Web Siteleri Arama

METRO Group
Almanya
Polonya
Romanya
Russia
Türkiye

Press

METRO Group’s sales 4.9 percent up in the third quarter

02.11.2005

METRO Group’s sales 4.9 percent up in the third quarter

In the third quarter of fiscal 2005, METRO Group boosted sales by 4.9 percent to € 14.06 billion. Outside Germany, sales went up 11.4 percent. The share of international sales continued to rise, to 53.1 percent in the third quarter.

In Germany by contrast, the market climate is influenced by ongoing uncertainty. With the Election’s outcome, the generally expected improvement in consumer sentiment failed to materialize. The discussions about imminent amendments to the social security systems as well as potential tax rate increases have contributed to additional uneasiness of the consumers. Furthermore the business development of the Real hypermarkets remained behind expectations. Thus the visibility for the fourth quarter is impaired. Therefore the METRO Group adjusts her sales expectation for 2005 and now anticipates a sales growth of around 4 percent.

The operating development of Real will result in a review of the usability of existing tax-loss-carry-forwards for the 2005 Group accounts. This could lead to a one-off non cash deferred tax expense in the area of a low-triple-digit million Euro amount. Accordingly, EPS in 2005 would significantly be below prior year’s level.

Adjusted for this one-off, EPS should grow in mid single digit percentage territory.

This expectation does not include any implication from Praktiker leaving the Group.

Dr. Hans-Joachim Körber, CEO of METRO Group: "We are not satisfied with the performance of Real. The measures introduced some months ago so far have not led to an improvement of its business in Germany. We continue to push forward with the repositioning of this sales division."

Dr. Körber stressed: "Against this background it is all the more gratifying to see that our growth drivers – Metro Cash & Carry as well as Media Markt and Saturn – very dynamically continued their positive business development. Our international business in particular is performing very well. In the third quarter we again achieved a double-digit growth abroad. All signs continue to point to growth."

Business in Eastern Europe continued to experience an extremely successful trend at an increase in sales by 22.0 percent in the third quarter. In Western Europe, sales rose 5.7 percent despite the partly difficult market environment, in the Asian/African region, 5.9 percent. In Germany sales fell 1.6 percent.

Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to € 596.7 million in the third quarter, increasing by 0.3 percent against the prior-year level. EBITA declined 5.4 percent to € 299.4 million. Earnings before taxes (EBT) rose 18.1 percent to a total of € 248.7 million. Thereof, income from investments increased from € 15.5 million to € 61.0 million. This figure includes the gain from reducing the stake held in the Payback operator Loyalty Partner. The earnings per share (EPS) were improved by € 0.08 to € 0.45, with higher income from investments.

In the first nine months, METRO Group lifted sales by 4.2 percent to € 41.30 billion. EBITDA rose 1.5 percent to € 1.65 billion in this period. EBITA fell 2.5 percent to € 762.5 million. The result was essentially influenced by the business trend at Real. At a higher income from investments, EBT went up by 13.8 percent to € 515.7 million, EPS by € 0.10 to € 0.92.

In total, in the third quarter 30 new locations were opened in Germany and abroad, 21 of them by Metro Cash & Carry as well as by Media Markt and Saturn. In line with the ongoing optimization of the store network, nine food retail locations were divested. Hence at the end of the third quarter 2005, METRO Group was represented at 2,463 locations in a total of 30 countries.

Metro Cash & Carry continues on sustainable growth track

In the third quarter 2005, Metro Cash & Carry boosted sales by 7.3 percent in a year-on-year comparison, to € 6.89 billion. In Germany, sales almost reached the prior-year mark. The international business took a very positive course. The most substantial increase was accomplished by Metro Cash & Carry in Eastern Europe where sales sprang up by 22.8 percent. Particularly in Russia, Romania, the Ukraine and Turkey, the sales division reported a gratifying development. This sales division with the highest sales rate within the METRO Group thus benefited from internationalization and dynamically pursued its sustainable growth. The international share in sales rose from 78.5 percent to 80.1 percent. Sales in Western Europe were 0.8 percent up. Especially in France, Spain and Belgium Metro Cash & Carry achieved excellent growth on a like-for-like basis. In Asia/Africa, sales increased 18.0 percent. The course of business in China continued distinctly positive.

Thanks to the highly satisfactory business trend in Eastern Europe EBITA distinctly improved 8.8 percent, to € 170.0 million.

In its role as growth driver of the METRO Group, Metro Cash & Carry consistently continued the pursuit of its international expansion strategy. The distribution network was extended by eleven locations – five stores in Russia and one store each in Spain, Italy, the Czech Republic, Romania, China and Ukraine.

