
| 10 | Others |
| 11 | Outlook |
| 12 | Store network |
| 13 | Reconciliation of special items |
| 15 | Income statement |
| 16 | Balance sheet |
| 17 | Cash flow statement |
| 18 | Segment reporting |
| 20 | Financial calendar and imprint |
Like-for-like sales of METRO GROUP unchanged from the previous year's quarter
Including negative currency effects of 3.1 percentage points, sales declined by 2.7% to €13.6 billion: sales in local currency rose by 0.4%
Further progress achieved regarding the transformation and once more an increase in online and delivery sales
EBIT amounted to €-36 million (Q3 2014/15: €175 million) and includes special items of METRO GROUP of €190 million
EBIT before special items: €154 million (Q3 2014/15: €209 million) – negative currency effects of €25 million dampened earnings
EPS before special items rose to €0.24 (Q3 2014/15: €0.07)
Like-for-like sales growth of 0.1%: therefore twelve consecutive quarters of positive development
Sales: -4.5% (in local currency: +0.2%)
Delivery sales increases in local currency by more than 20%
Development in Russia with significant positive trend
Like-for-like sales up 1.2%; eighth consecutive quarter with positive development
Sales: +1.5% (in local currency: +3.2%)
Like-for-like sales in Germany rose by 3.8%
Online generated sales of the Media Markt and Saturn sales brands increased by around 35%
Real Like-for-like sales declined by 3.5%
Sales: -6.0% due partly to store divestments
Like-for-like sales up 0.2%
Sales declined by 1.6% to €44.3 billion; sales in local currency rose by 0.4%
EBIT amounted to €1,170 million (9M 2014/15: €487 million)
EBIT before special items: €992 million (9M 2014/15: €1,076 million) – negative currency effects of €72 million dampened earnings
EPS before special items: €1.19 (9M 2014/15: €1.23)
METRO GROUP guidance for 2015/16 confirmed
| € million | 9M 2014/15 | 9M 2015/16 | Change |
|---|---|---|---|
| Sales | 44,977 | 44,253 | -1.6% |
| Germany | 17,180 | 17,343 | 1.0% |
| International | 27,797 | 26,909 | -3.2% |
| International share of sales | 61.8% | 60.8% | - |
| EBITDA2 | 1,763 | 1,684 | -4.4% |
| EBIT | 487 | 1,170 | >100% |
| EBIT2 | 1,076 | 992 | -7.9% |
| Earnings before taxes (EBT)2 | 807 | 766 | -5.1% |
| Profit or loss for the period3, 4 | 125 | 460 | >100% |
| Profit or loss for the period2, 3, 4 | 400 | 389 | -3.0% |
| Earnings per share (€)4 | 0.38 | 1.41 | >100% |
| Earnings per share from continuing operations (€)2 | 0.94 | 1.19 | 27.0% |
| Earnings per share (€)2, 4 | 1.23 | 1.19 | -3.0% |
| Investments | 656 | 911 | 38.7% |
| Stores5 | 2,074 | 2,060 | -0.7% |
1From continuing operations 2Before special items 3Profit or loss for the period attributable to shareholders of METRO AG 4 Includes discontinued operations
5As of the closing date 30 June
| € million | Q3 2014/15 | Q3 2015/16 | Change |
|---|---|---|---|
| Sales | 13,967 | 13,589 | -2.7% |
| Germany | 5,130 | 5,167 | 0.7% |
| International | 8,837 | 8,422 | -4.7% |
| International share of sales | 63.3% | 62.0% | - |
| EBITDA2 | 435 | 391 | -10.0% |
| EBIT | 175 | -36 | - |
| EBIT2 | 209 | 154 | -26.7% |
| Earnings before taxes (EBT)2 | 115 | 114 | -1.2% |
| Profit or loss for the period3, 4 | 115 | -24 | - |
| Profit or loss for the period2, 3, 4 | 22 | 79 | >100% |
| Earnings per share (€)4 | 0.35 | -0.07 | - |
| Earnings per share from continuing operations (€)2 | 0.05 | 0.24 | >100% |
| Earnings per share (€)2, 4 | 0.07 | 0.24 | >100% |
| Investments | 269 | 385 | 43.3% |
| Stores5 | 2,074 | 2,060 | -0.7% |
From continuing operations Before special items Profit or loss for the period attributable to shareholders of METRO AG 4 Includes discontinued operations As of the closing date 30 June
METRO GROUP posted an increase of 0.2% in like-for-like sales for the first nine months of financial year 2015/16 (1 October 2015 to 30 June 2016). Like-for-like sales at METRO Cash & Carry and Media-Saturn maintained their positive momentum, while sales at Real declined. METRO GROUP sales in local currency increased by 0.4%. However, exchange rate developments in particular – mostly relating to the Russian rouble – caused reported sales to decline by 1.6% to €44.3 billion.
Like-for-like sales were unchanged year-to-year in Q3 2015/16 (1 April to 30 June 2016). Sales in local currency increased by 0.4%. However, exchange rate developments caused reported sales to decline by 2.7% to €13.6 billion.
Business transactions or a number of uniform business transactions that do not recur regularly, that are reflected in the income statement and that have a significant impact on business activities are classified as special items.
As a result, the presentation of special items better reflects ordinary business performance and contributes to a better understanding of the earnings position. An overview including the reconciliation of special items can be found on pages 13 and 14.
METRO GROUP EBIT totalled €1,170 million in the period from October 2015 to June 2016 (9M 2014/15: €487 million). This figure includes positive special items totalling €179 million (9M 2014/15: €-590 million). Special items concern gains from the disposal of METRO Cash & Carry Vietnam, which were realised in Q1 2015/16, and restructuring expenses. The high figure for special items in the previous year is largely due to goodwill impairment at Real. EBIT before special items amounted to €992 million (9M 2014/15: €1,076 million). This decline is almost exclusively due to foreign exchange losses of €72 million, primarily in relation to the Russian rouble. In addition, lower gains from real estate disposals were offset by positive effects from portfolio changes.
