METRO Group increases sales in a difficult consumer environment

METRO Group increases sales in a difficult consumer environment

METRO Group increases sales in a difficult consumer environmentcbi :/ / / cms/337264

  • METRO GROUP sales grow in the 3rd Quarter adjusted for the delivery of macro UK by 2.0% to € 15.9 billion
  • Results affected by Euro crisis and as a result of significantly lower income from property sales below last year
  • EBIT before special items in the third Quarter of € 398 million
  • METRO Cash & Carry with double-digit sales growth in Russia and Asia
  • Media-Saturn with significantly higher online sales
  • Increase in operating cash flow (+296 € million in 9M 2012) thanks to an improved net operating assets
  • Net debt reduced by € 0.1 billion over the previous year

cbi :/ / / cms/337268

Despite a difficult consumer environment, particularly in the euro area, METRO GROUP in the 3rd Quarter of 2012 continued the positive sales trend of the first half: Adjusted for the divestment of macro UK sales from July to September rose year on year by 2.0% to € 15.9 billion. “Has Thanks to our numerous measures to increase the customer added value to our business showed mostly stable. However, these measures in the current economic environment is not fully effective, which is reflected in our quarterly results,” said Olaf Koch, CEO of METRO AG. EBIT before special items came in 3rd Quarter to € 398 million (previous year: € 614 million). As a result of METRO GROUP drop is mainly attributable burden of the overall economic situation in southern and parts of eastern Europe. Mathematically, about half of the earnings decline is also due to significantly lower revenues from the sale of property. “Given the challenging economic environment, we will continue the transformation of our business model consequently.’ll See with the recent strategic decisions on the right track,” said Koch. cbi :/ / / cms/337267
New sales channels and formats, an even more customized appropriate assortment, extended customer support and services, and the price positioning included in the 3rd Quarter of the focal points of the sales divisions. METRO Cash & Carry put about the supply revenue to continue: From January to September 2012, sales increased by almost 40% to more than € 1.6 billion (9M 2011: € 1.2 billion). Sales of private label products in the Group rose by 10 percent to 5.5 billion euros (9M 2011: € 5.0 billion). The online sales of Media-Saturn almost tripled to € 480 million (9M 2011: € 169 million). Since 3 Can Quarterly Media Markt and Saturn customers also not only online and in the electronics store, but also shop via mobile phone. Real-Online Shop sales grew from January to September 2012 compared to the same period by more than a third to € 21 million. In addition, Real has the 3rd Quarterly unites its previously separate sites for the stationary business and the online store at www.real.de. Galeria Kaufhof, thanks to the role of the region in favor of high-margin consumer electronics merchandise categories such as accessories, clothing and footwear in nearly all branches expanded its market share in textiles. cbi :/ / / cms/337269
In addition to measures to increase sales and improve efficiency, the METRO GROUP will intensify in the coming months their activities to improve the cash flow and the net operating assets further. Also, the reduction in net debt is a clear goal for the company. cbi :/ / / cms/337270
Revenue and earnings development cbi :/ / / cms/337271
The METRO GROUP sales increased from January to September 2012 by 1.5% to € 47.4 billion (9M 2011: € 46.7 billion). In the 3rd Quarter of 2012, sales rose by 0.6% to € 15.9 billion (Q3 2011: € 15.8 billion). Adjusted for the sale of Macro UK sales growth amounted to 2.0%. The business of macro UK was the beginning of the 3rd Quarter of 2012 were sold, which is why the sales and earnings since that date no longer in the business of METRO GROUP. cbi :/ / / cms/337273
In Germany , sales rose from January to September 2012 by 0.5% to € 17.8 billion. In the 3rd Quarter revenues fell also because of a lack of sales days in September and a decline in business with non-food sales rose 2.0% to € 5.9 billion. However Galeria Kaufhof was also like-a very positive sales trend. cbi :/ / / cms/337274
Sales in the international business increased from January to September 2012 rose by 2.2% to € 29.5 billion (in local currency: +2.0%). The international share of sales from 61.9% to 62.3%. In the 3rd Quarter revenues increased 2.2% to € 10.0 billion (+0.7% in local currency). cbi :/ / / cms/337275
In Western Europe , sales from January to September 2012 decreased by 2.9% to € 14.3 billion (in local currency: -3.1%) and was mainly due to the disposal of Saturn France last year and the sale of UK macro beginning of the 3rd Quarter of 2012 adversely affected. Excluding these divestitures, sales were slightly higher than the same period last year. During the third Quarter’s economic problems increasingly polluted in several key markets, the sales trend. Revenues for the third Quarter by 5.4% to € 4.7 billion (in local currency: -5.6%). cbi :/ / / cms/337276
Sales in Eastern Europe increased from January to September 2012 by 3.8% to € 12.6 billion. In local currency, sales rose 5.2%. In the 3rd Quarter continued the strong growth momentum. Sales rose by 6.2% to € 4.4 billion (in local currency: +4.8%) to. cbi :/ / / cms/337277
In the region Asia / Africa continued its strong growth momentum continues. Sales rose from January to September 2012 increased by 28.7% to € 2.7 billion. In local currency, sales grew by 17.7%. In the 3rd Quarterly sales grew further and increased by 32.2% to € 0.9 billion (in local currency: +19.1%). cbi :/ / / cms/337278
METRO GROUP
9M 2011
(in € billion)
9M 2012
(in € billion)
Change
Change in local currency
Turnover
46.7
47.4
1.5%
1.4%
Germany
17.8
17.8
0.5%
0.5%
Western Europe (excluding Germany)
14.7
14.3
-2.9%
-3.1%
Eastern Europe
12.1
12.6
3.8%
5.2%
Asia / Africa
2.1
2.7
28.7%
17.7%

