Overview of financial year 2017/18 and outlook

Earnings position

The following section will report on continuing and discontinued operations.

  • Like-for-like sales increased by 0.7%; reported sales declined by −1.6% to €36.5 billion (in local currency: 0.7%)
  • excluding earnings contributions from real estate transactions amounted to €1,396 million (2016/17: €1,436 million); reported EBITDA reached €1,525 million (2016/17: €1,611 million)
  • Profit or loss for the period amounted to €348 million (2016/17: €345 million)
  • : €0.95 (2016/17: €0.89)

Financial and asset position

  • remained at the ’s level of €3,2 billion € (30.9.2017: €3,1 billion)
  • Investments amounted to €0.8 billion (2016/17: €0.8 billion)
  • Cash flow from operating activities reached €0.9 billion (2016/17: €1.0 billion)
  • Total assets amounted to €15.2 billion (30/9/2017: €15.8 billion)
  • Equity: €3.1 billion (30/9/2017: €3.2 billion); equity ratio: 20.5% (30/9/2017: 20.3%)
  • Long-term : BBB– (Standard & Poor’s)

Outlook of METRO

The outlook is based on the assumptions of stable exchange rates and no further adjustments to the portfolio and is given only for the continued operations of METRO. Our reporting also assumes a continuously complex geopolitical situation.

Sales

Despite the persistently challenging economic environment in particular in Russia, METRO expects to see an increase in overall sales in the range of 1–3% for financial year 2018/19, mainly driven by Eastern Europe (excluding Russia) and Asia. For Russia, a measurable trend improvement is expected.

METRO equally expects an increase in like-for-like sales in the range of 1–3% in financial year 2018/19, also mainly driven by Eastern Europe (excluding Russia) and Asia. For Russia, a measurable trend improvement is expected.

Earnings

EBITDA excluding earnings contributions from real estate transactions is expected to decrease by around 2–6% compared to financial year 2017/18 (€1,242 million), particularly driven by an expected double-digit percentage decrease in the segment Others (2017/18: €−129 million) as well as by an expected mid- to high-single-digit percentage decrease in the segment Russia. For all other segments an around previous-year level is expected.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation)
Profit or loss before interest result, income taxes, depreciation/amortisation/impairment losses/reversals of impairment losses on property, plant and equipment, intangible assets and investment properties. This key figure serves the purpose of comparing companies with accounting systems that follow different accounting rules.
Glossary
EPS (Earnings per Share)
See earnings per share
Glossary
Net debt
The net debt results from the balance of the financial liabilities (including liabilities from finance leases), cash and cash equivalents less financial investments. Financial investments include short-term bank deposits and short-term liquid debt instruments.
Glossary
Previous year
Period of 12 months, usually cited as reference for statements in an annual report.
Glossary
Rating
In the financial sector, ratings represent the systematic, qualitative assessment of creditworthiness. Ratings are expressed in various grades of creditworthiness. Renowned agencies that issue ratings are Standard & Poor’s, Moody’s and Fitch.
Glossary
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation)
Profit or loss before interest result, income taxes, depreciation/amortisation/impairment losses/reversals of impairment losses on property, plant and equipment, intangible assets and investment properties. This key figure serves the purpose of comparing companies with accounting systems that follow different accounting rules.
Glossary