In Q3 2015/16, EBIT stood at €-36 million (Q3 2014/15: €175 million) and included special items of €190 million (Q3 2014/15: €35 million). These relate mainly to the implementation of the value creation plans at METRO Cash & Carry. EBIT before special items totalled €154 million (Q3 2014/15: €209 million). EBIT before special items thus declined by €56 million, which is due in particular to developments at Media-Saturn, lower gains from real estate disposals and currency effects. At €25 million, negative currency effects accounted for nearly half of this decline.
The net financial result amounted to €-240 million in the reporting period (9M 2014/15: €-275 million). This figure includes special items totalling €15 million (9M 2014/15: €5 million). The net financial result essentially comprises the net interest result at €-152 million (9M 2014/15: €-212 million) and the other financial result of €-103 million (9M 2014/15: €-66 million). The improvement in the interest result by €60 million results in particular from declining debt and lower interest rates. At €-31 million, the change in the other financial result of €-38 million is due to unhedged, largely non-cash currency effects. In Q3 2015/16, the other financial result stood at €-10 million (Q3 2014/15: €-49 million), which represented a significant stabilisation compared with the previous year's quarter.
Earnings before taxes stood at €930 million in the first nine months of 2015/16 (9M 2014/15: €212 million). Before special items, EBT amounted to €766 million (9M 2014/15: €807 million).
Reported tax expenses of €424 million (9M 2014/15: €139 million) correspond to a group tax rate of 45.6% (9M 2014/15: 65.4%). The tax rate before special items stands at 42.5% (9M 2014/15: 56.6%).
In 9M 2015/16, net profit for the period amounted to €158 million (9M 2014/15: €506 million). Net profit for the period before special items of €441 million is almost as much as in the previous year's quarter. In Q3 2015/16 net profit before special items rose from €7 million to €67 million.
In the first nine months of 2015/16, earnings per share amounted to €1.41 (9M 2014/15: €0.38). Adjusted for special items, earnings per share stood at €1.19 (9M 2014/15: €1.23). In Q3 2015/16, earnings per share came to €-0.07 (Q3 2014/15: €0.35). Adjusted for special items, earnings per share in Q3 rose markedly to €0.24 (Q3 2014/15: €0.07).
Net debt, after netting cash and cash equivalents as well as financial investments with financial liabilities (including finance leases), developed very favourably due partly to the sale of Galeria Kaufhof and METRO Cash & Carry Vietnam. As of 30 June 2016, net debt improved markedly from €5.1 billion to €3.1 billion compared with the previous year's period.
Between October 2015 and June 2016, cash inflow from operating activities amounted to €0.4 billion (9M 2014/15: €0.6 billion).
Cash flow from investing activities totalled €-0.5 billion (9M 2014/15: €-1.1 billion) and also includes investments in liquid investment funds with short-term investment periods.
Cash flow from financing activities showed outflows of €2.8 billion (9M 2014/15: €0.3 billion) that resulted largely from redemptions of financial debt.
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) | Like-for-like (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 | |
| Total | 22,338 | 21,648 | -2.5% | -3.1% | -2.6% | -3.2% | 0.0% | 0.1% | 0.9% | 0.3% |
| Horeca | 10,175 | 10,400 | 0.0% | 2.2% | 0.2% | -0.9% | -0.1% | 3.1% | 0.1% | 0.8% |
| Multispecialists | 9,487 | 9,051 | -1.6% | -4.6% | -5.3% | -5.5% | 3.7% | 0.9% | 1.7% | -0.7% |
| Traders | 2,143 | 2,064 | -7.6% | -3.7% | -7.2% | -5.4% | -0.4% | 1.7% | 1.9% | 2.3% |
| Others | 533 | 134 | - | - | - | - | - | - | - | - |
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) | Like-for-like (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q3 2014/15 | Q3 2015/16 | Q3 2014/15 | Q3 2015/16 | Q3 2014/15 | Q3 2015/16 | Q3 2014/15 | Q3 2015/16 | Q3 2014/15 | Q3 2015/16 | |
| Total | 7,449 | 7,113 | -1.3% | -4.5% | 0.0% | -4.7% | -1.3% | 0.2% | 0.1% | 0.1% |
| Horeca | 3,516 | 3,552 | 0.2% | 1.0% | -0.1% | -0.8% | 0.3% | 1.8% | 0.5% | -1.1% |
| Multispecialists | 3,078 | 2,858 | 0.6% | -7.2% | -0.2% | -9.1% | 0.8% | 1.9% | -1.4% | 1.0% |
| Traders | 735 | 699 | 0.4% | -4.9% | -2.5% | -6.3% | 2.2% | 1.4% | 4.1% | 2.9% |
| Others | 120 | 4 | - | - | - | - | - | - | - | - |
METRO Cash & Carry launched the New Operating Model in financial year 2015/16 to improve its business management. In the context of the introduction of the new management model, the individual METRO Cash & Carry countries were divided into the following segments:
This categorisation was guided by the respective national subsidiary's strategic focus on customer groups and expected market potential. At nearly 50%, the Horeca segment currently accounts for the largest share of METRO Cash & Carry sales. Under the New Operating Model, strategy and financial planning (Value Creation Plans) starts with the customer and the various market segments with the objective of identifying and exploiting the additional potential for METRO Cash & Carry in the individual countries. To achieve this objective, the company specifically aims to better understand the requirements of selected key customer groups to support the transformation from a transaction-based partner into a systemically important partner.
Starting in Q1 2015/16, sales and earnings of METRO Cash & Carry are reported based on this new structure. The new segments thus replace the previous reporting regions of Germany, Western Europe, Eastern Europe and Asia/Africa. The Horeca segment includes France, Germany, Italy, Japan, Portugal, Spain, Turkey and Classic Fine Foods. Multispecialists include Austria, Belgium, Bulgaria, China, Croatia, India, Kazakhstan, Netherlands, Pakistan, Russia, Serbia, Slovakia, Czech Republic and Hungary. The Trader segment includes Moldova, Poland, Romania and Ukraine.
