Metro (B4B) Q1 2025 earnings summary

Executive summary

• Sales grew 7.1% in local currency in Q1 2024/25, with all segments and channels contributing, especially East, West, and Russia.

• Total sales reached €8.6 billion, up 5.6% year-over-year, despite negative currency effects, mainly in Russia and Türkiye.

• Adjusted EBITDA increased slightly to €412 million, but overall EBITDA declined to €408 million due to lower real estate gains and higher transformation costs.

Financial highlights

• Store-based sales rose 4.5% to €6.4 billion; delivery sales up 15.3% to €2.1 billion; METRO MARKETS sales up 17.1% to €40 million.

• Gross profit increased to €1,429 million from €1,361 million year-over-year.

• Net income attributable to shareholders fell to €75 million from €130 million; EPS dropped to €0.21 from €0.36.

• Free cash flow was negative at -€324 million, compared to €30 million in the prior year.

Outlook and guidance

• Management expects total sales growth of 3% to 7% for FY 2024/25, with all segments contributing.

• Adjusted EBITDA is anticipated to increase slightly, but high cost inflation will offset some gains.

• Russia expected to grow within guidance; Germany and West below, East and Others above guidance range.