German wholesale giant Metro AG has reported sales growth of 7.2% in the second quarter of its financial year, with all business segments and channels contributing to its performance.
The company said it continued to witness a 'positive sales trend' in the quarter despite tense economic and geopolitical situation.
Adjusted EBITDA for the quarter amounted to €73 million, down from €111 million in the same period last year due to the discontinuation of license earnings from WM Holding (HK) Limited and other post-transaction effects.
For the first half, Metro AG reported an 8.2% increase in currency- and portfolio-adjusted sales, while reported total sales rose marginally by 0.1% to €15.0 billion.
Reported total sales were 'heavily impacted' by negative currency effects, especially in Russia and Türkiye, the company noted
The adjusted EBITDA declined to €478 million in this period from €577 million in the first half of the previous financial year.
Dr Steffen Greubel, CEO of Metro AG commented, “We are moving full steam ahead with Metro’s wholesale transformation in all areas. This applies both to expanding our delivery business and sales force as well as to streamlining our assortment and strengthening our digital offerings. This is reflected in positive key figures across all our countries [...].
“We saw solid volume growth in the second quarter of 2023/24 with declining inflation. This shows that we are well on track with implementing our strategy and confident that we will achieve our growth targets for 2030.”
Divisional Performance
In Germany, reported sales in the second quarter grew by 2.0%, while adjusted to a negative €12 million.
In the first half, sales climbed by 2.8% with reported sales amounting to €2.5 billion. Adjusted EBITDA declined to €53 million, impacted by expected cost inflation and continued investments in price positioning.
The company's West segment reported 2.5% growth in sales in the second quarter, while adjusted EBITDA increased to €69 million.
In the first half, sales in the segment increased 4.1% year on year with reported sales amounting to €6.2 billion.
The company attributed this growth to its performance in Spain, France and Italy, as well as its delivery specialists.
Adjusted EBITDA increased to €248 million, driven by strong sales development compared to the same period of the previous year.
In Russia, second-quarter sales in local currency increased 13.4%, while reported sales decreased by 4.6% to €0.5 billion, driven by negative currency effects.
In the first half, sales in local currency rose 16.9% year-on-year, following significant negative effects from cyberattacks in the previous year. The adjusted EBITDA declined to €62 million.
Metro AG's East segment, saw sales growth of 4.1% in local currency in the second quarter, while adjusted EBITDA increased to €55 million.
Sales in local currency in the business unit rose by 4.5% in the first half, driven by the performance in all countries, especially Romania, Ukraine and Czechia.
