Improved sales trend at MediaMarktSaturn and METRO Cash & Carry
- Changes in the presentation of key financials as a result of the annual general meeting having approved the demerger of METRO GROUP1
- Slightly positive development of like-for-like sales of the continuing operations (future CECONOMY): Q2 2016/17 +0.3 %, H1 +0.1 %; reported sales at previous year’s level
- EBIT before special items for the continuing operations below last year’s figures: Q2 -€19 million (Q2 2015/16: €38 million), H1 €289 million (H1 2015/16: €342 million)
- Decline in like-for-like sales of discontinued operations (future METRO): Q2 -1.1 %, H1 -0.4 %; significant increase in reported sales: Q2 +2.4 %, H1 +0.5 %
- Improvement of comparable EBIT before special items (after renewed depreciation/amortisation in accordance with IFRS 5) of discontinued operations due to real estate income and positive currency effects: Q2 €90 million (Q2 2015/16: -€27 million), H1 €603 million (H1 2015/16: €496 million)
In the 2nd quarter and the 1st half of financial year 2016/17, METRO GROUP has seen a continued trend improvement in the sales performance of MediaMarktSaturn and METRO Cash & Carry. Like-for-like sales of the continuing operations increased by 0.3 % in the 2nd quarter 2016/17. MediaMarktSaturn in Germany, in particular, showed a strong performance with a growth in like-for-like sales of 3.4 %. Online sales of the sales brands MediaMarkt and Saturn continued to develop positively across all countries and grew by more than 40%, reaching a share of almost 12% of total sales. EBIT before special items of the continuing operations was impacted in the 2nd quarter by a high comparison base and by investment in the transformation, such as IT and CRM. In addition, earnings were reduced by investments in start-up activities, such as the Retail Media Group and Deutsche Technikberatung, and measures to strengthen the market position in various countries. Accordingly, as a result of investing in the restructuring of the group of companies, EBIT before special items fell to -€19 million in the 2nd quarter from €38 million in the previous year.
Like-for-like sales of the discontinued operations decreased by 1.1% in the 2nd quarter. This was also due to the negative calendar effects, especially for Real. Reported sales of METRO Cash & Carry showed a significant increase of 5.4 %, which was also partly due to the acquisition of Pro à Pro. This contributed to the increase of more than 30 % in delivery sales of the sales line to a record high of 16.1 % of total sales. EBIT before special items of the discontinued operations improved significantly to €90 million compared to -€27 million in the same quarter last year in particular due to real estate income and positive currency effects.
For the 1st half of 2016/17, like-for-like sales of the continuing operations grew slightly by 0.1 %. EBIT before special items amounted to €289 million compared to €342 million in the previous year. Like-for-like sales of the discontinued operations were down by 0.4 %. EBIT before special items increased from €496 million in the previous year to €603 million.
“In the 2nd quarter of financial year 2016/17, the positive trend in terms of the sales performance of METRO Cash & Carry and MediaMarktSaturn continued. The transformation of METRO GROUP towards a customer-centric company is progressing further. With the delivery business, we have reached a new record regarding the share of total sales of METRO Cash & Carry. We have also seen strong growth in online sales,” says Olaf Koch, Chairman of the Management Board of METRO AG. “We are on the home straight of the demerger of METRO GROUP into two strong, successful and strategically focused companies.”
Pieter Haas, member of the Management Board of METRO AG and designated CEO of the future CECONOMY AG, says: “We will continue to pursue our strategy focusing on multi-channel and service. With our core business of MediaMarktSaturn, we further increased our like-for-like sales in the 2nd quarter as well as the total market share in the 1st half of the year and once again improved online sales of the sales brands MediaMarkt and Saturn by more than 40% to currently nearly 12% of total sales.”