METRO continues to grow in all channels in Q3 2023/24
14 August 2024METRO continued its positive sales trend in the third quarter of 2023/24. Adjusted for currency and portfolio effects, sales increased by 4.4%, in local currency by 3.4%. All sales channels contributed to sales growth, with the delivery business (Food Service Distribution, FSD) and the online marketplace once again posting the strongest growth. Adjusted EBITDA reached €327 million, approximately at the previous year's level (Q3 2022/23: €332 million).
"Our multichannel business model is showing its impact: METRO was able to maintain its growth momentum in the third quarter of 2023/24 despite declining inflation and a partly late start to the summer season due to weather conditions. The delivery business in particular once again recorded significant double-digit growth in the past quarter, reaching an all-time high with a 26 per cent share of sales. In addition to the METRO delivery service, the FSD specialists in our portfolio such as Aviludo, Pro-à-Pro and the Swedish delivery expert Johan i Hallen & Bergfalk (JHB) contribute to this. We were also able to further strengthen JHB's market position in Scandinavia with the latest acquisitions. The transformation of our wholesale stores and the growth of our online marketplace are also making good progress. And with the reorganisation of the Management Board of METRO AG since June 2024, we have a powerful team to drive the sCore strategy forward even more efficiently and effectively in the future and to achieve our 2030 ambitions,' says Dr Steffen Greubel, CEO of METRO AG.
Sales and earnings growth by segment
In Germany, sales in the third quarter of 2023/24 declined by -2.4%. Sales development with HoReCa customers was influenced in particular by a later start to the summer season due to the weather. Adjusted EBITDA increased in the Q3 2023/24 to €41 million (Q3 2022/23: €36 million).
In the segment West, sales declined slightly in Q3 2023/24 by -0.6%. This is also due to a weather-related later start to the summer season, which was felt in particular by HoReCa customers in France. Adjusted EBITDA declined slightly due to sales to €191 million (Q3 2022/23: €195 million).
In Russia, sales in local currency increased in Q3 2023/24 significantly by 13.0%. Reported sales increased by 7.1% and reached €0.6 billion. Adjusted EBITDA increased slightly to €42 million (Q3 2022/23: €37 million); adjusted for currency effects, adjusted EBITDA grew by €8 million.
In the segment East, sales in local currency developed very positively in Q3 2023/24 with 9.1% growth, driven by almost all countries of the segment. Reported sales increased by 13.5%. The currency effects from the previous year from the devaluation of the Turkish lira shortly before the reporting date on 30 June 2023 had an impact. Adjusted EBITDA increased due to sales to €106 million (Q3 2022/23: €89 million). Adjusted for currency effects, EBITDA increased by €10 million.
In the segment Others, sales increased in Q3 2023/24 to €77 million (Q3 2022/23: €60 million) and include in particular the METRO MARKETS sales of €51 million (Q3 2022/23: €36 million). In Q3 2023/24 adjusted EBITDA amounted to €-53 million (Q3 2022/23: €-24 million). The decline in the Others segment is, among other things, due to the expiry of license earnings from WM Holding (HK) Limited in April 2023. Transformation gains of €3 million were realised (Q3 2022/23: €-1 million). EBITDA reached €-41 million (Q3 2022/23: €-26 million).
As of 30 June 2024, the store network comprised 624 stores, of which 524 were out-of-store (OoS) locations and 89 depots.
METRO key financial figures 9M 2023/24
| METRO in figures | ||||
|---|---|---|---|---|
| Key financial figures (€ million) | 9M 2022/23 | 9M 2023/24 | Change | Change in % |
| Sales (net) | 22,647 | 22,988 | 341 | 1.5% |
| Adjusted EBITDA | 909 | 805 | -104 | -11.5% |
| EBIT | 644 | 211 | -433 | -67.2% |
| Earnings per share (EPS) in € (basic = diluted) | 1.62 | -0.13 | -1.75 | - |
| Multichannel development | ||||
|---|---|---|---|---|
| Sales development (€ million) | 9M 2022/23 | 9M 2023/24 | Change | Ambition FY 2030 |
| Store-based and other business | 17,488 | 17,124 | -363 | ~1.2x vs. 2020/21 |
| FSD | 5,078 | 5,743 | 665 | > 3 x vs. 2020/21 |
| METRO MARKETS sales | 81 | 120 | 39 | - |
| METRO MARKETS marketplace sales1 | 126 | 186 | 61 | > €3 billion |
1 Total volumes of METRO MARKETS platform (and third-party platforms) excluding VAT and after cancellations but before any deductions; contains vendor sales in full.
| Network | |||
|---|---|---|---|
| 30.9.2023 | 30.6.2024 | Change | |
| Stores & Delivery (number of countries) | 32 | 33 | 1 |
| Marketplace (number of countries) | 6 | 6 | 0 |
| DISH POS2 (number of countries) | 4 | 6 | 2 |
| Stores (number of locations) | 625 | 624 | -1 |
| of which delivery OOS3 (number of locations) | (529) | (524) | (-5) |
| FSD depots (number of locations) | 76 | 89 | 13 |
2 DISH POS is a cloud-based all-in-one POS system with solutions for the hospitality industry. The product was developed by POS supplier Eijsink. Following the acquisition by DISH Digital Solutions (formerly Hospitality Digital) in March 2022, the product has since been further developed and integrated into the range of digital DISH tools. The system in the Netherlands and Belgium is called Booq.
