Sales and earnings development of the segments

In Germany, sales in local currency increased by 6.1% in financial year 2021/22. The continued good performance of Rungis Express, the good performance of the HoReCa business and support from inflation contributed significantly to this growth. The HoReCa business outperformed the market again. Reported sales increased by 6.2% to €4.7 billion.

Sales in local currency and reported in the segment West increased significantly by 28.3% to €12.0 billion in financial year 2021/22. All countries except Belgium contributed with a double-digit growth. The largest increases in sales were achieved in France, Italy and Spain with growth rates of over 30%. Due to the sale of the Belgian business on 15 June 2022, Belgium recorded a negative sales growth for the full year. Positive development was achieved in all customer groups of the segment West – with the strongest growth in the HoReCa business. The missing sales of the Belgian business were partly compensated by the first-time consolidation of the AGM stores in Austria as of 2 May 2022. The HoReCa business in France, Spain and Italy outperformed the market again.

In Russia, sales in local currency increased by 7.9% in financial year 2021/22. Sales growth was driven by all customer groups, especially by the FSD business. However, Russia’s war in Ukraine and the related sanctions impacted business development, which increasingly led to a decline in volumes during the financial year and was attributable to poorer product availability. Reported sales were supported by positive currency effects and increased by 22.3% to €2.9 billion.

In the segment East, sales in local currency increased by 22.4%. Almost all countries contributed to this growth, driven primarily by the clearly positive development of the HoReCa business. The largest increase in sales was recorded in Turkey. This was strongly supported by inflation and increased due to the effects from the application of hyperinflationary accounting; the development of the Turkish currency had the opposite effect here. In Ukraine, sales developed negatively due to the war and declined by 10.4% overall. Reported sales in the segment East increased by 17.1% to €10.0 billion.

In the segment Others, sales increased by €72 million to €122 million (2020/21: €49 million) and includes METRO MARKETS sales of €69 million (2020/21: €33 million). This increase is attributable to the strong growth of the marketplace in Germany and Spain as well as the expansion in Italy. Furthermore, Eijsink sales have been contributing positively to sales since 31 March 2022.

In Germany, the adjusted EBITDA in financial year 2021/22 increased to €167 million (2020/21: €149 million). The increase is particularly attributable to the strong sales development compared to the same period of the previous year. The stringent cost management initiated in the previous year as well as a cost optimisation in connection with the grown FSD business also had a positive impact. On the other hand, expenses for additional projects to implement the sCore strategy burdened the result in the low double-digit million euros range.

In the segment West, the adjusted EBITDA increased to €576 million in financial year 2021/22 (2020/21: €394 million), marking a significant improvement compared to the previous year. The increase is particularly attributable to the strong sales development compared to the same period of the previous year. The biggest drivers were France, Spain and Italy. Transformation costs of €125 million (2020/21: €0 million) were incurred as part of the sale of the Belgian business. EBITDA increased to €453 million (2020/21: €412 million).

The adjusted EBITDA in Russia amounted to €231 million in financial year 2021/22 (2020/21: €197 million). In the first half of the financial year, adjusted EBITDA developed positively due to the strong operating performance. In the second half of the year, consumer behaviour and product availability deteriorated, which was also reflected in the EBITDA development. Adjusted for currency effects, EBITDA increased by €8 million.

In the segment East, the adjusted EBITDA in financial year 2021/22 increased to €417 million (2020/21: €373 million). The increase is attributable to the strong sales development. In Ukraine, this was counteracted by a decline in earnings due to lower sales and war-related inventory depreciation of around €15 million. Adjusted for currency effects, EBITDA in the segment East increased by €64 million. The earnings contributions from real estate transactions amounted to €132 million (2020/21: €0 million) and resulted primarily from the sale of the remaining real estate portfolio in Japan after the market exit. The EBITDA increased to €548 million (2020/21: €328 million).

The adjusted EBITDA in the segment Others amounted to €−1 million in financial year 2021/22 (2020/21: €59 million). Effects from the reassessment of transaction-related provisions amounting to a low double-digit million euros sum had a positive impact in financial year 2021/22 as well as in the previous year, whereby the current year was more strongly supported. While previous year’s figure was positively influenced by another €20 million in addition to the aforementioned effects, adjusted EBITDA in financial year 2021/22 was burdened by the redemption of existing pension obligations in the amount of around €20 million and a programme to focus the real estate unit on the wholesale business in the low double-digit million euros range. Compared to the previous year, adjusted EBITDA also benefited from the licensing income from the partnership with Wumei, which will continue to accrue until April 2023. In addition, further investments in digitalisation were made in the current year (roll-out of METRO MARKETS and Eijsink). Earnings contributions from real estate transactions amounted to €3 million (2020/21: €42 million). EBITDA reached €5 million (2020/21: €91 million).