METRO Cash & Carry continued to record a positively overall development. Like-for-like sales increased by 0.3% in the first nine months of 2015/16. Sales in local currency increased by 0.1%. Reported sales fell by 3.1% to €21.6 billion (9M 2014/15: €22.3 billion). However, it should be noted that exchange rate and portfolio effects had a negative impact on sales.
In Q3 2015/16, like-for-like sales rose by 0.1%, which means that like-for-like sales increased in twelve consecutive quarters. Measured in local currency, sales rose by 0.2%. In line with developments to date, reported sales declined by 4.5% due partly to currency effects.
Delivery sales continued their very positive trend, rising by 16.8% to €2.7 billion between October 2015 and June 2016. Delivery sales in local currency increased by nearly 20%. The acquisitions of Classic Fine Foods and Rungis Express also contributed to this positive development as they had not yet been included in the previous year's figure. Delivery sales now account for 12.3% of sales of METRO Cash & Carry, another new record. Sales from the delivery business continued their
upward trend in Q3 2015/16, rising by more than 15% to €0.9 billion. Delivery sales in local currency increased by over 20%.
Like-for-like sales in the Horeca segment rose by 0.8% during the first nine months of 2015/16. Like-for-like sales in local currency increased by 3.1%. Reported sales rose by 2.2%. In Q3 2015/16, however, like-for-like sales decreased slightly. In France, fears of more assaults and strikes had a negative impact, causing sales losses among METRO Cash & Carry's hospitality customers. Conversely, like-for-like sales continued their positive trend in Turkey and Spain.
Like-for-like sales in the Multispecialists segment declined by 0.7% during the first nine months of 2015/16. Measured in local currency, though, sales rose by 0.9%. Conversely, reported sales declined by 4.6% due to currency effects. Like-for-like sales improved by 1.0% in Q3 2015/16 – but negative currency effects increased markedly. This was particularly the case for Russia. Like-for-like sales in Russia developed positively and better than during H1 2015/16. Measured in rouble, total sales in Russia actually increased. China also recorded better figures for Q3 than for H1 2015/16, with like-for-like sales growing. Other countries such as India, Pakistan and Bulgaria also achieved very positive like-for-like sales growth in Q3 2015/16, while the negative trend continued in the Netherlands.
Like-for-like sales in the Trader segment rose by 2.3% between October 2015 and June 2016. Measured in local currency, sales rose by 1.7%. Conversely, reported sales declined by 3.7% due to currency effects. In Q3 2015/16, like-for-like sales increased across all countries with the exception of Poland. Sales in local currency rose more strongly than in H1 2015/16. However, reported sales declined due to currency effects.
| € million | 9M 2014/15 | 9M 2015/16 | Change | Q3 2014/15 | Q3 2015/16 | Change |
|---|---|---|---|---|---|---|
| EBIT | 759 | 966 | 27.3% | 255 | 101 | -60.2% |
| EBIT before special items | 781 | 737 | -5.6% | 262 | 241 | -8.2% |
| Investments | 285 | 399 | 39.9% | 119 | 227 | 90.7% |
During the first nine months of 2015/16, EBIT amounted to €966 million (9M 2014/15: €759 million). This figure includes the sale of METRO Cash & Carry Vietnam as a positive special item. Restructuring expenses and store closures had an opposite effect. EBIT before special items amounted to €737 million (9M 2014/15: €781 million). This decline is due to negative year-to-year currency effects of €65 million which particularly relate to Russia. However, as a result, and due to positive portfolio effects, METRO Cash & Carry's EBIT improved in local currency terms.
In Q3 2015/16, EBIT was €101 million (Q3 2014/15: €255 million). This decline is mainly due to special items of €140 million (Q3 2014/15: €8 million) especially regarding restructuring measures in Germany and Belgium. EBIT before special items totalled therefore €241 million (Q3 2014/15: €262 million). This figure includes negative currency effects totalling €25 million, which particularly relate to Russia. Adjusted for currency effects, METRO Cash & Carry's EBIT thus improved slightly.
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) | Like-for-like (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 | |
| Total | 16,655 | 16,837 | 3.8% | 1.1% | -0.9% | -1.2% | 4.7% | 2.3% | 3.2% | 0.7% |
| Germany | 7,652 | 8,007 | 2.1% | 4.6% | 0.0% | 0.0% | 2.1% | 4.6% | 1.4% | 2.5% |
| Western Europe (excl. Germany) |
6,758 | 6,824 | 5.5% | 1.0% | 0.7% | 0.1% | 4.8% | 0.9% | 3.3% | -0.4% |
| Eastern Europe | 2,245 | 2,006 | 4.9% | -10.6% | -9.6% | -8.7% | 14.5% | -1.9% | 10.1% | -2.3% |
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) | Like-for-like (local currency) |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q3 2014/15 | Q3 2015/16 | Q3 2014/15 | Q3 2015/16 | Q3 2014/15 | Q3 2015/16 | Q3 2014/15 | Q3 2015/16 | Q3 2014/15 | Q3 2015/16 | |
| Total | 4,620 | 4,689 | 1.2% | 1.5% | 0.0% | -1.7% | 1.2% | 3.2% | 0.2% | 1.2% |
| Germany | 2,064 | 2,218 | -2.2% | 7.4% | 0.0% | 0.0% | -2.2% | 7.4% | -2.1% | 3.8% |
| Western Europe (excl. Germany) |
1,943 | 1,898 | 5.5% | -2.3% | 1.3% | -0.5% | 4.2% | -1.8% | 2.3% | -2.8% |
| Eastern Europe | 613 | 573 | 0.3% | -6.5% | -3.8% | -11.7% | 4.1% | 5.1% | 2.1% | 5.0% |
Like-for-like sales of Media-Saturn rose by 0.7% in the first nine months of 2015/16 compared with the previous year's period. Measured in local currency, Media-Saturn's sales rose by 2.3%. Total sales increased by 1.1% to €16.8 billion. The sales development improved during Q3 2015/16 compared with H1 2015/16. Like-for-like sales increased by 1.2% and is therefore the eighth consecutive quarter with positive development. Sales in local currency rose by 3.2%. Reported sales also increased by 1.5% to €4.7 billion. Media-Saturn thus confirmed its strong market position in its individual countries.
