Sales and earnings development of the segments

In Germany sales in local currency in financial year 2020/21 declined by −5.2%. Like-for-like sales decreased by −4.8%. This is mainly attributable to a significant decline in sales to HoReCa customers in the wake of the Covid-19 pandemic, particularly in H1 2020/21. In the course of the gradual reopening of the hospitality industry business, the sales development in the HoReCa segment improved in the second half of the year. However, it could not compensate for the declines in the other customer groups, among others due to the reduction of the tobacco business. Nevertheless, the HoReCa business developed better than the market. Reported sales decreased by −5.2% to €4.5 billion.

In Western Europe (excl. Germany), sales in local currency in financial year 2020/21 declined by −2.3%. Like-for-like sales decreased by −3.2%. In this area, the effects of the Covid-19 pandemic had an impact in the first half of the year. France and Italy were particularly affected by the government-imposed restrictions. In the second half of the year, a rapid and significant recovery of the HoReCa business set in with the gradual reopening of the hospitality and tourism sectors. The biggest drivers were France, Italy and Spain. In those countries, the HoReCa business outperformed the market. In addition, the sales of the delivery companies Aviludo in Portugal and Davigel in Spain contributed positively to the sales development since the initial consolidation. Total sales in Q4 2020/21 already returned to pre-pandemic levels. Reported sales in financial year 2020/21 dropped by −2.3% to €9.4 billion.

In Russia, sales in local currency grew by 3.3% and like-for-like sales by 3.6% in financial year 2020/21. Sales growth was driven by the HoReCa and Traders customer groups. Due to negative currency effects, reported sales decreased by −10.2% to €2.4 billion.

In Eastern Europe (excl. Russia), sales in local currency and like-for-like sales increased by 4.5% in financial year 2020/21. Adjusted for currency effects, Romania, Ukraine and Turkey in particular developed positively. In Poland, the Czech Republic, Hungary and Slovakia, Covid-19-related restrictions had a particularly negative impact. Due to negative currency effects, especially in Turkey and Ukraine, reported sales decreased by −1.7% to €7.0 billion.

Sales in local currency in Asia increased by 3.3% and like-for-like sales by 1.4% in financial year 2020/21. Classic Fine Foods and India in particular benefited from the recovery in the hospitality sector in the second half of the year. Due to negative currency effects, especially in India and Japan, reported sales decreased by −2.8% to €1.5 billion.

In financial year 2020/21, METRO’s delivery sales increased by 5.8% to approximately €4.2 billion (2019/20: €3.9 billion) and achieved a sales share of 17% (2019/20: 15%). As of 30 September 2021, the store network comprised 681 stores (3 new openings in India, 1 new opening in Pakistan and 1 closure in Germany).

In Germany, adjusted EBITDA reached a total of €149 million in financial year 2020/21 (2019/20: €125 million). This was mainly attributable to a good margin development and stringent cost management. 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 (excl. Germany), adjusted EBITDA in financial year 2020/21 stayed at previous year’s level of €394 million (2019/20: €394 million). The earnings development generally followed the slightly negative sales development. The acquisition of Davigel Spain resulted in one-time income in the mid single-digit million euro range with positive offsetting effect as part of the initial consolidation. The earnings contributions from real estate transactions amounted to €18 million (2019/20: €1 million) and resulted mainly from a sale-and-lease-back transaction in Portugal.

Adjusted EBITDA in Russia amounted to €197 million in financial year 2020/21 (2019/20: €224 million). Adjusted for currency effects, EBITDA increased by €2 million.

In Eastern Europe (excl. Russia), adjusted EBITDA reached a total of €366 million in financial year 2020/21 (2019/20: €371 million). This decrease is mainly attributable to negative currency effects in Turkey. Adjusted for currency effects, Romania, Turkey and Ukraine were able to compensate for the declining development in the Czech Republic, Slovakia and Poland. Furthermore, the termination of a legal dispute contributed positively to the earnings development with an amount in the mid single-digit million euro range. Adjusted for currency effects, EBITDA in Eastern Europe (excl. Russia) increased by €18 million.

Adjusted EBITDA in Asia reached a total of €7 million in financial year 2020/21 (2019/20: €0 million). Licensing revenues from the ownership share of the METRO China partnership with Wumei made a positive contribution of a low single-digit million euro amount to the earnings development. Adjusted for currency effects, EBITDA in Asia increased by €6 million. Transformation costs of €45 million (2019/20: €0 million) were incurred due to the country exits from Japan, Myanmar and the Philippines (Classic Fine Foods).

Adjusted EBITDA in the Others segment amounted to €59 million in financial year 2020/21 (2019/20: €42 million). The improvement compared to the previous year is attributable to various sustainable, temporary and one-time effects. Sustainable effects include savings from the restructuring carried out in the previous year, which had a positive impact on personnel expenses. Temporary effects resulted from licensing revenues from the partnership with Wumei (which will continue to contribute to the earnings development until April 2023). Moreover, one-off income of around €30 million contributed to the earnings development. It resulted from the termination of arbitration proceedings, the reassessment of transaction-related provisions and the final purchase price valuation of the METRO China transaction. Earnings contributions from real estate transactions amounted to €42 million (2019/20: €0 million) and resulted mainly from the sale of the last remaining real estate property of the hypermarket business and the disposal of an at-equity investment in a retail store network in Germany.