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 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 customer groups. Due to negative , 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).

METRO key sales figures 2020/21 In year-on-year comparison

 

Sales (in € million)

Change in %
compared with the previous year’s period

 

2019/20

2020/21

in group currency (€)

Currency effects in percentage points

in local currency

like-for-like sales
(in local currency)

METRO

25,632

24,765

−3.4%

−3.4%

0.0%

−0.4%

Germany

4,699

4,457

−5.2%

0.0%

−5.2%

−4.8%

Western Europe (excl. Germany)

9,603

9,384

−2.3%

0.0%

−2.3%

−3.2%

Russia

2,644

2,374

−10.2%

−13.5%

3.3%

3.6%

Eastern Europe (excl. Russia)

7,125

7,004

−1.7%

−6.2%

4.5%

4.5%

Asia

1,539

1,496

−2.8%

−6.2%

3.3%

1.4%

Others

22

49

In Germany, adjusted 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 ’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 , 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 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. 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.

 

Adjusted EBITDA

Transformation costs

Earnings contributions from real estate transactions

EBITDA

€ million

2019/20

2020/21

Change (€)

2019/20

2020/21

2019/20

2020/21

2019/20

2020/21

Total

1,158

1,171

13

47

65

3

60

1,113

1,166

Germany

125

149

23

0

10

0

0

125

138

Western Europe (excl. Germany)

394

394

0

0

0

1

18

395

412

Russia

224

197

−27

0

0

0

0

224

197

Eastern Europe (excl. Russia)

371

366

−5

0

0

2

0

373

366

Asia

0

7

7

0

45

0

0

0

−38

Others

42

59

17

47

10

0

42

−5

91

Consolidation

1

−1

−2

0

0

0

0

1

−1

HoReCa
Short for hotel, restaurant and catering businesses. The HoReCa segment is an important customer group for METRO.
Glossary
Traders
The term ‘Traders’ at METRO refers to the customer group of independent resellers such as operators of small grocery stores and kiosks.
Glossary
Currency effects
Currency effects arise when the same number of currency units is converted into another currency at different exchange rates.
Glossary
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation)
Profit or loss before financial 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
Previous year
Period of 12 months that is usually cited as a reference for statements in the annual report and refers to the financial year preceding the reporting year.
Glossary
Currency effects
Currency effects arise when the same number of currency units is converted into another currency at different exchange rates.
Glossary
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation)
Profit or loss before financial 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
Transformation costs
Non-recurring expenses related to the focus on the wholesale business and the restructuring measures resulting from this realignment as well as with the closure of individual national subsidiaries. Such expenses are presented separately in the financial reporting as transformation costs.
Glossary