cbi :/ / / cms/337279

METRO GROUP
Q3 2011
(€ bn)
Q3 2012
(€ bn)
Change
Change in local currency
Turnover
15.8
15.9
0.6%
-0.3%
Germany
6.0
5.9
-2.0%
-2.0%
Western Europe (excluding Germany)
5.0
4.7
-5.4%
-5.6%
Eastern Europe
4.2
4.4
6.2%
4.8%
Asia / Africa
0.7
0.9
32.2%
19.1%

cbi :/ / / cms/337280

The operating result EBIT adjusted for special items decreased in the first nine months of 1066 million € to € 704 million, including special items of € 297 million (9M 2011: € 93 million). it fell to € 407 million (9M 2011: € 972 million). In the special items relate mainly to the impairment loss in the amount of € 166 million from the sale of UK macro and to expenses of € 131 million for restructuring measures in particular. In addition to the comparable store sales decline in southern and parts of eastern Europe, the targeted investments loaded in new skills, distribution channels and price positioning in the course of the restructuring result. In the 3rd Quarter of 2012, EBIT before special items declined by € 614 million to € 398 million. For the decline in the real estate segment was also responsible. In the same quarter last year, the successful placement of a property package in Italy, with a contribution of more than € 100 million was included. cbi :/ / / cms/337281
The earnings before taxes (EBT) amounted in the first nine months of 2012 before special items, to € 275 million (9M 2011: € 557 million). Excluding special items, decreased to shareholders of METRO AG attributable net profit to € 154 million (9M 2011: € 294 million). In the 3rd Quarter, which the shareholders of METRO AG attributable net profit at € 125 million (Q3 2011: € 227 million). The earnings per share were adjusted for special items in the first nine months of 2012 from € 0.47 to € 0.90 in the same period last year. In the 3rd Quarterly earnings per share before special items came to € 0.38 (Q3 2011: € 0.70) back. cbi :/ / / cms/337282
The operating cash flow of METRO GROUP has continued to improve: Operating activities resulted from January to September 2012 in a cash outflow of € 2.1 billion to € 2.4 billion in the same period last year. Cash flow improved in spite of the decline in EBIT due to strict inventory management and improved supplier management. The change in the net working capital improved significantly to € 398 million compared to the same period last year. Thanks to the improved operating cash flow performance has the net debt compared to 30 September 2011 decreased by € 0.1 billion. cbi :/ / / cms/337283
Result of METRO GROUP (€ million)
9M 2011
9M 2012
EBIT before special items
1066
704
Earnings before taxes (EBT) before special items
557
275
The shareholders of METRO AG attributable net profit before exceptional items
294
154
Earnings per share before special items of €
0.90
0.47
EBIT
972
407
Earnings before taxes (EBT)
463
-44
Profit for the period
266
-21
The shareholders of METRO AG’s net profit attributable to
227
-26
Earnings per share
0.69
-0.08

cbi :/ / / cms/337284

Result of METRO GROUP (€ million)
Q3 2011
Q3 2012
EBIT before special items
614
398
Earnings before taxes (EBT) before special items
428
236
The shareholders of METRO AG attributable net profit before exceptional items
227
125
Earnings per share before special items of €
0.70
0.38
EBIT
563
346
Earnings before taxes (EBT)
377
162
Profit for the period
211
89
The shareholders of METRO AG’s net profit attributable to
190
77
Earnings per share
0.58
0.24

