Retail

Wholesaler Metro AG Reports 'Record' Sales Growth In Full Year

By Steve Wynne-Jones
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Wholesale giant Metro AG has reported what it described as 'record sales growth' in its 2021/22 financial year, with sales rising more than 20% in local currency.

The group, which has positioned itself as a multichannel operator in recent years, said that its store-based business was up 13.3% to €23.3 billion and delivery sales rose 53.4% to €6.4 billion.

Elsewhere, its burgeoning Metro Markets B2B commerce business, saw sales more than double to reach €69 million, up from €33 million last year.

The group said that its full-year performance was driven by the 'consistent implementation' of its new sCore growth strategy, supported by rising inflation.

For the full year, adjusted EBITDA rose to €1.39 billion, with sales and EBITDA reaching the upper half of its previous outlook. Metro raised its outlook twice over the course of the year.

'Visible Successes'

“In the first year of our sCore growth strategy, we have achieved visible successes despite a challenging environment," commented Dr Steffen Greubel, CEO of Metro AG.

"All our channels and segments are growing, we are expanding our core business and our strategic customer share consistently and we are winning market shares."

At the same time, the financial year was also impacted by a number of negative effects, including rising cost inflation, the war in Ukraine (and associated impairments) and Russian currency effects.

During the financial year, Metro AG undertook three strategic acquisitions, of AGM, Eijsink and Günther-Gruppe, as well as recently completing the sale of its business in Belgium.

Read More: Dutch Wholesaler Sligro Acquires Metro Activities In Belgium

2022/23 Forecast

Looking ahead, the German cash and carry operator said that it expects sales growth of 5% to 10% over the coming year, although EBITDA is likely to slip back to between €75 million and €225 million, due to cost increases related to inflation.

"Growth remains our focus for the coming year," Greubel added. "Precisely in times of high inflation and volatility, the benefits of our multichannel business model become apparent – attractive prices in the wholesale stores, need-based delivery, a broad online range and personal customer service by a growing sales force.

"This is why we expect significant sales growth for the coming year, too."


© 2022 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

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