Online generated sales increased by 10.0% to €1.5 billion during the first nine months of 2015/16. Online sales also grew during Q3, rising by 7.8% to €0.4 billion. While sales continued to decline at Redcoon due to the termination of select unprofitable wholesale business, the Media Markt and Saturn sales brands were able to boost sales by 34.5% during the first nine months of 2015/16. The strong growth trend continued in Q3, with sales of both sales brands improved clearly by 34.7%.
In Germany, like-for-like sales increased markedly by 2.5% during the first nine months of 2015/16. Reported sales rose by 4.6% to €8.0 billion. In Q3 2015/16, like-for-like sales increased by 3.8%. With a strong increase in reported sales of as much as 7.4%, the sales line reinforced its strong market position in Germany. The European Football Championship had a substantially positive effect, with television sales increasing significantly, particularly in June 2016. However, this product group generates disproportionately low margins.
In Western Europe, like-for-like sales declined slightly by 0.4% in the first nine months of 2015/16. Sales in local currency rose by 0.9%. Reported sales increased by 1.0%. Sales momentum declined in Q3 compared to H1 2015/16. During Q3 2015/16, like-for-like sales decreased by 2.8%. Sales in local currency declined by 1.8%. Reported sales fell by 2.3%. Belgium, Italy and Switzerland in particular recorded lower reported and likefor-like sales. Conversely, positive trends were seen in the Netherlands and Luxembourg.
In Eastern Europe, like-for-like sales declined by 2.3% in the first nine months of 2015/16. Sales in local currency declined by 1.9%. Reported sales fell by 10.6%. The trend improved markedly during Q3 2015/16 compared with H1 2015/16. Likefor-like sales in Eastern Europe increased substantially by 5.0%. Measured in local currency, sales rose by 5.1%. Due to negative currency effects, reported sales declined by 6.5%. Double-digit percentage increases in like-for-like sales were recorded in Turkey, Hungary and Russia.
| € million | 9M 2014/15 | 9M 2015/16 | Change | Q3 2014/15 | Q3 2015/16 | Change |
|---|---|---|---|---|---|---|
| EBIT | 258 | 238 | -7.6% | -74 | -94 | -27.4% |
| EBIT before special items | 309 | 275 | -11.0% | -60 | -77 | -27.6% |
| Investments | 135 | 229 | 69.5% | 54 | 87 | 60.5% |
During the first nine months of 2015/16, EBIT amounted to €238 million (9M 2014/15: €258 million). This figure includes special items totalling €37 million (9M 2014/15: €51 million). EBIT before special items declined to €275 million from €309 million.
In Q3 2015/16, EBIT before special items declined from €-60 million to €-77 million. This decline is largely due to an unfavourable product and margin mix, implementation costs for the new, successful Media Markt customer club as well as higher IT costs for the further multi-channel expansions.
| Sales (€ million) | Change (€) | Like-for-like (local currency) |
||||
|---|---|---|---|---|---|---|
| 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 | |
| Germany | 5,944 | 5,715 | -2.2% | -3.8% | -0.6% | -1.5% |
| Sales (€ million) | Change (€) | Like-for-like (local currency) |
||||
| Q3 2014/15 Q3 2015/16 |
Q3 2014/15 | Q3 2015/16 | Q3 2014/15 | Q3 2015/16 | ||
| Germany | 1,885 | 1,771 | -5.3% | -6.0% | -3.7% | -3.5% |
Real's like-for-like sales declined by 1.5% during the first nine months of 2015/16. Due mostly to store disposals, reported sales declined by 3.8% to €5.7 billion compared with the previous year's period. In Q3 2015/16, like-for-like sales fell by 3.5%. Due to 10 store closures, reported sales declined more strongly by 6.0% to €1.8 billion compared with the previous year's quarter. Deflationary price developments in important product categories also had a negative impact.
Online sales continued to develop very positively, rising markedly by more than 50% from €35 million to €53 million during the first nine months of 2015/16.
In June 2016, nearly one year after the collective bargaining agreement at Real had been terminated, the bargaining commissions at Real and the Verdi trade union agreed on the key parameters for a resolution in the wage negotiations. Essentially, the agreement on a future package with a three-and-ahalf-year term stipulates that Real will fundamentally accept the collective bargaining agreements for the retail sector and that negotiations regarding a new remuneration structure will begin in October 2016. In addition, both parties have agreed to significant short-term cutbacks in wage increases, vacation and Christmas allowances. Executive employees will also make a significant contribution to these cutbacks. In return, comprehensive provisions have been adopted to maintain store operations and safeguard jobs. This creates the prerequisites for planned investments of €1 billion in the modernisation of Real over the next five years.
| € million | 9M 2014/15 | 9M 2015/16 | Change | Q3 2014/15 | Q3 2015/16 | Change |
|---|---|---|---|---|---|---|
| EBIT | -439 | 73 | - | -7 | 6 | - |
| EBIT before special items | 53 | 73 | 38.5% | 5 | 6 | 31.2% |
| Investments | 149 | 201 | 35.3% | 72 | 44 | -38.4% |
EBIT totalled €73 million in the first nine months of 2015/16 (9M 2014/15: €-439 million). This figure does not include any substantial special items (9M 2014/15: €491 million). EBIT before special items amounted to €73 million, compared with €53 million in the previous year's period.
In Q3 2015/16, EBIT before special items came to €6 million (Q3 2014/15: €5 million). Lower sales were more than offset by positive effects from the closure of loss-making stores during the previous year, cost savings and better purchasing conditions as well as regulation by Markant.
| € million | 9M 2014/15 | 9M 2015/16 | Change | Q3 2014/15 | Q3 2015/16 | Change |
|---|---|---|---|---|---|---|
| Sales | 40 | 53 | 32.1% | 14 | 17 | 26.3% |
| EBIT | -93 | -105 | -13.2% | 0 | -52 | - |
| EBIT before special items | -68 | -92 | -34.4% | 1 | -19 | - |
| Investments | 88 | 82 | -6.8% | 24 | 28 | 14.4% |
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 (i.e. speciality stores, warehouses, head offices, etc.).
