Sales and earnings development of the segments

Like-for-like sales of METRO increased by 2.1% in financial year 2018/19. 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 (excluding Russia), Russia and Asia, reported sales increased by only 1.1% to €27.1 billion.

In Germany, like-for-like sales in financial year 2018/19 rose by 0.3%, while reported declined sales by −0.5%, significantly impacted by the first-time application of IFRS 15.

Like-for-like sales in Western Europe (excluding Germany) rose by 1.3% in financial year 2018/19 after a negative development in the previous year. Reported sales increased by 1.3% to €10.8 billion. France, delivery company Pro à Pro, Spain and Portugal particularly contributed to this.

In Russia, the trend improved compared to the previous year, but the market environment remains challenging. Like-for-like sales in financial year 2018/19 declined by −4.3%. In local currency, revenues decreased by −3.3%. As a result of negative currency effects, the reported sales decreased by −5.4%.

In Eastern Europe (excluding Russia), like-for-like sales in financial year 2018/19 were clearly positive with an increase of 6.3%. This is predominantly attributable to the performance in Turkey, Romania and Ukraine. In local currency, sales grew by 6.4%. Due to negative currency effects, especially in Turkey, reported sales increased by 3.4% only.

Like-for-like sales in Asia increased by 5.3% in financial year 2018/19. All countries in this segment (India, Japan, Pakistan) and Classic Fine Foods contributed to this result. Sales in local currency grew by 7.3%. Due to negative currency effects, reported sales increased by only 5.2%.

METRO’s delivery sales developed very dynamically. In financial year 2018/19, sales rose by 9.2% to €4.6 billion (2017/18: €4.2 billion). As a result, delivery business now accounts for 17% (2017/18: 16%) ofsales.

As of 30 September 2019, the store network spans 678 individual stores (30/9/2018: 675 stores). In financial year 2018/19, 3 stores were opened (1 store each in Croatia, Russia and Turkey). In addition, METRO strengthened its reach by further expanding the supply infrastructure.

The EBITDA excluding earnings contributions from real estate transactions reached a total of €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 Germany, Western Europe (excluding Germany), and Asia, had a compensating effect.

Earnings contributions from real estate transactions totalled €338 million (2017/18: €128 million). The increase of €210 million is essentially attributable to the postponement of a transaction in India from financial year 2017/18 to financial year 2018/19 as well as the earlier-than-expected conclusion of a transaction in China. The property in China is not part of the disposal group, so the income remains in continuing operations. Overall, EBITDA rose to €1,359 million (2017/18: €1,216 million).

In Germany, EBITDA excluding earnings contributions from real estate transactions reached €95 million in financial year 2018/19 (2017/18: €91 million).

In Western Europe (excluding Germany) EBITDA excluding earnings contributions from real estate transactions reached a total of €499 million in financial year 2018/19 (2017/18: €491 million). Earnings contributions from real estate transactions totalled €29 million (2017/18: €39 million), resulting especially from a real estate transaction in Spain.

The EBITDA excluding earnings contributions from real estate transactions in Russia amounted to €220 million in financial year 2018/19 (2017/18: €266 million). Adjusted for currency effects, the decline amounts to €−40 million and is mainly sales and margin related.

In Eastern Europe (excluding Russia) EBITDA excluding earnings contributions from real estate transactions reached a total of €344 million in financial year 2018/19 (2017/18: €363 million). Among other things, this decline is due, to the negative currency development in Turkey. Adjusted for currency effects, EBITDA excluding earnings contributions from real estate transactions in Eastern Europe (excluding Russia) fell by €−11 million. The decline in earnings in the Czech Republic was partially offset by the good development in Turkey, Poland and Ukraine. Earnings contributions from real estate transactions in Poland, the Czech Republic and Hungary amounted to €181 million (2017/18: €12 million).

EBITDA excluding earnings contributions from real estate transactions in Asia reached a total of €11 million in financial year 2018/19 (2017/18: €9 million). Earnings contributions from real estate transactions in China and India amounted to €107 million (2017/18: €8 million).

EBITDA excluding earnings contributions from real estate transactions in the Others segment (including consolidation) amounted to €−148 million in financial year 2018/19 (2017/18: €−132 million). While the cost of digitalisation/IT rose as expected, this profit or loss also includes revenues from damages in the low double-digit millions, which were focused in the Others segment. This was offset by consulting costs of around €20 million in connection with the voluntary takeover bid by EPGC. Earnings contributions from real estate transactions amounted to €21 million (2017/18: €69 million) essentially from the sale of a speciality centre in Germany.