Overview of group business development

The consistent implementation of the sCore strategy led to significant growth at METRO in financial year 2021/22, supported by a combination of rising inflation and strong momentum in the strategic customer segment. The company clearly exceeded pre-pandemic levels. It achieved high single-digit volume growth compared to the previous year, leading to further market share gains. All 3 channels (store-based business, delivery and METRO MARKETS) contributed to growth. The business developed better than expected throughout the year, which is why the Management Board raised the sales and earnings outlook for financial year 2021/22 twice.

Nevertheless, financial year 2021/22 was also influenced by various external factors. In addition to the support from inflation, the Russian war in Ukraine and the associated impairments as well as currency effects of the Russian currency had a negative impact on the annual result. The business development was also affected by portfolio decisions. There were 3 strategic acquisitions (C & C Abholgroßmärkte Gesellschaft m.b.H. [AGM]: store-based and delivery business in Austria; Eijsink: point-of-sale solutions for the hospitality industry; Günther Group: company specialising in professional kitchens) and one sale (operational business in Belgium).

In financial year 2021/22, sales in local currency increased by 20.4%. All segments contributed to this growth. High single-digit volume growth was achieved. Reported sales grew by 20.1% to €29.8 billion; negative currency effects in Turkey were largely offset by positive currency effects in Russia and other countries.

The adjusted EBITDA reached a total of €1,389 million in financial year 2021/22 (2020/21: €1,171 million) and thus returned to pre-pandemic levels¹. Adjusted for currency effects, pre-pandemic levels were exceeded. The increase is particularly attributable to the strong sales development. The segments West and East contributed disproportionately to this positive development. However, expenses for further projects to implement the sCore strategy, which were mainly incurred in the Germany as well as the West and segment Others, had a negative impact on earnings. Adjusted for currency effects, EBITDA increased by €214 million compared to the same period of the previous year. Negative currency effects from the Turkish currency were overcompensated by positive exchange rate effects from Russia and other countries. Transformation costs of €123 million were incurred in financial year 2021/22 (2020/21: €65 million), mainly from the sale of the Belgian operational business.

The earnings contributions from real estate transactions amounted to €137 million (2020/21: €60 million) and resulted mainly from the sale of the remaining real estate portfolio in Japan after the market exit. The EBITDA reached a total of €1,403 million (2020/21: €1,166 million).

In financial year 2021/22, METRO made good progress with the implementation of the strategy in the countries. This is also reflected in the strategic KPIs that METRO uses to implement the sCore strategy. Strategic customer sales share increased to 71% (2020/21: 66%), own brands sales share increased to 19% (2020/21: 17%), and stock availability increased slightly to 95% (2020/21: 95%). METRO’s FSD sales increased by 53.4% to €6.4 billion in financial year 2021/22 (2020/21: €4.2 billion), reaching a record sales share of 21% (2020/21: 17%); digital sales share increased to 9% (2020/21: 6%).

As of 30 September 2022, the store network comprised 661 stores, of which 567 were out-of-store (OOS) locations², and 64 depots.

• Detailed information on the store network can be found in chapter 2.1 – business model of the group.