In the first nine months of 2015/16, sales in the Others segment totalled €53 million (9M 2014/15: €40 million). This includes, among other things, the four remaining Real stores in Romania and commissions from the third-party business operated by METRO GROUP's Hong Kong-based procurement organisation.
EBIT totalled €-105 million in the first nine months of 2015/16 (9M 2014/15: €-93 million). This figure includes special items of €13 million. EBIT before special items amounted to €-92 million (9M 2014/15: €-68 million) Compared to prior year there were less real estate gains and higher consulting costs recorded in this period of time.
The METRO GROUP forecast is based on the current group structure and refers to currency-adjusted figures. In addition, it is based on the assumption of a persistently complex geopolitical situation.
For financial year 2015/16, METRO GROUP continues to expect a slight increase in overall sales, despite the persistently challenging economic environment.
In like-for-like sales, METRO GROUP foresees a slight increase that will follow the 1.5% gain in the previous year. METRO Cash & Carry and Media-Saturn are expected to be the key drivers of total sales and like-for-like sales growth; METRO GROUP projects an improvement compared with the previous year for the Real sales line.
In financial year 2015/16, earnings development will also be shaped by the persistently challenging economic environment. Nevertheless, METRO GROUP remains confident that it can continue its earnings growth as a result of the progress it has made and will continue to make in transforming its business models. Aside from operational improvements, METRO GROUP will again closely focus on efficient structures and strict cost management in 2015/16 in this context.
For these reasons, METRO GROUP expects EBIT before special items to rise slightly above the €1,511 million achieved in financial year 2014/15, including income from real estate sales. METRO Cash & Carry and Media-Saturn are expected to be the key drivers of the increase. Developments at the Real sales line will depend on the successful implementation of the measures that have been initiated.
The METRO AG Management and Supervisory Boards will make a decision on the demerger of METRO GROUP into a wholesale and food specialist as well as a consumer electronics group after a period of intensive consultation and review. Assuming a positive outcome of ongoing assessments and a shareholder vote in favour of the demerger, the company plans to implement the demerger by mid-2017. This would result in the creation of two independent, stock-listed companies as market leaders in their respective sectors.
| 30/9/2015 | New store openings/ additions 9M 2015/16 |
Closures/ disposals 9M 2015/16 |
30/6/2016 | Change (absolute) |
|
|---|---|---|---|---|---|
| METRO Cash & Carry | 764 | +13 | -29 | 748 | -16 |
| Media-Saturn | 1,007 | +21 | -11 | 1,017 | +10 |
| Real | 293 | +0 | -2 | 291 | -2 |
| Total | 2,068* | +34 | -42 | 2,060* | -8 |
| METRO Cash & Carry | Media-Saturn | Real | METRO GROUP | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Openings/ additions 9M 2015/16 |
Closures/ disposals 9M 2015/16 |
30/6/2016 | Openings/ additions 9M 2015/16 |
Closures/ disposals 9M 2015/16 |
30/6/2016 | Openings/ Closures/ additions disposals 9M 2015/16 9M 2015/16 |
30/6/2016 | Openings/ additions 9M 2015/16 |
Closures/ disposals 9M 2015/16 |
30/6/2016 | |||
| Germany | 107 | +7 | -1 | 423 | -2 | 291 | +7 | -3 | 821 | ||||
| Austria | 12 | +1 | 49 | +1 | 61 | ||||||||
| Belgium | 15 | 23 | 38 | ||||||||||
| France | +1 | 94 | +1 | 94 | |||||||||
| Italy | +1 | 49 | +2 | -3 | 109 | +3 | -3 | 158 | |||||
| Luxembourg | 2 | 2 | |||||||||||
| Netherlands | 17 | 49 | 66 | ||||||||||
| Portugal | 10 | 9 | 19 | ||||||||||
| Spain | 37 | 77 | 114 | ||||||||||
| Sweden | 27 | 27 | |||||||||||
| Switzerland | 27 | 27 | |||||||||||
| Western Europe (excl. Germany) |
+2 | 234 | +3 | -3 | 372 | +5 | -3 | 606 | |||||
| Bulgaria | 11 | 11 | |||||||||||
| Croatia | +1 | -1 | 8 | +1 | -1 | 8 | |||||||
| Czech Republic | 13 | 13 | |||||||||||
| Greece | +1 | 11 | +1 | 11 | |||||||||
| Hungary | 13 | +1 | 22 | +1 | 35 | ||||||||
| Kazakhstan | 7 | 7 | |||||||||||
| Moldova | 3 | 3 | |||||||||||
| Poland | -8 | 33 | +4 | -1 | 82 | +4 | -9 | 115 | |||||
| Romania | -1 | 30 | -1 | 30 | |||||||||
| Russia | +4 | 88 | +1 | -4 | 64 | +5 | -4 | 152 | |||||
| Serbia | 10 | 10 | |||||||||||
| Slovakia | 6 | 6 | |||||||||||
| Turkey | +3 | 32 | +4 | -2 | 43 | +7 | -2 | 75 | |||||
| Ukraine | 32 | 32 | |||||||||||
| Eastern Europe | +8 | -10 | 286 | +11 | -7 | 222 | +19 | -17 | 508 | ||||
| China | 82 | 82 | |||||||||||
| India | +3 | 21 | +3 | 21 | |||||||||
| Japan | 9 | 9 | |||||||||||
| Pakistan | 9 | 9 | |||||||||||
| Vietnam | -19 | -19 | 0 | ||||||||||
| Asia | +3 | -19 | 121 | +3 | -19 | 121 | |||||||