3 OOS refers to the existing METRO store network and includes METRO stores that supply from the store as well as stores that operate their own depot in the store.
METRO segments sales and earnings key figures Q3 2023/24
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) |
|||||
|---|---|---|---|---|---|---|---|---|
| Q3 2022/23 |
Q3 2023/24 |
Q3 2022/23 |
Q3 2023/24 |
Q3 2022/23 |
Q3 2023/24 |
Q3 2022/23 |
Q3 2023/24 |
|
| Total | 7,642 | 7,975 | -3.4% | 4.4% | -5.9% | 1.0% | 2.5% | 3.4% |
| Germany | 1,257 | 1,227 | 1.9% | -2.4% | 0.0% | 0.0% | 1.8% | -2.4% |
| West | 3,355 | 3,335 | 1.6% | -0.6% | 0.0% | 0.0% | 1.6% | -0.6% |
| Russia | 557 | 597 | -21.1% | 7.1% | -18.4% | -5.9% | -2.7% | 13.0% |
| East | 2,413 | 2,739 | -8.6% | 13.5% | -12.8% | 4.5% | 4.2% | 9.1% |
| Others | 60 | 77 | - | - | - | - | - | - |
| Adjusted EBITDA | Transformation costs (+)/ transformation gains (-) | Earnings contributions (+) from real estate transactions |
EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|---|
€ million |
Q3 2022/23 |
Q3 2023/24 |
Change (€) |
Q3 2022/23 |
Q3 2023/24 |
Q3 2022/23 |
Q3 2023/24 |
Q3 2022/23 |
Q3 2023/24 |
| Total | 332 | 327 | -5 | -148 | -3 | -1 | 8 | 480 | 339 |
| Germany | 361 | 41 | 5 | 0 | 0 | 0 | 0 | 361 | 41 |
| West | 195 | 191 | -3 | -1 | 0 | 1 | 0 | 196 | 191 |
| Russia | 37 | 42 | 5 | 0 | 0 | 0 | 0 | 37 | 42 |
| East | 89 | 106 | 17 | -149 | 0 | 0 | 0 | 237 | 106 |
| Other | -241 | -53 | -29 | 1 | -3 | -1 | 9 | -26 | -41 |
| Consolidation | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 |
METRO segments sales and earnings key figures 9M 2023/24
| Sales (€ million) | Change (€) | Currency effects | Change (local currency) |
|||||
|---|---|---|---|---|---|---|---|---|
| 9M 2022/23 |
9M 2023/24 |
9M 2022/23 |
9M 2023/24 |
9M 2022/23 |
9M 2023/24 |
9M 2022/23 |
9M 2023/24 |
|
| Total | 22,647 | 22,988 | 4.1% | 1.5% | -1.5% | -3.0% | 5.5% | 4.5% |
| Germany | 3,679 | 3,716 | 4.4% | 1.0% | 0.0% | 0.0% | 4.4% | 1.0% |
| West | 9,287 | 9,511 | 4.6% | 2.4% | 0.0% | 0.0% | 4.6% | 2.4% |
| Russia | 2,016 | 1,826 | -3.0% | -9.4% | 7.7% | -25.1% | -10.8% | 15.6% |
| East | 7,508 | 7,738 | 4.1% | 3.1% | -7.5% | -3.0% | 11.6% | 6.0% |
| Others | 157 | 196 | - | - | - | - | - | - |
| Adjusted EBITDA | Transformation costs (+)/ transformation gains (-) | Earnings contributions (+) from real estate transactions |
EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|---|
€ million |
9M 2022/23 |
9M 2023/24 |
Change (€) |
9M 2022/23 |
9M 2023/24 |
9M 2022/23 |
9M 2023/24 |
9M 2022/23 |
9M 2023/24 |
| Total | 909 | 805 | -104 | -151 | -15 | 207 | 39 | 1,267 | 858 |
| Germany | 1111 | 94 | -16 | 0 | 0 | 0 | 0 | 1111 | 94 |
| West | 427 | 439 | 13 | -3 | 0 | 5 | 1 | 435 | 441 |
| Russia | 118 | 104 | -13 | 0 | 0 | 0 | 0 | 118 | 104 |
| East | 285 | 301 | 15 | -146 | 0 | 0 | 0 | 431 | 301 |
| Other | -371 | -134 | -97 | -2 | -15 | 202 | 37 | 1671 | -82 |
| Consolidation | 5 | 0 | -5 | 0 | 0 | 0 | 0 | 5 | 0 |
1 Shift in the reporting of the previous year's figures between the Germany and Other segments in the amount of € 1 million due to a company reclassification.
METRO is a leading international food wholesaler which specialises in serving the needs of hotels, restaurants, and caterers (HoReCa) as well as independent merchants (Traders). Around the world, METRO has approx. 15 million customers who benefit from the wholesale company’s unique multichannel mix: customers can purchase their goods in one of the large stores in their area as well as by delivery (Food Service Distribution, FSD) – all digitally supported and connected. In parallel, METRO MARKETS is being developed as an international online marketplace for the needs of professional customers which has been growing and expanding continuously since 2019. Acting sustainably is one of the company principles of METRO which has been listed in various sustainability indices and rankings, including MSCI, Sustainalytics and CDP. METRO operates in more than 30 countries and employs over 89.000 people worldwide. In financial year 2022/23, METRO generated sales of €30.6 billion.
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