cbi :/ / / cms/337285

Outlook cbi :/ / / cms/337286
METRO GROUP continues to expect a very uncertain economic situation, which has negative effects on consumer sentiment. This is especially true for the crisis countries of Southern Europe, where record unemployment and fiscal measures to reduce public debt burden, consumer spending, especially for non-food significantly. cbi :/ / / cms/337287
The continuing difficult economic situation in many European countries slows the positive sales trend throughout 2012. This compares to a range of measures in all sales divisions that have increased sales to the target and also recorded its first successes. These measures have so far this year helped to offset the crisis-related decline in consumer spending, although the result is still under pressure. METRO GROUP therefore also for the entire year of an increase in sales, EBIT before special items is expected to be worth around € 2 billion. cbi :/ / / cms/337288
Development of business segments cbi :/ / / cms/337289
METRO Cash & Carry with dynamic growth in Eastern Europe and Asia cbi :/ / / cms/337290
Sales of METRO Cash & Carry rose from January to September 2012 by 2.1% to € 23.0 billion (in local currency: +1.6%). A major factor was the dynamic growth in Eastern Europe and Asia. For-like sales increased by 0.5%. In the 3rd Quarter, sales growth continued in the first Half away. The acceleration of economic downturn in southern Europe and parts of Eastern Europe but stressed the business of customers and hence the sales of METRO Cash & Carry. Therefore, especially the sales of non-food items have been in many countries continues to decline. cbi :/ / / cms/337291
In Germany , sales from January to September 2012 decreased by 3.0% to € 3.6 billion. The decline was almost entirely due to the optimization of the store portfolio (Q4 2011: 10 deaths). In the 3rd Quarter was the sales development compared to the 1st Half of the year. Besides a missing selling in September, the decline is mainly due to weaker business with non-food sales. Sales in Western Europe from January to September 2012 despite the increasingly macroeconomic conditions as well as the sale of a total of 8.2 billion UK Macro In a difficult overall market gained METRO Cash & Carry market share. The end of the third Quarter, the sales performance deteriorated significantly in particular in southern Europe. It affects mainly the non-food business. In Eastern Europe , sales grew from January to September 2012, despite the difficult macroeconomic conditions dynamically by 4.4% to € 8.7 billion. In local currency, sales increased by 5.4%. Also like for like sales increased significantly by 1.8%. Thus built METRO Cash & Carry market share in many countries continues. In the 3rd Quarter, revenue growth continued in Eastern Europe off again. In Russia, like sales grew double digits once again. In Romania was affected sales in the third Quarter to the second good Quarter tie and like for like sales rose further. Overall, 10 of 14 countries reported in the 3rd Quarter more sales trend than in the first half of 2012 on. Sales in Asia / Africa increased in the period from January to September 2012 by 28.0% to € 2.6 billion (in local currency: +17.1%). All countries reported, including the local currency, back to high growth rates. End of the 3rd Quarter, China was already the fourth largest cash and carry world country. The international share of sales increased from January to September 2012 from 83.7% to 84.5%. cbi :/ / / cms/337292
Mainly due to the sale of UK macro and by restructuring costs that went EBIT from January to September 2012 € 256 million back (9M 2011: € 527 million). Total special items of € 200 million were generated (9M 2011: € 42 million) and include both the sale of UK macro (€ 123 million) and expenses for restructuring in several countries, especially for METRO Cash & Carry Germany. EBIT before special items was from January to September € 456 million (9M 2011: € 569 million). The decline in earnings reflects the development of features that will enhance the customer value, which could be compensated by efficiency gains in other areas only partially. Moreover, the result was affected by higher expansion costs and price investments. In the 3rd Quarter earnings performance was also affected by weaker sales in like-especially in Southern Europe: The EBIT before special items fell by € 276 million to € 237 million.
 cbi :/ / / cms/337293
Metro Cash & Carry
9M 2011
(in € billion)
9M 2012
(in € billion)
Change
Change in local currency
Turnover
22.5
23.0
2.1%
1.6%
Germany
3.7
3.6
-3.0%
-3.0%
Western Europe (excluding Germany)
8.6
8.2
-3.9%
-3.9%
Eastern Europe
8.3
8.7
4.4%
5.4%
Asia / Africa
2.0
2.6
28.0%
17.1%
EBIT (before special items)
569 million
456 million
-113 Million
 

cbi :/ / / cms/337294

Metro Cash & Carry
Q3 2011
(€ bn)
Q3 2012
(€ bn)
Change
Change in local currency
Turnover
7.7
7.8
0.8%
-0.6%
Germany
1.2
1.2
-5.1%
-5.1%
Western Europe (excluding Germany)
3.0
2.7
-9.3%
-9.3%
Eastern Europe
2.9
3.1
6.6%
5.3%
Asia / Africa
0.7
0.9
32.2%
19.2%
EBIT (before special items)
276 million
237 million
-39 Million
 

