Capital structure

As of 30 September 2018, the METRO group balance sheet reports equity attributable to continuing and discontinued operations in the amount of €3.1 billion (30/9/2017: €3.2 billion). The decrease in the reserves retained from earnings is due to currency translation differences in the amount of €189 million and dividend payouts for financial year 2016/17 in the amount of €254 million. This is offset by the profit for the period attributable to the shareholders of METRO AG, which amounts to €344 million, and the remeasurement of defined benefit pension plans in the amount of €17 million.

The equity ratio stands at 20.5% (30/9/2017: 20.3%).

Negative reserves retained from earnings are not due to a loss history but to a reclassification of the equity item net assets attributable to former METRO GROUP, recognised in the combined financial statements of the MWFS GROUP as of 1 October 2016, to the legally defined equity items.

Net debt pertaining to continuing operations has decreased slightly by €21 million compared to the previous year and totals €2.7 billion as of 30 September 2018 (30/9/2017: €2.7 billion). Cash and cash equivalents decreased by €0.2 billion as of 30 September 2018 to €1.3 billion (30/9/2017: €1.5 billion). In contrast, financial liabilities decreased by a similar amount, by €0.2 billion to €4.0 billion (30/9/2017: €4.2 billion).

The non-current liabilities of the continuing segment amount to €3.4 billion as of 30 September 2018. The previous year’s figure, adjusted for the non-current liabilities of the hypermarket business, totalled €3.6 billion. This change of €−0.2 billion is primarily due to the utilisation of provisions and reclassification to current liabilities of €120 million.

As of 30 September 2018, METRO had current liabilities totalling €8.7 billion (30/9/2017: €9.0 billion (adjusted)). The decline of €0.3 billion compared to the adjusted figure of the previous year is primarily due to a reduction in financial liabilities by €140 million. Provisions declined by €56 million, which was primarily due to utilisation. In the trade liabilities, currency effects, on the one hand, and changed payment arrangements and increased purchasing volumes, on the other hand, offset each other almost in full in individual countries.

Compared to 30 September 2017, the debt ratio of the continuing segment has declined by 0.2 percentage points, from 79.7% to 79.5%. Correspondingly, the share of current liabilities in total liabilities amounts to 71.9% ( 30 September 2017: 71.3%). This represents an increase of 0.6 percentage points.