| Total | +13 | -29 | 748 | +21 | -11 | 1,017 | -2 | 291 | +34 | -42 | 2,060* |
*Including 4 stores in the Others segment
9M 2015/16
by sales line
| As reported | Special items | Before special items | |||||
|---|---|---|---|---|---|---|---|
| € million | 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 | |
| EBITDA | 1,657 | 1,873 | 106 | -188 | 1,763 | 1,684 | |
| thereof METRO Cash & Carry | 1,080 | 1,291 | 5 | -231 | 1,084 | 1,059 | |
| Media-Saturn | 445 | 418 | 41 | 30 | 486 | 448 | |
| Real | 107 | 180 | 44 | 0 | 151 | 180 | |
| Others | 25 | -11 | 16 | 13 | 42 | 2 | |
| Consolidation | -1 | -5 | 0 | 0 | -1 | -5 | |
| EBIT | 487 | 1,170 | 590 | -179 | 1,076 | 992 | |
| thereof METRO Cash & Carry | 759 | 966 | 23 | -229 | 781 | 737 | |
| Media-Saturn | 258 | 238 | 51 | 37 | 309 | 275 | |
| Real | -439 | 73 | 491 | 0 | 53 | 73 | |
| Others | -93 | -105 | 24 | 13 | -68 | -92 | |
| Consolidation | 2 | -2 | 0 | 0 | 2 | -2 | |
| Net financial result | -275 | -240 | 5 | 15 | -269 | -226 | |
| EBT (earnings before taxes) | 212 | 930 | 595 | -163 | 807 | 766 | |
| Income taxes | -139 | -424 | -318 | 98 | -456 | -325 | |
| Profit or loss for the period from continuing operations | 73 | 506 | 277 | -65 | 351 | 441 | |
| Profit or loss for the period from discontinued operations after tax | 85 | 0 | 10 | 0 | 94 | 0 | |
| Profit or loss for the period | 158 | 506 | 287 | -65 | 445 | 441 | |
| Profit or loss for the period attributable to non-controlling interests | 33 | 46 | 11 | 6 | 45 | 52 | |
| from continuing operations | 33 | 46 | 11 | 6 | 45 | 52 | |
| from discontinued operations | 0 | 0 | 0 | 0 | 0 | 0 | |
| Profit or loss for the period attributable to shareholders of METRO AG | 125 | 460 | 276 | -72 | 400 | 389 | |
| from continuing operations | 40 | 460 | 266 | -72 | 306 | 389 | |
| from discontinued operations | 85 | 0 | 10 | 0 | 94 | 0 | |
| Earnings per share in € (basic = diluted) | 0.38 | 1.41 | 0.85 | -0.22 | 1.23 | 1.19 | |
| from continuing operations | 0.12 | 1.41 | 0.82 | -0.22 | 0.94 | 1.19 | |
| from discontinued operations | 0.26 | 0.00 | 0.03 | 0.00 | 0.29 | 0.00 | |
Q3 2015/16
by sales line
| As reported Special items |
Before special items | ||||||
|---|---|---|---|---|---|---|---|
| € million | Q3 2014/15 | Q3 2015/16 | Q3 2014/15 | Q3 2015/16 | Q3 2014/15 | Q3 2015/16 | |
| EBITDA | thereof METRO Cash & Carry | 409 362 |
207 217 |
26 -1 |
184 135 |
435 361 |
391 352 |
| Media-Saturn | -15 | -35 | 13 | 16 | -1 | -19 | |
| Real | 27 | 42 | 12 | 0 | 38 | 42 | |
| Others | 36 | -18 | 2 | 33 | 37 | 15 | |
| Consolidation | 0 | 1 | 0 | 0 | 0 | 1 | |
| EBIT | 175 | -36 | 35 | 190 | 209 | 154 | |
| thereof METRO Cash & Carry | 255 | 101 | 8 | 140 | 262 | 241 | |
| Media-Saturn | -74 | -94 | 14 | 17 | -60 | -77 | |
| Real | -7 | 6 | 12 | 0 | 5 | 6 | |
| Others | 0 | -52 | 2 | 33 | 1 | -19 | |
| Consolidation | 1 | 2 | 0 | 0 | 1 | 2 | |
| Net financial result | -110 | -43 | 15 | 3 | -94 | -40 | |
| EBT (earnings before taxes) | 65 | -79 | 50 | 193 | 115 | 114 | |
| Income taxes | 25 | 41 | -138 | -88 | -113 | -47 | |
| Profit or loss for the period from continuing operations | 90 | -38 | -88 | 105 | 2 | 67 | |
| Profit or loss for the period from discontinued operations after tax | 7 | 0 | -1 | 0 | 5 | 0 | |
| Profit or loss for the period | 97 | -38 | -89 | 105 | 7 | 67 | |
| Profit or loss for the period attributable to non-controlling interests | -18 | -14 | 3 | 2 | -15 | -12 | |
| from continuing operations | -18 | -14 | 3 | 2 | -15 | -12 | |
| from discontinued operations | 0 | 0 | 0 | 0 | 0 | 0 | |
| Profit or loss for the period attributable to shareholders of METRO AG | 115 | -24 | -93 | 102 | 22 | 79 | |
| from continuing operations | 108 | -24 | -92 | 102 | 17 | 79 | |
| from discontinued operations | 7 | 0 | -1 | 0 | 5 | 0 | |
| Earnings per share in € (basic = diluted) | 0.35 | -0.07 | -0.28 | 0.31 | 0.07 | 0.24 | |
| from continuing operations | 0.33 | -0.07 | -0.28 | 0.31 | 0.05 | 0.24 | |
| from discontinued operations | 0.02 | 0.00 | 0.00 | 0.00 | 0.02 | 0.00 |
| € million | 9M 2014/15 | 9M 2015/16 | Q3 2014/15 | Q3 2015/16 |
|---|---|---|---|---|
| Sales | 44,977 | 44,253 | 13,967 | 13,589 |
| Cost of sales | -36,224 | -35,656 | -11,244 | -10,988 |
| Gross profit on sales | 8,753 | 8,597 | 2,723 | 2,601 |
| Other operating income | 848 | 1,208 | 278 | 251 |
| Selling expenses | -7,599 | -7,507 | -2,474 | -2,501 |
| General administrative expenses | -1,027 | -1,103 | -337 | -388 |
| Other operating expenses | -488 | -33 | -15 | -4 |
| Earnings share of operating companies recognised at equity | 0 | 8 | 0 | 5 |
| Earnings before interest and taxes EBIT | 487 | 1,170 | 175 | -36 |
| Earnings share of non-operating companies recognised at equity | 3 | 3 | 3 | 0 |
| Other investment result | 0 | 12 | 0 | 0 |
| Interest income | 45 | 75 | 11 | 42 |
