Overview of group business development

In financial year 2018/19, METRO’s like-for-like sales rose by 2.1%. The growth was particularly pronounced in Eastern Europe (excluding Russia), Western Europe (excluding Germany) and Asia. Sales in local currency grew by 2.2%. Due to adverse exchange rate developments in Eastern Europe, Russia and Asia, reported sales increased by only 1.1% to €27.1 billion.

The earnings before depreciation and amortisation (EBITDA) excluding earnings contributions from real estate transactions of METRO totalled €1,021 million in financial year 2018/19 (2017/18: €1,088 million). The exchange rate developments of primarily the Turkish and Russian currencies had a negative impact on earnings. Adjusted for currency effects, the decrease was €−49 million less than in the previous year. As expected, the ongoing repositioning of the Russian business and increased costs for digitalisation/IT had a negative impact on earnings. The positive earnings development in Western Europe (excluding Germany), Germany and Asia had a compensating effect. Earnings contributions from real estate transactions totalled €338 million (2017/18: €128 million). EBITDA reached €1,359 million (2017/18: €1,216 million).

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€ million

2017/18¹

2018/19

Change

¹	Adjusted for effects of the discontinued operations.

Sales

26,792

27,082

1.1%

EBITDA excluding earnings contributions from real estate transactions

1,088

1,021

−6.1%

Earnings contributions from real estate transactions

128

338

–

EBITDA

1,216

1,359

11.8%

EBIT

713

828

16.1%

Investments

565

499

−11.7%

Stores

675

678

0.4%

Selling space (1,000 m²)

4,665

4,728

1.3%

The reconciliation from sales to like-for-like sales in local currency is shown in the following:

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Continuing operations

€ million

2017/18

2018/19

Change

¹	Sales in local currency of the previous year were calculated by converting reported sales of the previous year at the average exchange rate of the current financial year.
²	Not included in the like-for-like panel are, among others, new openings, stores in start-up phase, closures, service companies and major refurbishments.

Total sales

26,792

27,082

1.1%

Total sales in local currency¹

26,504

27,082

2.2%

Sales of stores that were not part of the
like-for-like panel in 2018/19²

197

224

Like-for-like sales in local currency

26,307

26,858

2.1%

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

Currency effects

Currency effects result from situations where the same amount of currency units is translated into another currency at differing exchange rates.

Glossary

Previous year

Period of 12 months, usually cited as reference for statements in an annual report.

Glossary