Wholesaler Metro AG has reported growth in sales for the third consecutive year driven by the implementation of its sCore growth strategy.
Adjusted sales increased by 5.9% in the full financial year 2023/24 with all sales channels contributing to this growth, the company noted.
Metro's store-based business registered sales growth of 2.3% to €22.9 billion, while delivery sales rose by 16.8%, to €7.9 billion, and Metro Markets grew by 49.3%, to €0.2 billion.
Dr Steffen Greubel, CEO of Metro AG, stated, "Three years ago, we set ourselves a consistent growth path with a focus on multichannel wholesale. With this strategy, we have succeeded in achieving sales growth for the third year in a row.
"Despite the difficult geopolitical and economic situation, we grew in the financial year 2023/24 in all channels and regions, adjusted for currency and portfolio effects, and were able to further improve our market position."
Annual Highlights
Metro added that it achieved its full-year outlook with sales in the upper half and adjusted EBITDA in the lower half of its guidance range.
The company's adjusted EBITDA declined by €67, to €1.1 billion, during the financial year, with earnings weighed down by the continuing transformation requirements in the wholesale business and cost pressure, among other factors.
The company had forecast full-year adjusted EBITDA in the range of - €100 million and €50 million.
Outlook
Metro's management board expects a currency and portfolio-adjusted total sales growth of 3% to 7% in its financial year 2024/25.
The company has forecast growth across all business segments, with sales in Russia growing within the guidance range.in
Business units in Germany and the West are expected to grow below the guidance range, while growth above the guidance range is likely in the segments East and Others.
Greubel added, "Metro is finally a growing company again and we are more wholesaler than ever before, as the development of the strategic key performance indicators shows.
"At the same time, EBITDA reflects the result of significantly increased costs and challenging conditions, which is why we will focus even more strongly on productivity and profitability in the future, without losing sight of sustainable growth. I am firmly convinced that with these priorities we will achieve our 2030 ambitions."
Recently, the German wholesaler opened a new 15,000-square-metre distribution centre in VGP Park Belgrade, Dobanovci, in Serbia.
