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METRO’s growth in the fourth quarter of 2022/23

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METRO’s growth in the fourth quarter of 2022/23

METRO’s growth in the fourth quarter of 2022/23 was impressive, with a 7.9% increase in sales when adjusted for currency and portfolio effects. Sales in local currency also saw a substantial growth of 5.4%. This positive sales development was attributed to the consistent implementation of the sCore strategy and was observed in all segments, particularly in East and West.

METRO’s delivery business and online marketplace, METRO MARKETS, also achieved notable growth compared to the previous year. For the full financial year 2022/23, this translates to an 8.8% sales growth, according to the guidance view. It’s expected that EBITDA will fall in the lower half of the guidance range due to rising cybersecurity costs and insurance compensation in the mid double-digit million euros range, which couldn’t fully offset the loss in EBITDA resulting from the cyberattack in Q1 2022/23, which amounted to the mid to high double-digit million euros range.

Dr. Steffen Greubel, CEO of METRO AG, stated, “In spite of a strong previous-year quarter and conditions which remained challenging, METRO was able to continue its growth trajectory in the 4th quarter of 2022/23. At the same time, we are concluding the financial year with a sales growth of 8.8%.

This demonstrates that the consistent focus on the implementation of the sCore strategy is paying off, and we are making clear progress towards strengthening delivery, online business, and the optimization of the wholesale approach for our stores. At the same time, we are laying the proper groundwork for the future with sCore and our multichannel strategy. The outlook for the next financial year remains challenging. Taking into account our continued growth in the previous financial year, we are well positioned to achieve our 2030 ambition.”

Sales growth was observed in all segments in Q4 2022/23. Despite a challenging comparison basis and the absence of sales from the sale of the Indian business, METRO achieved a 5.4% growth in sales in local currency.

All segments contributed to this growth, with East and West showing significant increases of 10.3% and 3.8%, respectively. Sales in Germany also increased slightly by 0.8%, and for the first time in the financial year 2022/23, Russia achieved positive growth of 1.3%. The growth was further supported by various delivery specialists and the expansion of the online marketplace METRO MARKETS. However, due to negative exchange rate developments in Türkiye and Russia, reported sales declined by 1.1% to €7.9 billion.

Throughout the financial year 2022/23, the consistent implementation of the sCore growth strategy led to a 5.6% growth in sales in local currency, aligning with the guidance view of 8.8%. This growth was achieved despite the sales loss during the cyberattack in Q1 2022/23, which amounted to a low three-digit million euros range.

The sales development was in the upper half of the guidance range of 5% to 10%, with all segments, except Russia, contributing to the growth across various sales channels.

METRO sales figures in the fourth quarter of 2022/23 and for the full financial year 2022/23 are detailed in the provided tables.

A disclaimer at the end of the report highlights that the figures are preliminary and unaudited, and forward-looking statements are subject to risks and uncertainties. METRO’s ability to achieve its financial projections depends on various factors, including market conditions, economic developments, and legislative and political decisions.

METRO is a prominent international food wholesaler serving the needs of hotels, restaurants, caterers (HoReCa), and independent merchants (Traders). METRO has approximately 17 million customers globally, benefiting from a unique multichannel approach that allows for in-store purchases and digital-supported delivery (Food Service Distribution, FSD).

The company is also expanding its international online marketplace, METRO MARKETS, to serve professional customers. Sustainability is a core principle for METRO, and the company has been recognized in sustainability indices and rankings.

METRO operates in over 30 countries and employs more than 93,000 people worldwide. In the financial year 2021/22, METRO generated sales of €29.8 billion. Additional information can be found at MPULSE.de, their online magazine.

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