Metro Group like-for-like sales up 1.5 percent in FY15

According to the preliminary figures, Metro Group increased its like-for-like sales by 1.5 percent in financial year 2014/15. The Düsseldorf-based retail and wholesale company said that the growth indicates that it has achieved its full-year sales target. The company added that reported sales of 59.2 billion euros (67 billion dollars) fell 1.2 percent short of the previous year's figure due to negative currency and portfolio effects. However, sales in local currencies increased by 0.5 percent.

“Financial year 2014/15 was a turning point for Metro Group,” said Olaf Koch, Chairman of the management board of Metro, adding, “We managed to make our core business dynamic again and strengthen our balance sheet even further. We reached our full-year like-for-like sales target. We also confirm our guidance for EBIT before special items. Following the successful sale of Galeria Kaufhof, we also once again have the financial means to make further acquisitions to supplement and strengthen our sales lines. These include the recently acquired companies Classic Fine Foods and RTS.”

Like-for-like sales up in Q4

The group’s like-for-like sales rose by 1.3 percent in the fourth quarter of 2014/15. Both Metro Cash & Carry and Media-Saturn recorded increases in like-for-like sales in Q4 and over financial year 2014/15 as a whole. Reported sales fell by 1.1 percent due to currency and portfolio effects but sales in local currencies increased by 1.9 percent.

The company expanded its business in the strategic growth areas of online retail and delivery in Q4. It expects a positive Christmas business and has begun the current quarter with an optimistic outlook.

Like-for-like sales at Metro Cash & Carry increased by 1.1 percent in the fourth quarter and therefore generated growth for the ninth consecutive quarter. Reported sales fell by 3.2 percent, however, sales in local currencies matched the levels of the same quarter in the previous year.

The like-for-like decline in the German business was less pronounced than in the two previous quarters. In the Western Europe region, like-for-like sales rose slightly. Development was particularly positive in France, Italy and Spain. In Eastern Europe, like-for-like sales rose in almost every country. In percentage terms, Russian business once again reported positive like-for-like sales growth in the mid-single-digit range. Sales in the Asia/Africa region were up on account of support provided by exchange rates, though like-for-like sales declined. This was due to development in China and Pakistan. In China, METRO Cash & Carry deliberately avoided low-margin business with large sales volumes. Like-for-like sales growth was achieved in Japan and India.

Fourth quarter developments at Media-Saturn

The positive trend at Media-Saturn continued in Q4 2014/15, with like-for-like sales rose by 2.9 percent for the fifth consecutive quarter. Reported sales climbed by 3 percent or 4.6 percent in local currency. All regions generated like-for-like sales growth. Aside from the volume market Germany, sales development in Western Europe in Spain, Italy, the Netherlands and Sweden was very positive. Hungary and Turkey were particular highlights in Eastern Europe, with double-digit percentage growth both in total sales and like-for-like.

Like-for-like sales at Real fell slightly by 0.8 percent in financial year 2014/15 and reported sales fell by 2.6 percent due to store closures. In Q4, like-for-like sales declined by 1.6 percent and showed a better development compared to Q3 2014/15.