1H17 ended March 31, 2017; Continuing operations consisting of Media-Saturn business only Source: Company reports/Fung Global Retail & Technology

1H17 Continuing Operations Results

Sales from continuing operations (Media-Saturn) were €12,151 million in 1H17, marking flat growth on both a reported and constant currency basis. Comparable store sales expanded by a slight 0.1% year over year. The gross margin decreased by 50 basis points to 19.8% and the SG&A margin increased marginally.The operating margin decreased by 40 bps year over year to 2.4%. Adjusted continuing EPS was €0.33, down by 29.8% year over year.

1H17 Discontinued Operations Results

The Metro Cash & Carry business reported 1H17 revenues of €14,867 million, up 2.3% year over year and up 1.1% on a constant currency basis. Comparable store sales expanded slightly, by 0.4% year over year. The German Real hypermarket business reported declining sales of 5.7% year over year to €3,718 million. Comparable store sales declined 3.4% year over year. The combined adjusted EBIT margin from discontinued operations including both Metro Cash & Carry and Real increased by 50bps to 3.5%.

Outlook

The forecast for Metro Group now exclusively relates to continuing operations. Metro Group expects a slight increase in sales for FY17. Comparable store sales are also expected to increase slightly year over year in FY17. Management expects adjusted EBIT to increase slightly compared to €466 in FY16. The discontinued operations segment including Metro Cash & Carry and Real will be stock-relisted as an independent entity in mid-2017.