• Group like-for-like ( LFL) sales rose by 1.7% in Q3 2013/14 to EUR 14.68bn. LFL ( in local currency) at METRO Cash & Carry rose 2%, Real were up 5.1% and Galeria Kaufhof increased 2.2%; Media-Saturn continued to show a decline in all regions bar Eastern Europe and LFL sales were down -0.2%.
  • Sales generated by Metro’s delivery business increased by 10.1% to EUR 2 billion 9M Q2/3 2014
  • Q3 EBIT was same as last year at EUR276 million.
  • The Supervisory Board of METRO AG extended Olaf Koch’s Metro CEO’s contract for another year.

 

Overall in local currency Metro Cash & Carry has shown like-for-like (LFL) growth in all regions bar Western Europe (excl. Germany) where sales in the Netherlands have been particularly affected with an EUR 148 million writedown affected the overall profitability of the division. In Eastern Europe sales in the Ukraine have been affected due to the political unrest in the area. In Russia, like-for-like sales continued to grow despite the regional political situation. New store layouts and a multichannel structure appear to be working in Poland, where LFL sales grew significantly.

METRO Cash & Carry

Q3 2012/13
(€ million)

Q3 2013/14
(€ million)

Change (in €)

Change (in local currency)

Like-for-like (in local currency)

Sales

7,716

7,549

-2.2%

2.8%

2.0%

Germany

1,173

1,210

3.1%

3.1%

3.1%

Western Europe
(excl. Germany)

2,733

2,724

-0.3%

-0.3%

-0.6%

Eastern Europe

2,970

2,780

-6.4%

4.5%

3.4%

Asia/Africa

840

836

-0.5%

7.1%

4.5%

 

Sales at Real Germany increased by 5.5% LFL as the 30 new refitted stores outperform their predecessors and are more in line with German consumer trends. Real in Turkey was sold to Begendik which completed their Eastern Europe disposals which led to a dramatic fall in LFL’s.

 

Real

Q3 2012/13
(€ million)

Q3 2013/14
(in Mio. €)

Change
(in €)

Change (in local currency)

Like-for-like (in local currency)

Sales

2,360

2,053

-13.0%

-12.6%

5.1%

Germany

1,901

1,990

4.7%

4.7%

5.1%

Eastern Europe

459

63

-86.3%

-86.0%

3.6%

EBIT before special items

6

-3

€-9 million

 

 

 

 It is clear that Olaf Koch is making significantly more progress than last year in terms of increasing LFL’s and divesting the unprofitable parts of the business. However, Media-Saturn continues to be a problem for the group and its place in the Metro portfolio remains questionable.