METRO Cash & Carry sales record solid growth in 2016-17
Bangalore, 22nd January 2018 - The new METRO has successfully completed its first financial year as a focused wholesale and food specialist. Following the demerger of the former METRO GROUP, the new METRO achieved a sustainable sales growth and a stable EBIT development in financial year 2016/17. Its wholesale division represented by METRO Cash & Carry operating in 25 countries worldwide, as well as the delivery business, has recorded a sales growth of 3% to reach 29.9 billion EUR in the reporting financial year. Sales rose by 2.3% in local currency.
In 2016-17, Metro Cash and Carry India posted a sale of 798 million EUR, a growth of 16% over the previous year.
Speaking about the key highlights of the last fiscal, Speaking about the key highlights of the last fiscal, Mr. Arvind Mediratta, MD & CEO, Metro Wholesale (India) said, “In line with our commitment of being ‘Champion for Independent Businesses’, we continued our expansion by opening two new stores in Hyderabad and Ahmedabad. Financial year 2016-17 was a strategically important year for us as we launched OPD (order, payment, delivery) last year for traders and Kiranas to facilitate online order placement and door-step delivery. We are building a distinctive value-proposition for the HoReCa (Hotels, Restaurants and Caterers) segment by leveraging our global expertise and are strengthening this category with innovations supported by constant learnings. The success of the kiranas and small traders is eventually our success as we are helping them modernize their operations, automate inventory management and billing, to take their business to the next level. India is a key growth market for us and we are focused on achieving profitable sustainable growth. We are committed towards increasing our presence and supporting independent businesses across regions.”
METRO Cash and Carry India currently has 24 Distribution Centers (stores); six stores in Bangalore, four in Hyderabad, two each in Mumbai and Delhi, and one each in Kolkata, Jaipur, Jalandhar, Zirakpur, Amritsar, Vijayawada, Ahmedabad, Surat, Indore and Lucknow.
International operations of METRO Cash & Carry
In 2016/17, METRO Cash & Carry opened 13 new stores around the world and operates 759 wholesale stores in 25 countries with about 108,000 employees. Throughout the financial year, METRO Cash & Carry has strengthened its consistent focus on the needs and success of the professional customers. With the like-for-like sales up by 0.9% in 2016/17, the company has now maintained the consecutive quarterly like-for-like sales growth for the past 4 years. Moreover, all three business model clusters, Horeca, Trader and Multi-specialist, have posted sales increase in 2016/17.
The delivery business has developed particularly well and expanded its sales by more than 25% compared to the previous year to more than 4.6 billion EUR, accounting for 15.6% of overall sales. The EBIT before special items for METRO Cash & Carry amounted to 1,114 million EUR, an increase of 66 million EUR from the previous year.
Its holding company METRO AG posts reported sales increase by 1.6% to 37.1 billion EUR for 2016/17 (2015/16: 36.5 billion EUR). The EBIT before special items has reached the previous year’s level at 1,106 million EUR (2015/16: 1,106 million EUR). “Financial year 2016/17 was a transition year. It was among the most eventful and strategically important years in the history of METRO. With the stock exchange listing of the new METRO, we created the foundation to deliver even more focus, innovation and growth. This ultimately also improves our operative earning power,” Olaf Koch, Chairman of the Management Board of METRO AG, explained. “Our declared goal is to make our customers more successful and help them make their everyday work easier. We believe that digitisation offers huge opportunities, especially in the hospitality sector. The vast majority of restaurateurs has not yet caught on to using digital solutions. We want to change this and are now launching our digital solutions and services internationally.”
About METRO Cash & Carry
METRO Cash & Carry operates in 25 countries over 750 wholesale markets with about 108,000 employees worldwide. In financial year 2016/17 it generated sales of about €30 billion. METRO Cash & Carry is the wholesale division of METRO, a leading international specialist in wholesale and food retail. The company METRO operates in 35 countries and employs more than 150,000 people worldwide. In financial year 2016/17, METRO generated sales of around €37 billion. The company provides custom solutions to meet the regional and international needs of its wholesale and retail customers.
METRO Cash & Carry entered the Indian market in 2003. The company currently operates twenty-four wholesale distribution centers including six in Bangalore, four in Hyderabad, two each in Mumbai and Delhi, and one each in Kolkata, Jaipur, Jalandhar, Zirakpur, Amritsar, Vijayawada, Ahmedabad, Surat, Indore and Lucknow.