cbi :/ / / cms/337295

Real-like sales growth in Germany cbi :/ / / cms/337296
Real’s sales fell slightly from January to September 2012 increased by 0.4% to € 7.9 billion. In local currency, sales rose 0.3%. Due to a weaker performance in non-food sales in the third Quarter of 2012 by 1.5% to € 2.6 billion back (in local currency: -1.7%). Besides a Loyalty in the summer, did not meet expectations, led the relocation of the campaign focus in the 4th Quarter to a decrease in sales mainly non-food sales. In addition, also burdened one selling the sales trend. The Real online shop continued to grow dynamically. From January to September 2012, sales have expanded over the same period by more than a third. cbi :/ / / cms/337297
In Germany , sales from January to September 2012 was at the level of the previous year, reaching € 5.8 billion. Like for like sales grew by 0.7%. Thus Real maintained its position despite face charges in the hypermarket segment. Sales in Eastern Europe went from January to September 2012 due to exchange rate by 1.4% to € 2.1 billion. In local currency, sales grew by 1.3%. In the 3rd Quarter, sales increased by 1.3% to € 0.7 billion (in local currency: +0.7%). Increasing sales of food offset the continued sluggish demand for non-food more than. All countries except Poland grew like for like. In Romania, continued the trend continues: the first time in more than two years, a-like sales growth achieved. Russia continued to achieve above-average growth rates. cbi :/ / / cms/337298
The EBIT before special items came in the first nine months of 2012 from € -4 million (9M 2011:13 million €). In the 3rd Quarter, EBIT before special items declined by € 24 million to € 2 million back. It was a better result in the international business and the revenues were related decline in earnings from the transfer of the campaign focus in the 4th Quarter in Germany not compensate.  cbi :/ / / cms/337299
Real
9M 2011
(in € billion)
9M 2012
(in € billion)
Change
Change in local currency
Turnover
7.9
7.9
-0.4%
0.3%
Germany
5.8
5.8
0.0%
0.0%
Eastern Europe
2.1
2.1
-1.4%
1.3%
EBIT (before special items)
13 million
-4 Million
-17 Million
 

cbi :/ / / cms/337304

Real
Q3 2011
(€ bn)
Q3 2012
(€ bn)
Change
Change in local currency
Turnover
2.6
2.6
-1.5%
-1.7%
Germany
1.9
1.9
-2.6%
-2.6%
Eastern Europe
0.7
0.7
-1.3%
0.7%
EBIT (before special items)
24 million
2 million
-22 Million
 

cbi :/ / / cms/337307

Media-Saturn is growing in Eastern Europe continues to be dynamic cbi :/ / / cms/337308
Sales of Media-Saturn rose from January to September 2012 in an increasingly difficult market by 2.0% to € 14.3 billion (in local currency: +2.0%). In the 3rd Quarter, sales increased by 1.4% to € 4.8 billion. The online trade grew dynamically by acquiring Redcoon last year and the successful launch of the multi-channel offerings. The online sales increased to € 480 million to (9M 2011: € 169 million). cbi :/ / / cms/337309
In Germany , sales grew from January to September 2012 increased by 3.4% to € 6.5 billion. Like basis, sales were level with the prior year period. In the 3rd Quarter, sales were also due to a missing trading day slightly lower. The multi-channel offer was still very positively received by customers. The product range was expanded and encompassed around the end of September 6000 at Mediamarkt.de and over 6,500 in Saturn.de. The online sales from January to September € 235 million. Thus, 3.6% of sales were generated online. cbi :/ / / cms/337310
In Western Europe , sales from January to September 2012 went up by 1.5% (in local currency: -1.9%). Adjusted for the divestment of the Saturn France sales grew by 2.3%. The difficult economic conditions dampen the demand for consumer electronics, especially in southern European countries, clearly. In this environment, Media-Saturn was able to expand its market share. In the 3rd Quarterly sales of Media-Saturn increased by 0.5%. The online sales in Western Europe continued to develop very dynamically, reaching € 231 million. In the Netherlands and in Italy the online sales growth of Media-Saturn was above the online market. cbi :/ / / cms/337311
In Eastern Europe , sales increased significantly from January to September 2012 increased by 7.0% to € 1.8 billion (in local currency: +8.8%). Like for like sales grew by 2.3%. In the 3rd Quarterly sales grew mainly in Russia and Turkey to clear. In Asia , sales increased further due to expansion. cbi :/ / / cms/337312
The EBIT before special items fell from January to September 2012 to € 6 million (9M 2011: € 163 million). In addition to the sales-related decline in earnings weighed on the price raise profile and reduced advertising expenses the result. There were also higher expansion costs, higher start-up costs as well as costs for the further expansion of the multi-channel business. In the 3rd Quarter earnings was particularly impacted by the decline in like for like sales growth and price investments. Nevertheless, EBIT before special items was in the 3rd Quarter with € 73 million clearly positive. To this positive result, Germany has contributed significantly. cbi :/ / / cms/337313
Media-Saturn
9M 2011
(in € billion)
9M 2012
(in € billion)
Change
Change in local currency
Turnover
14.0
14.3
2.0%
2.0%
Germany
6.3
6.5
3.4%
3.4%
Western Europe (excluding Germany)
6.0
6.0
-1.5%
-1.9%
Eastern Europe
1.7
1.8
7.0%
8.8%
Asia (China)
61 million
100 million
39 million
 
