Metro Cash & Carry International GmbH : METRO GROUP had a solid start into Financial Year 2013/14

January 13, 2014 at 07:55 pm IST

MarketScreener.com By

13/01/2014

1.1% sales growth (adjusted for currency effects and portfolio changes), like-for-like sales almost on prior year's level
Further like-for-like sales trend improvements at METRO Cash & Carry against FY 2012/13 (pro-forma)
Both Egyptian MAKRO Cash & Carry stores were closed down

Preliminary METRO GROUP sales in Q1 2013/14, adjusted for currency effects and portfolio changes, grew by 1.1%. Reported sales declined by 3.3% to €18.7 billion mainly due to negative currency effects in many parts of Eastern Europe and Asia, as well as the missing sales of Real Russia, Romania, Ukraine and Media Markt China. "All in all, our new financial year got off to a solid start in spite of the still challenging economic backdrop; soft Christmas sales prevented a better development. Our like-for-like sales development as well as our sales growth (adjusted for currency effects and portfolio changes) are nevertheless in line with our guidance", said Olaf Koch,CEO of METRO AG."Also in the first quarter 2013/14, the implemented transformation process has led to a METRO GROUPsales trend improvement. We shall continue our transformation in order to create further value for both our customers and shareholders", said Koch.

METRO GROUP'stransformation process continued into the FY 2013/14 with its online and delivery sales shares growing further. METRO GROUPhas thus not only become more customer-relevant, but has also strengthened its market position in numerous cases. In Q1 2013/14, METRO GROUPopened a total of 36 new stores across 9 countries, of which 10 METRO Cash & Carry, 25 Media-Saturnand 1 Real hypermarket. 20 new store openings took place in the important expansion countries Russia, China, India and Turkey. Both Egyptian MAKRO Cash & Carrystores were closed down as METRO AG'sManagement Board sees currently no sustainable wholesale expansion opportunities here due to current affairs and the limited market position.

METRO GROUP	Q1 2012/13 (Q4 2012)	Q1 2013/14
Sales (in € bn.)	19.4	18.7
Change (€)	0.5%	-3.3%
Change (in local currency)	-0.6%	-1.5%
Like-for-like change (in local currency)	-1.4%	-0.2%

Q1 2013/14 sales development of the METRO GROUP sales lines

METRO Cash & Carry

METRO Cash & Carrygrew by satisfying 0.9% in like-for-like sales terms. The regions Eastern Europe and Asia reported like-for-like sales growth. In Eastern Europe especially Russia, Poland and Turkey showed a good development. In Germany and Western Europe, like-for-like sales declined: however, the sales trend improved against FY 2012/13 (pro-forma). In Germany, the numerous remodellings, product range improvements and new product launches already had positive effects. Spain and Italy even reported slight sales growth. Food sales at METRO Cash & Carrywere distinctly positive and delivery sales growth was double-digit. Negative currency effects were reported in Russia, Turkey, India and Japan in particular.

METRO Cash & Carry	Q1 2012/13 (Q4 2012)	Q1 2013/14
Sales (in € bn.)	8.6	8.5
Change (€)	0.4%	-1.2%
Change (in local currency)	-1.1%	2.1%
Like-for-like change (in local currency)	-0.4%	0.9%

Media-Saturn

The like-for-like sales trend at Media-Saturnimproved against FY 2012/13 (pro-forma). In Germany, reported sales met the excellent prior year's level; like-for-like sales were slightly down also due to the high prior year base. The sales development in Western Europe was slightly positive - the development in Spain and the Netherlands was pleasing; like-for-like sales were flat. Eastern European sales grew in local currency; both Hungary and Turkey reported considerable double-digit sales growth. In like-for-like terms, sales in Eastern Europe declined. Online sales at Media-Saturnsignificantly increased by more than 40% - here both very good multichannel sales and a satisfactory development at Redcoon contributed.

Media-Saturn	Q1 2012/13 (Q4 2012)	Q1 2013/14
Sales (in € bn.)	6.6	6.6
Change (€)	1.3%	-0.7%
Change (in local currency)	0.6%	0.3%
Like-for-like change (in local currency)	-3.1%	-1.2%

Real

German like-for-like sales declined by 2.0% on account of the relatively high prior year base and the very competitive market conditions, especially from discounters. Furthermore, reductions in food prices took place.

Real	Q1 2012/13 (Q4 2012)	Q1 2013/14
Sales (in € bn.)	3.1	2.6
Change (€)	0.6%	-16.0%
Change (in local currency)	-0.3%	-15.6%
Like-for-like change (in local currency)	-0.3%	-1.9%