Acquisitions of Classic Fine Foods and RTS strengthen sales lines
Sale of Galeria Kaufhof successfully completed; net cash inflow of €1.75 billion, above original forecast
METRO GROUP anticipates good Christmas business
According to preliminary figures, METRO GROUP increased its like-for-like sales by 1.5% in financial year 2014/15. This means that the Düsseldorf-based retail and wholesale company has achieved its full-year sales target. Reported sales of €59.2 billion fell 1.2% short of the previous year’s figure due to negative currency and portfolio effects. However, sales in local currencies increased by 0.5%. “Financial year 2014/15 was a turning point for METRO GROUP,” said Olaf Koch, Chairman of the Management Board of METRO AG. “We managed to make our core business dynamic again and strengthen our balance sheet even further. We reached our full-year like-for-like sales target. We also confirm our guidance for EBIT before special items1. Following the successful sale of Galeria Kaufhof, we also once again have the financial means to make further acquisitions to supplement and strengthen our sales lines. These include the recently acquired companies Classic Fine Foods and RTS”.
METRO GROUP’s like-for-like sales rose by 1.3% in Q4 2014/15. Both METRO Cash & Carry and Media-Saturn recorded increases in like-for-like sales in Q4 2014/15 and over financial year 2014/15 as a whole. Reported sales fell by 1.1% to €14.2 billion. However, this was due to currency and portfolio effects. Sales in local currencies increased by 1.9%.
METRO GROUP also significantly expanded its business in the strategic growth areas of online retail and delivery in Q4 2014/15 and, in doing so, reinforced its market position and customer relevance in many countries. METRO GROUP expects a positive Christmas business and has begun the current quarter with an optimistic outlook.
METRO GROUP has made further progress in optimising its portfolio: The most important event in Q4 was the completion of the sale of Galeria Kaufhof as announced on 30 September 2015. The value of the transaction stood at €2.825 billion, including various liabilities. METRO GROUP received the net cash payment of €1.75 billion, which was above the original forecast, in due time.
METRO GROUP also made two acquisitions in the fourth quarter:
Classic Fine Foods (CFF) is one of the leading providers of food service distribution, the direct delivery of food to customers from the hotel, restaurant and catering sectors in large cities in Asia and the Middle East. CFF supplies premium hotels and restaurants. CFF sales have been in-cluded in METRO GROUP sales since September.