EBIT (before special items)
163 million
-6 Million
-101 Million
 

cbi :/ / / cms/337314

Media-Saturn
Q3 2011
(€ bn)
Q3 2012
(€ bn)
Change
Change in local currency
Turnover
4.7
4.8
1.4%
0.9%
Germany
2.1
2.1
-0.6%
-0.6%
Western Europe (excluding Germany)
2.0
2.0
-0.5%
0.3%
Eastern Europe
0.6
0.7
9.6%
7.4%
Asia (China)
22 million
30 million
8 million
 
EBIT (before special items)
141 million
73 million
-68 Million
 

cbi :/ / / cms/337315

Galeria Kaufhof with significant sales growth in the third Quarter of 2012 cbi :/ / / cms/337316
Sales at Galeria Kaufhof period from January to September 2012 slightly above the same period last year, rising to € 2.1 billion. Like basis, sales were level with the prior year period. In the 3rd Quarter improved sales performance and significantly increased by 1.8% to € 0.7 billion. For-like sales grew by 2.8%. cbi :/ / / cms/337317
In Germany , Galeria Kaufhof has modernized from January to September 11 more locations fundamentally. The consumer electronics sector has now given up in almost all branches favor high-margin product groups from the areas of accessories, clothing and footwear. In the first nine months increased Galeria Kaufhof sales slightly despite four closures, to € 2.0 billion. In the 3rd Quarterly sales rose despite a lack of sales days, by 2.1%. Like for like sales increased by 3.3%. cbi :/ / / cms/337318
In Western Europe , sales from January to September 2012 to put up 0.7%. Benefited from a good business development in textiles. Like for like sales increased by 0.6%. In the 3rd Quarterly sales declined as the summer sales already at the end of the 2nd Quarter started. The EBIT before special items improved from January to September 2012 due to better gross profit margin during the sales area optimization and strict cost management to € -24 million (9M 2011: € -40 million). In the 3rd Galeria Kaufhof quarter improved significantly. EBIT before special items came thanks to higher commodity earnings and cost savings of € 2 million (Q3 2011: € 9 million). cbi :/ / / cms/337319
Galeria Kaufhof
9M 2011
(in € billion)
9M 2012
(in € billion)
Change
Turnover
2.1
2.1
0.1%
Germany
2.0
2.0
0.1%
Western Europe
0.1
0.1
0.7%
EBIT (before special items)
-40 Million
-24 Million
16 million

cbi :/ / / cms/337320

Galeria Kaufhof
Q3 2011
(€ bn)
Q3 2012
(€ bn)
Change
Turnover
0.7
0.7
1.8%
Germany
0.6
0.7
2.1%
Western Europe
45 million
44 million
-1 Million
EBIT (before special items)
-9 Million
-2 Million
7 million

cbi :/ / / cms/337321

Property cbi :/ / / cms/337322
The Real Estate segment includes real estate and real estate-related METRO GROUP’s services. At 30 September 2012, 653 sites were owned by METRO GROUP (31.12.2011: 688). cbi :/ / / cms/337323
The result of the real estate segment consists mainly of rental income paid by the sales divisions of METRO GROUP. EBIT before special items fell to € 411 million (9M 2011: € 520 million). This decrease was primarily due to lower third contributions from the active portfolio management in Quarter due. In the 3rd Quarterly EBIT before special items of € 128 million (Q3 2011: € 245 million). The prior year quarter included EBIT to profit from the sale of a property package in Italy. Moreover, since the omitted
third Quarter of the rental income from macro UK. 

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