The outlook is based on the assumption of stable exchange rates without further adjustments to the portfolio and before transformation costs according to the new definition (transformation costs expected in 2024/25: up to €150 million). The geopolitical situation is expected to remain unchanged. The expectations for the further macroeconomic development are explained in the chapter on macroeconomic parameters. The relevant opportunities and risks that could influence the outlook are explained in the opportunities and risk report.
Sales
The Management Board expects a total sales growth of 3% to 7% (2023/24: 6%, absolute sales of €31 billion)1 for financial year 2024/25. Growth will be driven by all segments. In view of the persistently high volatility, sales in the segment Russia are expected to grow within the guidance range. The segments Germany and West are expected to grow below the guidance range, while growth above the guidance range is likely in the segments East and Others.
Earnings
In addition, the Management Board anticipates a slight increase in adjusted EBITDA (Basis of comparison from 2023/24: €1,100 million, based on €1,058 million241 and additionally transformation costs around €40 million according to the new definition). The sales growth from sCore generally leads to EBITDA growth. However, this will be offset in financial year 2024/25 by persistently high cost inflation. In the segments Germany and Russia, adjusted EBITDA is expected on a level with the previous year. In the segment West, adjusted EBITDA will rise slightly, while the adjusted EBITDA will decrease slightly in the segment Others. In the segment East, adjusted EBITDA will grow moderately.
1 Exchange-rate- and portfolio-adjusted.