Sales and earnings development of the segments

In Germany, like-for-like sales declined by −0.8% in financial year 2019/20, thus remaining almost at the level of the previous year. Reported sales declined by −0.8%. Sales developed differently over the 4 quarters. In the first half of the year, sales developed positively and were above previous year's level, partly supported by stock up purchases at the beginning of the pandemic. In the course of the government-imposed restrictions, sales declined significantly in the Q3. The gradual re-opening of the hospitality industry and tourism business initiated a continuous, strong trend improvement, which points to market share gains. In Q4, positive like-for-like sales growth was thus already achieved again.

Like-for-like sales in Western Europe (excluding Germany) declined significantly in financial year 2019/20 due to the impact of the Covid-19 pandemic by −10.6%. Reported sales dropped by −10.7% to €9.7 billion. After Q1 started out at previous year’s level, the effects of temporary restaurant closures due to the Covid-19 pandemic became clearly noticeable in the course of the financial year, particularly in France, Italy, Spain and at Pro à Pro. However, in Q4 the sales trend already improved significantly compared to Q3 2019/20, with clear signs of market share gains in France, Italy and Spain.

In Russia, like-for-like sales in financial year 2019/20 were clearly positive with an increase of 3.8%. This development is attributable to the strategic repositioning measures already initiated in the previous year as well as stock up purchases related to the Covid-19 pandemic. Increased demand from Traders and SCO customer groups, the expansion of the Fasol trader franchise business and the growing e-commerce business were positive drivers. Sales in local currency increased by 4.2% and have remained continuously above the level of the previous year since the beginning of calendar year 2020. As a result of negative currency effects, reported sales decreased by −0.7%.

In Eastern Europe (excluding Russia), like-for-like sales in the financial year increased by 2.2%. In most countries, government restrictions on HoReCa customers had a negative impact, with the Traders and SCO business exerting a supportive effect. The sales increase was predominantly attributable to the performance in Ukraine, Turkey and Romania. In local currency, sales also increased by 2.2%. Due to negative currency effects, especially in Turkey, reported sales decreased by −0.9% only. In the course of financial year 2019/20, Eastern Europe achieved a consistently positive like-for-like sales development, with the exception of Q3.

Like-for-like sales in Asia decreased significantly by −7.0% in financial year 2019/20. This is mainly due to the sales development in Classic Fine Foods, in Japan and in India as a consequence of the Covid-19 pandemic. However, Q4 showed an improvement in the trend compared to Q3. Sales in local currency for the financial year declined by −6.7%. As a result of negative currency effect developments, the reported sales decreased by −9.3%.

In financial year 2019/20, METRO’s delivery sales dropped significantly by −14.3% to approximately €3.9 billion (2018/19: €4.6 billion) and achieved a sales share of 15% (2018/19: 17%). The delivery business also recovered towards the end of the financial year, albeit slightly delayed in comparison to the store-based business due to the current customer preference for greater purchasing flexibility provided by the store-based business.

As of 30 September 2020, the store network comprised 678 stores (1 new opening in Ukraine and 1 closure in Russia).

In Germany adjusted EBITDA reached a total of €125 million in financial year 2019/20 (2018/19: €128 million). In this segment, the strong sales development in H1 of 2019/20 had a positive effect and managed to largely compensate for the Covid-19-related declining sales development in Q3 2019/20. METRO Germany performed significantly better overall than Rungis Express, where government restrictions had a significantly more negative impact due to the strong focus on hospitality industry customers.

In Western Europe (excluding Germany) the adjusted EBITDA declined to €394 million in financial year 2019/20 (2018/19: €636 million). This significant decline is mainly a consequence of the Covid-19-related government restrictions on the hospitality and tourism industry. In particular in France, Italy, Spain and Pro à Pro, they had a significant negative impact on sales development in the context of the Covid-19 pandemic.

The adjusted EBITDA in Russia amounted to €224 million in financial year 2019/20 (2018/19: €235 million). Adjusted for currency effects, EBITDA was at the same level as last year, with an attractive pricing model contributing to sustained sales growth and stable earnings.

In Eastern Europe (excluding Russia) the adjusted EBITDA reached a total of €371 million in financial year 2019/20 (2018/19: €385 million). Among other things, this decline is due, to the negative currency development in Turkey and general cost developments in the region. Adjusted for currency effects, EBITDA adjusted in Eastern Europe (excluding Russia) dropped by €−1 million.

The adjusted EBITDA in Asia reached a total of €0 million in financial year 2019/20 (2018/19: €43 million). This is particularly a result of the development of Classic Fine Foods due to unstable political conditions and regulatory restrictions related to the Covid-19 pandemic. In India and Japan, the Covid-19 related government measures also had a negative impact on the sales development. Adjusted for currency effects, EBITDA adjusted in Asia dropped by €−40 million.

The adjusted EBITDA in the Others segment amounted to €42 million in financial year 2019/20 (2018/19: €−34 million). The non-recurring income from damages in the low double-digit millions included in the previous year, which was mainly generated in the Others segment, was more than offset by cost savings, including those from the implemented efficiency programme at the headquarters, an improved result in logistics and licensing income from the partnership with Wumei. Furthermore, the negative earnings contributions for the second voluntary takeover bid by EPGC, which were already partially incurred in Q4 of 2019/20, are lower than in the previous year.