Comparison of outlook with actual business developments

The comparison of the actual business development with the outlook for financial year 2018/19 relates to the continuing operations of METRO including METRO China. The contract for the sale of the majority share in METRO China was signed on 11 October 2019.

The outlook was based on the assumption of stable exchange rates without adjustments to the portfolio. Our reporting also assumed a continuously complex geopolitical situation.

Despite the persistently challenging economic environment particularly in Russia, METRO expected to see an increase in overall sales in the range of 1% to 3% for financial year 2018/19, to which Eastern Europe (excluding Russia) and Asia in particular were supposed to contribute. With total revenue growth of 2.5% in local currency, METRO met this target. The expected measurable trend improvement in Russia was also achieved.

METRO equally expected an increase in like-for-like sales in the range of 1% to 3% in financial year 2018/19, which was also supposed to be driven by Eastern Europe (excluding Russia) and Asia. With like-for-like sales growth of 2.4%, this target was met as well. The expected measurable trend improvement in Russia could be realised as well. For both sales figures, the segment outlook was also achieved in each case except for the sales trend in the Germany segment, which remained slightly below expectations.

The Management Board of METRO AG expected a slight decline in EBITDA (adjusted for currency effects and excluding earnings contributions from real estate transactions) of around 2% to 6% compared to financial year 2017/18 (€1,242 million). In particular, a decline in the double-digit percentage range was expected in the Others segment (2017/18: €−129 million) and a decline in the mid to high single-digit percentage range in the Russia segment. For all other segments, an EBITDA around previous year’s level was expected. This outlook for the Russia segment was adjusted in the third quarter and a decrease of approximately 15% was expected. The slightly weaker result in Russia should be positively compensated by slightly better results in Western Europe (excluding Germany) and Asia.

Adjusted for negative currency effects of €17 million, METRO’s EBITDA excluding earnings contributions from real estate transactions was €−52 million or −4.2% below the previous year’s figures. With this decrease METRO is in the expected range of the outlook of 2% to 6%. This also applies to the outlook at segment level except for the EBITDA development of the Eastern Europe segment (excluding Russia), which remained slightly below expectations. The Russia segment developed in line with the adjusted expectations.

METRO has thus achieved its sales and earnings targets outlook in the previous year for financial year 2018/19.