Metro wholesale driving growth in Q3

Date : 06 August 2018

Metro has announced its Q3, 9M 2017/18 results, with most businesses performing positively, except for its Real hypermarkets and Russian operations. Its delivery and online businesses had the strongest growth. Total sales for 9M were down -1.4% to €22,556m, and down -3.7% in Q3 to €8,996m.

Like-for-like (lfl) sales up slightly in 9M

Overall lfl sales increased by 0.7% in 9M until June 2018, despite Real hypermarkets declining. Q3 lfl sales were down by -0.5% in Q3, driven primarily by negative currency effects. Its wholesale operations account for 80% of Metro’s business activities by sales and increased 1.2% on a lfl basis in 9M and 1% in Q3.

Wholesale performance by country varied

Lfl sales growth was driven by Germany, Eastern Europe (excluding Russia) and some of its Asian operations. Negative exchange rate developments in Russia and Turkey impacted sales.

Source: Metro

Growth in delivery and online

Metro wholesale’s delivery sales rose 17% to €3.9bn in 9M. Delivery sales account for 18% of total sales. Q3 performance was similar, with delivery sales up in the period by 10%.

Lfl sales at Real were down -1.0% in 9M, with lfl sales down -6.6% in Q3. Reasons for this include missing Easter business and limited availability of goods. Online sales however did improve, increasing by 34%, accounting for 2% of sales in 9M. Q3 online sales increased by a similar 30%, also accounting for 2% of sales.

A minimum of 0.5% sales growth predicted for 2017/2018

Metro slightly decreased its minimum expected growth rate for the full year, from 1.1%, to 0.5%. This is due to a decline in sales from Russia, and a decrease in the expected earnings contribution from the country.

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