| Interest expenses | -257 | -227 | -75 | -75 |
| Other financial result | -66 | -103 | -49 | -10 |
| Net financial result | -275 | -240 | -110 | -43 |
| EBT (earnings before taxes) | 212 | 930 | 65 | -79 |
| Income taxes | -139 | -424 | 25 | 41 |
| Profit or loss for the period from continuing operations | 73 | 506 | 90 | -38 |
| Profit or loss for the period from discontinued operations | 85 | 0 | 7 | 0 |
| Profit or loss for the period | 158 | 506 | 97 | -38 |
| Profit or loss for the period attributable to non-controlling interests | 33 | 46 | -18 | -14 |
| from continuing operations | 33 | 46 | -18 | -14 |
| from discontinued operations | 0 | 0 | 0 | 0 |
| Profit or loss for the period attributable to shareholders of METRO AG | 125 | 460 | 115 | -24 |
| from continuing operations | 40 | 460 | 108 | -24 |
| from discontinued operations | 85 | 0 | 7 | 0 |
| Earnings per share in € (basic = diluted) | 0.38 | 1.41 | 0.35 | -0.07 |
| from continuing operations | 0.12 | 1.41 | 0.33 | -0.07 |
| from discontinued operations | 0.26 | 0.00 | 0.02 | 0.00 |
| € million | 30/9/2015 | 30/6/2015 | 30/6/2016 |
|---|---|---|---|
| Non-current assets | 13,207 | 12,760 | 13,193 |
| Goodwill | 3,301 | 3,121 | 3,372 |
| Other intangible assets | 464 | 335 | 510 |
| Property, plant and equipment | 7,955 | 8,039 | 7,930 |
| Investment properties | 170 | 165 | 131 |
| Financial assets | 117 | 72 | 70 |
| Investments accounted for using the equity method | 184 | 94 | 195 |
| Other financial and non-financial assets | 292 | 280 | 279 |
| Deferred tax assets | 724 | 654 | 706 |
| Current assets | 14,449 | 14,729 | 12,024 |
| Inventories | 5,439 | 5,897 | 6,016 |
| Trade receivables | 702 | 592 | 765 |
| Financial assets | 6 | 6 | 3 |
| Other financial and non-financial assets | 3,435 | 3,256 | 3,417 |
| Entitlements to income tax refunds | 202 | 452 | 202 |
| Cash and cash equivalents | 4,415 | 1,691 | 1,594 |
| Assets held for sale | 250 | 2,835 | 27 |
| 27,656 | 27,489 | 25,217 |
| € million | 30/9/2015 | 30/6/2015 | 30/6/2016 |
|---|---|---|---|
| Equity | 5,172 | 4,694 | 5,203 |
| Share capital | 835 | 835 | 835 |
| Capital reserve | 2,551 | 2,551 | 2,551 |
| Reserves retained from earnings | 1,793 | 1,321 | 1,820 |
| Non-controlling interests | -7 | -13 | -3 |
| Non-current liabilities | 6,841 | 6,520 | 6,126 |
| Provisions for pensions and similar obligations | 1,270 | 1,273 | 1,458 |
| Other provisions | 492 | 343 | 386 |
| Borrowings | 4,731 | 4,680 | 3,945 |
| Other financial and non-financial liabilities | 206 | 147 | 195 |
| Deferred tax liabilities | 142 | 77 | 142 |
| Current liabilities | 15,643 | 16,275 | 13,888 |
| Trade liabilities | 9,550 | 9,398 | 9,243 |
| Provisions | 628 | 522 | 675 |
| Borrowings | 2,635 | 2,563 | 1,511 |
| Other financial and non-financial liabilities | 2,488 | 2,252 | 2,281 |
| Income tax liabilities | 148 | 81 | 178 |
| Liabilities related to assets held for sale | 194 | 1,459 | 0 |
| 27,656 | 27,489 | 25,217 |
| € million | 9M 2014/15 | 9M 2015/16 |
|---|---|---|
| EBIT | 487 | 1,170 |
| Depreciation/amortisation/impairment losses/reversal of impairment losses of assets excl. financial investments | 1,170 | 702 |
| Change in provisions for post-employment benefit plans and similar obligations | -65 | 8 |
| Change in net working capital | -682 | -849 |
| Income taxes paid | -438 | -280 |
| Reclassification of gains (-) / losses (+) from the disposal of fixed assets | -51 | -27 |
| Other | 53 | -293 |
| Cash flow from operating activities of continuing operations | 474 | 431 |
| Cash flow from operating activities of discontinued operations | 168 | 0 |
| Cash flow from operating activities | 642 | 431 |
| Corporate acquisitions | -10 | -107 |
| Investments in property, plant and equipment (excl. finance leases) | -675 | -626 |
| Other investments | -495 | -491 |
| Divestments | 65 | 357 |
| Disposal of fixed assets | 46 | 129 |
| Gains (+) / losses (-) from the disposal of fixed assets | 51 | 27 |
| Cash flow from investing activities of continuing operations | -1,018 | -711 |
| Cash flow from investing activities of discontinued operations | -58 | 220 |
| Cash flow from investing activities | -1,076 | -491 |
| Profit distribution | ||
| to METRO AG shareholders1 | -316 | -349 |
| to other shareholders2 | -44 | -37 |
| Redemption of liabilities from put options of non-controlling interests | 0 | -89 |
| Proceeds from long-term financial liabilities | 2,682 | 540 |
| Redemption of financial liabilities | -2,287 | -2,666 |
| Interest paid | -273 | -232 |
| Interest received | 43 | 91 |
| Profit and loss transfers and other financing activities | 32 | -13 |
| Cash flow from financing activities of continuing operations | -163 | -2,755 |
| Cash flow from financing activities of discontinued operations | -111 | 0 |
| Cash flow from financing activities | -274 | -2,755 |