Difficult business situation in the food retail trade

In the food retail business the development at Real in Germany was distinctly behind expectations, also against the background of special effects. Like-for-like the sales at Real and Extra shrank in the third quarter by 1.7 percent. In absolute figures sales declined 6.6 percent to € 2.33 billion, following the divestment of 146 Extra stores since the beginning of the year. In Germany, sales decreased by 3.1 percent on a like-for-like basis. The general feeling of uncertainty among consumers had a sensibly negative impact on private consumption and the food retail trade in Germany.

The marketing and price activities at Real will be continued consistently. Towards the end of the third quarter marketing campaigns were initiated on the occasion of the 40th anniversary of Real. In addition, a further cost cutting package will be launched.

In Eastern Europe, Real’s business took a very positive course. There, sales climbed 19.3 percent. Real operates 28 hypermarket stores in Poland, seven in Turkey and opened its first hypermarket in Moscow in the third quarter. Until the end of 2005, Real will open another two stores in Russia.

EBITA of food retail accounted for € -32.5 million compared to € 8.1 million in the respective prior-year quarter. The earnings trend reflects the reduced sales volume as well as the expenditures for marketing and price campaigns at Real in Germany.

Media Markt and Saturn report double-digit percent growth in sales and earnings

The consumer electronics centers of Media Markt and Saturn continued expansion at a high rate in the third quarter. In Germany and other European countries they won additional market shares. Media Markt and Saturn achieved double-digit percent growth in sales and earnings, thus again proving to be a significant growth driver for the METRO Group.

Sales increased by 10.6 percent to € 3.04 billion. In Germany, Media Markt and Saturn attained a 4.4 percent sales rise. In Europe, the consumer electronics centers succeeded in securing additional market shares and strengthening their leading position. Sales in Western Europe sprang up by 17.7 percent. The course of business proved very satisfactory mainly in Spain, the Netherlands, Belgium and France. In Poland and Hungary sales even surged by 27.9 percent, like-for-like by 7.0 percent. The international share in the sales of Media Markt and Saturn rose from 42.9 percent to 46.1 percent.

Taking into consideration the higher contribution to earnings from abroad, EBITA improved by 14.0 percent to € 99.7 million.

In the third quarter, Media Markt and Saturn opened ten new stores. In Germany, the location network was extended by five consumer electronics centers, in Italy by two and in the Netherlands, Poland and Hungary by one store each. The sales division is preparing its market entry to Russia and Sweden and will then be represented in 14 European countries.

Praktiker distinctly improves earnings

In the third quarter, the Praktiker home improvement and DIY centers boosted sales over again and clearly intensified their favorable earnings trend. Sales rose 3.5 percent to € 775.9 million. In Germany, the course of business continued to be positive in a challenging competitive environment. Despite the strong prior-year basis for comparison, sales were lifted by 0.9 percent.

The international business continued its very satisfactory development, especially in the new expansion countries, Romania and Bulgaria. In Eastern Europe, sales rose by a total of 12.6 percent. This attests to the attractiveness of Praktiker’s concept for the mentioned region. The international share in sales increased from 26.2 percent to 28 percent.

The successful course of business at Praktiker is also reflected in the sustainable improvement of its earnings. In the third quarter, EBITA distinctly improved from € 18.6 million to € 28.7 million.

After carefully evaluating all possible scenarios, the METRO Group has decided to pursue the IPO of Praktiker.

High prior-year mark and consumer restraint in the department store business

Compared to the high prior-year level, sales of the Kaufhof department stores dropped 7.2 percent to € 832.4 million. In Germany, sales declined by 7.8 percent on a like-for-like basis. The prior-year quarter was characterized by the successful campaign on the occasion of the 125th anniversary of the company. Moreover, the generally expected improvement of consumer mood after the elections to the German Parliament did not set in.

In Belgium by contrast sales took a gratifying course at an increase of 14 percent.

The Kaufhof Warenhaus AG reported an EBITA of € -2.5 million compared to € 2.7 million in the respective prior-year quarter.

Quarterly Report Q3 2005 pdf (99 KB)

METRO Group is one of the most important international retailing companies. In 2004 the group reached sales of € 56.4 billion. The company has a headcount of about 250,000 employees and operates around 2,400 locations in 30 countries. The operating business is performed by the sales divisions which operate independently in the market: Metro/Makro Cash & Carry – world market leader in cash & carry wholesale, Real SB hypermarkets and Extra supermarkets, Media Markt and Saturn – market leader in consumer electronics centers in Europe, Praktiker home improvement and DIY centers, and Galeria Kaufhof department stores.

Hızlı Arama