METRO grows by 7.9% in Q4 2022/23

• Sales development in Q4 2022/23 remained positive due to consistent implementation of the sCore strategy
  • Sales adjusted for currency and portfolio effects grow by 7.9%, in local currency by 5.4%; reported sales decline by 1.1% to €7.9 billion due to negative currency and portfolio effects (PY: €8.0 billion)
  • Continued strong growth in the online marketplace and delivery business
  • Increasing sales¹ in all segments
• FY 2022/23 sales growth of 8.8%²  in upper half of guidance range (5% to 10%)
• Adjusted EBITDA expected in the lower half of the guidance range³

In Q4 2022/23⁴, METRO AG’s sales adjusted for currency and portfolio effects grew by 7.9%; sales in local currency increased by 5.4%. The consistent implementation of the sCore strategy led to continued positive sales development in all segments, in particular East and West. Delivery business and the online marketplace METRO MARKETS also achieved positive growth compared with the previous year. For the full FY 2022/23, this results in 8.8%² sales growth in the guidance view. EBITDA is expected to be in the lower half of the guidance range. Besides rising costs for cybersecurity this also includes insurance compensation in an amount in the mid double-digit million euros range which could not fully compensate for loss in EBITDA through the cyberattack in Q1 2022/23 in the mid to high double-digit million euros range.

“In spite of a strong previous-year quarter and conditions which remained challenging, METRO was able to continue its growth trajectory in the 4th quarter of 2022/23. At the same time, we are concluding the financial year with a sales growth of 8.8%”, said Dr Steffen Greubel, CEO of METRO AG. “This demonstrates that the consistent focus on the implementation of the sCore strategy is paying off and we are making clear progress towards strengthening delivery, online business and the optimisation of the wholesale approach for our stores. At the same time, we are laying the proper groundwork for the future with sCore and our multichannel strategy. The outlook for the next financial year remains challenging. Taking into account our continued growth in the previous financial year, we are well positioned of achieving our 2030 ambition.”

Sales growth in all segments in Q4 2022/23

In Q4 2022/23, METRO further increased sales in local currency by 5.4% against a very strong comparison basis and despite the missing sales after the sale of the Indian business. All segments contributed to this development, in particular the segments East with growth of 10.3% and West with growth of 3.8%. Sales in Germany increased slightly by 0.8%. For the first time in the expired financial year 2022/23, Russia achieved positive growth of 1.3%. The delivery specialists Pro à Pro France, Pro a Pro Spain and Aviludo, as well as the sales of the Sweden-based delivery specialist JHB, also contributed to this sales growth. Due to negative exchange rate developments in Türkiye and Russia, reported sales declined by 1.1% to €7.9 billion.

Consistent implementation of the sCore growth strategy drove sales growth in the financial year

In financial year 2022/23, sales in local currency grew by 5.6% (8.8%² guidance view) despite the sales loss during the cyberattack in Q1 2022/23 (amount in the low 3-digit million euros range). The sales development² is in the upper half of the guidance range of 5% to 10%. All segments other than Russia, as well as all sales channels (store-based business, delivery, METRO MARKETS), contributed to the growth.

As expected, sales adjusted for currency and portfolio effects (guidance view) in the segment East grew outside of the guidance range of 5% to 10%, partially due to higher inflation. Sales in the segment West saw positive development within the guidance range, while Germany came in slightly below the guidance range. Russia underwent negative development as expected. Sales in the segment Others increased to more than €200 million, driven by the expansion of the online marketplace METRO MARKETS.

Reported sales grew by 2.7% to €30.6 billion. Negative exchange rate effects in Russia and Türkiye made an impact in this regard.

As of 30 September 2023, the store network comprised 625⁵ locations, of which 529 were out-of-store (OOS), and 76 depots. METRO MARKETS, the online marketplace, was rolled-out in three additional countries and is now active in six countries (Germany, Spain, Italy, Portugal, the Netherlands, France).

¹ Adjusted for exchange rates.
² Adjusted for exchange rates, excluding Japan, Myanmar, Belgium, India and JHB.
³ Decline of adjusted EBITDA by €75–€225 million adjusted for exchange rates compared to the previous year.
⁴ According to preliminary and unaudited figures.
⁵ Two stores in Ukraine were excluded from the location analysis as they are temporarily not operational due to the war (Mariupol and Kharkiv).

Disclaimer

This trading statement contains preliminary, unaudited figures and forward-looking statements. These statements are based on certain assumptions and expectations held at the time this report is published. Preliminary figures and forward-looking statements are therefore subject to risks and uncertainties and may significantly deviate from the actual results. With regard to forward-looking statements in particular, risks and uncertainties are to a large extent determined by factors that are outside of METRO’s sphere of influence and that can currently not be estimated with an adequate degree of certainty. These factors include, inter alia, future market conditions and economic developments, the actions of other market participants, the utilisation of anticipated synergy effects as well as legislative and political decisions. METRO does not consider itself obliged to publish any corrections to these forward-looking statements for the purpose of adjusting them to events or circumstances that eventuate after the publishing date of these materials.