| Total cash flows | -708 | -2,815 |
| Currency effects on cash and cash equivalents | 11 | -8 |
| Total change in cash and cash equivalents | -697 | -2,823 |
| Cash and cash equivalents as of 1 October | 2,408 | 4,417 |
| Cash and cash equivalents shown under IFRS 5 assets | 22 | 2 |
| Cash and cash equivalents on 1 October | 2,386 | 4,415 |
| Cash and cash equivalents as of 30 June | 1,711 | 1,594 |
| Cash and cash equivalents shown under IFRS 5 assets | 20 | 0 |
| Cash and cash equivalents as of 30 June | 1,691 | 1,594 |
1Reported dividends include dividends to minority shareholders in the amount of €-22 million (previous year: €-21 million) whose shareholdings are shown under debt capital due to put options
2Reported dividends include dividends to minority shareholders in the amount of €-5 million (previous year: €-6 million) whose shareholdings are shown under debt capital due to put options
| Operating segments | Continuing operations of the Group | |||||||
|---|---|---|---|---|---|---|---|---|
| METRO Cash & Carry | Media-Saturn | Real | Others | |||||
| € million | 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 |
| Sales | 22,338 | 21,648 | 16,655 | 16,837 | 5,944 | 5,715 | 40 | 53 |
| EBITDA | 1,080 | 1,291 | 445 | 418 | 107 | 180 | 25 | -11 |
| EBITDA before special items | 1,084 | 1,059 | 486 | 448 | 151 | 180 | 42 | 2 |
| EBIT | 759 | 966 | 258 | 238 | -439 | 73 | -93 | -105 |
| EBIT before special items | 781 | 737 | 309 | 275 | 53 | 73 | -68 | -92 |
| Investments | 285 | 399 | 135 | 229 | 149 | 201 | 88 | 82 |
| Operating segments continued | Continuing operations of the Group | Discontinued operations of the Group |
|||||
|---|---|---|---|---|---|---|---|
| Consolidation | METRO GROUP | ||||||
| € million | 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 | 9M 2014/15 | 9M 2015/16 | |
| Sales | 0 | 0 | 44,977 | 44,253 | 2,334 | 0 | |
| EBITDA | -1 | -5 | 1,657 | 1,873 | 204 | 0 | |
| EBITDA before special items | -1 | -5 | 1,763 | 1,684 | n/a | n/a | |
| EBIT | 2 | -2 | 487 | 1,170 | 116 | 0 | |
| EBIT before special items | 2 | -2 | 1,076 | 992 | n/a | n/a | |
| Investments | 0 | 0 | 656 | 911 | 98 | 0 |
| Operating segments | Continuing operations of the Group | |||||||
|---|---|---|---|---|---|---|---|---|
| METRO Cash & Carry | Media-Saturn | Real | Others | |||||
| € million | Q3 2014/15 | Q3 2015/16 | Q3 2014/15 | Q3 2015/16 | Q3 2014/15 | Q3 2015/16 | Q3 2014/15 | Q3 2015/16 |
| Sales | 7,449 | 7,113 | 4,620 | 4,689 | 1,885 | 1,771 | 14 | 17 |
| EBITDA | 362 | 217 | -15 | -35 | 27 | 42 | 36 | -18 |
| EBITDA before special items | 361 | 352 | -1 | -19 | 38 | 42 | 37 | 15 |
| EBIT | 255 | 101 | -74 | -94 | -7 | 6 | 0 | -52 |
| EBIT before special items | 262 | 241 | -60 | -77 | 5 | 6 | 1 | -19 |
| Investments | 119 | 227 | 54 | 87 | 72 | 44 | 24 | 28 |
Operating segments continued Continuing operations of the Group the Group Consolidation METRO GROUP € million Q3 2014/15 Q3 2015/16 Q3 2014/15 Q3 2015/16 Q3 2014/15 Q3 2015/16 Sales 0 0 13,967 13,589 667 0 EBITDA 0 1 409 207 39 0 EBITDA before special items 0 1 435 391 n/a n/a EBIT 1 2 175 -36 9 0 EBIT before special items 1 2 209 154 n/a n/a Investments 0 0 269 385 64 0
| 03 2015/16 | Q3 2014/15 | 15/16 |
|---|---|---|
| С | 667 | 1,589 |
| C | 39 | 207 |
| n/a | n/a | 391 |
| C | 9 | $-36$ |
| n/a | n/a | 154 |
Discontinued operations of
| Trading Statement Financial Year 2015/16 | Wednesday | 19 October 2016 | 7.30 a.m. |
|---|---|---|---|
| All time specifications are CET | |||
METRO AG Metro-Strasse 1 40235 Düsseldorf, Germany
PO Box 230361 40089 Düsseldorf, Germany
www.metrogroup.de
Published: 2 August 2016
| Investor Relations | |
|---|---|
| Telephone | +49 (211) 6886-1051 |
| Fax | +49 (211) 6886-3759 |
| [email protected] | |
| Creditor Relations | |
| Telephone | +49 (211) 6886-1904 |
| Fax | +49 (211) 6886-1916 |
| [email protected] | |
| Corporate Communications | |
| Telephone | +49 (211) 6886-4252 |
| Fax | +49 (211) 6886-2001 |
| [email protected] | |
Visit our website at www.metrogroup.de, the primary source for publications and information about METRO GROUP.
This quarterly statement contains forward-looking statements which are based on certain expectations and assumptions at the time of publication of this report and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in these materials. Many of these risks and uncertainties relate to factors that are beyond METRO GROUP's ability to control or estimate precisely, such as future market and economic conditions, the behaviour of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated cost savings and productivity gains as well as the actions of government regulators. METRO GROUP does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.
Please note: In case of doubt the German version shall prevail.
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