METRO raises outlook for financial year 2020/21

27 July 2021
The Management Board of METRO AG has decided to increase its outlook for sales and EBITDA for the financial year 2020/21. The decisive factor is the better than expected business development since the easing of restrictions.
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Dedicated operational measures to support the re-start of our cus-tomers resulted in continuous market share gains. The currency ad-justed sales to HoReCa customers grew by 57% in Q3 2020/21, ex-ceeded the pre-pandemic level for the first time in June and contin-ued to develop positively in July.

METRO now expects:

  • Sales (both total sales and like-for-like) to decline by approxi-mately -0.5% to -3.5% vs. previous year (previously: -3% to -6% below previous year)
  • A development of EBITDA adjusted of +50 million EUR to -75 mil-lion EUR to previous year (previously: decline by roughly EUR -50 million to EUR -175 million to previous year)

The outlook assumes stable exchange rates and no further adjustments to the portfolio. A partial re-introduction of restrictions is reflected with the lower end of the outlook corridor considering the still high level of uncertainty and volatility regarding the further development of the pandemic.

For the financial year, regions with a high share of hospitality customers, like the Western Europe segment, experience the largest impact of government restrictions on sales and earnings. Positive sales developments are expected in the segments Russia, Eastern Europe and Asia. On the earnings side, a heterogeneous development in the segments is expected, with the group result being determined in particular by the further sales-dependent development in Western Europe.

According to preliminary figures for Q3 2020/21, like-for-like sales grew by 15.0% compared to previous year. EBITDA adjusted (excluding transformation costs and earnings contributions from real estate transactions) grew to around EUR 310 million. In the cumulative 9M 2020/21 perspective, this results in the following development for sales and EBITDA:

  • Total sales and like-for-like sales declined by -3.5% and -3.7% respectively
  • EBITDA adjusted grew by 24 million EUR (at constant currency) compared to previous year

The 9M/Q3 2020/21 report will be published as scheduled on July 28, 2021 at 18:30.

 

METRO is a leading international wholesale company with food and non-food assortments that specialises in serving the needs of hotels, restaurants and caterers (HoReCa) as well as independent traders. Around the world, METRO has some 16 million customers who can choose whether to shop in one of the large-format stores, order online and collect their purchases at the store or have them delivered. METRO also supports the competitiveness of entrepreneurs and independent businesses with digital solutions and thereby contributes to cultural diversity in retail and hospitality. Sustainability is a key pillar of METRO’s business. METRO has been listed in the Dow Jones Sustainability Index for 7 consecutive years. The company operates in 34 countries and employs more than 97,000 people worldwide. In financial year 2019/20, METRO generated sales of €25.6 billion.

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