Real

The segment Real is a leading German operator of food hypermarkets with currently 279 outlets. These hypermarkets are characterised by a large product range of up to 80,000 individual products – including many high-quality, fresh-food products and an attractive range of non-food products. In addition to its store-based retail operations, Real also pursues online sales. Real.de offers customers a selection of more than 12 million products.

Real’s like-for-like sales declined by 1.7% in financial year 2017/18. This decline is in particular attributable to persistent warm weather and a temporarily limited availability of goods in the second half of the year. Reported sales decreased by 2.3% to €7 billion due to 3 market closures, some of which were temporary.

Online sales continued to develop very positively. In financial year 2017/18, they increased by around 35% and achieved a share of sales of approximately 2%.

The excluding earnings contributions from real estate transactions reached a total of €143 million in financial year 2017/18 (2016/17: €154 million). The included restructuring expenses of €60 million. The result was negatively affected in the amount of around €50 million by the termination of the future collective agreement that took place in the current financial year. Earnings contributions from real estate transactions amounted to €12 million (2016/17: €6 million). EBITDA amounted to €155 million (2016/17: €159 million).

As part of the required annual impairment test, goodwill of €64 million attributed to Real was written down in full. This is the primary reason for the considerable increase in impairment losses compared to the previous year.

As of 30 September 2018, the store network spanned 279 individual stores (2016/17: 282 stores), 3 less than on the reporting date in the previous year (of which 2 were temporary closures due to renovation work).

Real1 key figures I for 2017/18 in year-on-year comparison

 

 

 

 

 

Change in % compared with the previous year’s period

 

 

Sales (€ million)

 

in group currency (€)

Currency effects in percentage points

in local currency

Like-for-like sales in local currency

 

 

2016/17

2017/18

 

1

Primarily includes discontinued operations.

Sales

 

7,247

7,077

 

−2.3%

0.0

−2.3%

−1.7%

Locations (number)

 

282

279

 

Selling space (1,000 m2)

 

1,941

1,919

 

Real1 key figures II for 2017/18

 

 

EBITDA
excluding earnings contributions from real estate transactions

 

Earnings contributions from real estate transactions

 

EBITDA

 

EBIT

 

Investments

€ million

 

2016/17

2017/18

Change (€)

 

2016/17

2017/18

 

2016/17

2017/18

 

2016/17

2017/18

 

2016/17

2017/18

1

Primarily includes discontinued operations.

Real

 

154

143

−11

 

6

12

 

159

155

 

19

−76

 

131

209

Retail
The Real sales line of METRO AG operates in the food retail sector and is a leading hypermarket operator in Germany with 279 stores.
Glossary
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation)
Profit or loss before interest result, income taxes, depreciation/amortisation/impairment losses/reversals of impairment losses on property, plant and equipment, intangible assets and investment properties. This key figure serves the purpose of comparing companies with accounting systems that follow different accounting rules.
Glossary
Previous year
Period of 12 months, usually cited as reference for statements in an annual report.
Glossary