Metro Cash & Carry

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Adjusted for currency effects, sales at Metro Cash & Carry declined by 2.1% from January to September 2009. In an overall challenging macroeconomic environment, customers fell back on low-priced private labels. Moreover, sales were impaired by declining positive price effects and significantly negative currency developments. Thus, sales decreased by 7.2% to €22.2 billion.

The sales development in Q3, with the exception of Western Europe, showed no trend improvement. The development in non-food sales, especially in Eastern Europe, continued to reflect the general pressure on consumer spending.

From January to September 2009, sales in Germany declined by 3.8% to €3.9 billion. Like-for-like sales also decreased significantly. Food sales suffered from declining price effects and an increasing share of low-priced private labels. Furthermore, the decline in the development of the hotel and restaurant sector has had a negative impact on the sales performance. Also, demand for non-food decreased. Q3 showed no trend improvement and sales declined against a high prior-year basis.

Sales in Western Europe from January to September 2009 fell by 4.1% to €8.7 billion. Adjusted for currency effects, sales only declined by 3.1%. Also here, the business development was affected by declining positive price effects and the general pressure on consumer spending in non-food. Q3 thereby showed a better development than H1 2009.

From January to September 2009, currency-adjusted sales in Eastern Europe decreased slightly by 0.8%. However, distinctly negative currency effects led to a sales decline of 14.7% to €7.9 billion. In like-for-like terms, sales declined by 5.1%. Whilst food sales showed a largely robust development, non-food sales were mainly responsible for the declining development since the beginning of the year. This development continued in Q3 at a higher pace. The two highest revenue countries, Russia and Poland, reported, also in Q3, a solid sales development in local currency.

Sales in Asia/Africa from January to September 2009 grew by 12.4% to €1.6 billion. In local currency, sales grew by 2.0%. Also in Q3, all Asian countries showed sales growth and thus the positive trend seen in H1 2009 continued.

From January to September 2009, the international share of sales declined from 83.0% to 82.3%.

In light of the strong international presence of Metro Cash & Carry, especially in Eastern Europe, earnings were significantly burdened by currency effects. From January to September 2009, EBITDA reached €559 million (9M 2008: €724 million). Included therein are expenses resulting from Shape 2012 amounting to €48 million for the first optimisation measures, predominantly in Germany and United Kingdom. Adjusted for these special items, EBITDA declined to €607 million. EBIT was €363 million (9M 2008: €517 million). Before special items, EBIT reached €416 million (9M 2008: €517 million). Following Q1’s decline in EBIT before special items of €59 million and €31 million in Q2, the decline in Q3 merely amounted to €11 million. Therewith, earnings in Q3 showed a much better development than in H1 2009. Here the first positive effects from the Shape programme are also responsible for this development and partly compensated the sales-related earnings decline.

From January to September 2009, capex for the expansion and the modernisation amounted to €77 million (9M 2008: €161 million). Included therein is the capex for the market entry into Kazakhstan. The store network was enlarged by nine stores, thereof three in Pakistan and two stores each in Ukraine and Russia. In Japan and Vietnam, one store each was opened. In United Kingdom, three unprofitable stores were closed down within the scope of Shape 2012.

At the end of Q3, Metro Cash & Carry operates in 29 countries with 661 stores, thereof 126 in Germany, 259 in Western Europe, 206 in Eastern Europe and 70 in Asia/Africa.

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