Metro AG has raised its outlook for sales and EBITDA for the financial year 2021/22, following what it said was a 'better than expected' Q3 performance.
The wholesale and cash and carry group said that sales in the third quarter were driven by rising inflation, a 'strong' momentum in its HoReCa business, and positive effects from its sCore growth strategy.
Metro said that it now expects sales to grow by around 17% to 22% compared to the previous year, up from a 9% to 15% forecast issued previously.
It added that the outlook assumes that exchange rates remain stable and there are no further adjustments to its portfolio. Also, it noted that further escalation of the war in Ukraine could lead to an additional negative impact on the business.
Strong Growth In 'West' And 'East' Segments
Metro's 'West' and 'East' segments are forecast to grow 'over-proportionately' in the remainder of the year, while Germany and Russia are expected to come in at below the group average.
For the first nine months of the year, Metro reported sales growth of 24% at constant currency levels (preliminary, unaudited), however exchange rate volatility with regard to Russia is having a negative effect on its performance – approximately a €300 million negative non-cash impact in the third quarter alone, it said.
In the second quarter, Metro said that the Ukraine war 'severely impacted' its profits.
Metro will announce its third quarter results on 10 August.