CECONOMY AG Development auf Group Sales | ||||
EURm | Q3 2015/16 | Q3 2016/17 | 9M 2015/16 | 9M 2016/17 |
Sales | 4,689 | 4,739 | 16,838 | 16,891 |
% Sales year-on-year change | n/a | 1.1% | n/a | 0.3% |
Online sales (% of total sales) | 9.3% | 10.6% | 8.8% | 10.9% |
Services & Solutions sales (% of total sales) | 6.4% | 6.5% | 5.7% | 5.8% |
Note: All figures from continuing operations only; n/a: not available
Sales increased in the third quarter compared with the same period of the previous year by 1.1% to €4.74 billion (previous year: €4.69 billion). This was notably an outcome of strong growth in online sales (by 33% at MediaMarktSaturn and 16% across the Group to €504 million or 10.6% of total sales). The pick-up rate remained high at 41%. This development confirms the sustained positive customer response to the close integration of online platforms with digitally enhanced stores.Development of Group earnings | ||||
before special items 1 | before special items 1 | |||
EURm | Q3 2015/16 | Q3 2016/17 | 9M 2015/16 | 9M 2016/17 |
Gross profit | 916 | 959 | 3,376 | 3,371 |
Gross margin | 19.5% | 20.2% | 20.0% | 20.0% |
EBITDA 2 | -26 | -4 | 431 | 402 |
EBITDA margin 3 (%) | -1.8% | -1.3% | 1.5% | 1.3% |
EBIT | -83 | -61 | 259 | 228 |
EBIT margin (%) | -1.8% | -1.3% | 1.5% | 1.3% |
Net working capital | -123 | -150 | -266 | -66 |
Note: All figures from continuing operations only
1 All figures before special items except for sales and gross profit
2 For further information on this alternative performance indicator, see the METRO GROUP 2015/16 Annual Report, pages 54-55.
3 Ratio of EBIT/EBITDA to total sales
EBITDA before special items was €-4 million, compared with €-26 million in the previous year (an improvement of €22 million). EBIT before special items likewise increased, from €-83 million in the previous year to €-61 million. Strong online sales and a 0.7 percentage point rise in the gross margin also enabled CECONOMY to improve profitability in the third quarter. This was additionally helped by tight cost control and focused marketing spend. Over the nine- month period, CECONOMY generated sales of €16.89 billion (previous year: €16.84 billion) and an EBITDA of €402 million (previous year: €431 million). Net working capital outflow in the first nine months was €200 million lower."Multichannel is increasingly proving the model of the future and we are very well positioned in this area. This confirms our place as Europe's largest and leading consumer electronics platform. We are also focusing on online and service. Our goals are profitable growth and operational excellence," said Pieter Haas, CEO of CECONOMY AG. "The acquisition of the stake in Fnac Darty additionally underlines our ambition to actively participate in the European market consolidation."
On 26 July 2017, CECONOMY signed an agreement to acquire from Artémis approximately 24.33% of the outstanding shares in Fnac Darty as of 30 June 2017. The transaction was closed on 24 August 2017. CECONOMY thus also gained exposure to the attractive French Market.
Clear focus on online sales and services, customer retention and selective expansionAlongside the online business, Services & Solutions also performed positively. Third-quarter sales, at €306 million, were 2% higher than in the previous year (€299 million), accounting for 6.5% of total sales at MediaMarktSaturn. A key driver here is the roll-out of "smart bars" for service and repairs at some 565 stores.
In customer relationship management, MediaMarkt Club Germany likewise continued its strong growth, with 2.8 million members at the end of June 2017. MediaMarkt Club's total membership is over 13 million. The Saturn Card rolled out across Germany in late May had already attracted some 200,000 additional members by the end of June.
Continuing the company's selective expansion policy in the third quarter, a total of seven new stores opened in Belgium, Spain, Turkey and Greece. The average store size was reduced by 2.3% relative to September 2016 as a result of rightsizing and the opening of smaller store formats.
CECONOMY also grows internationallySales in Germany increased by 1.3% to €2.25 billion. The main sales drivers here were white goods and mobile sales. These were supplemented by stronger sales in the TV receivers business due to the switch from analogue to digital cable television.
Development of Group sales by segment | ||||
€ million | Q3 2015/16 | Q3 2016/17 | 9M 2015/16 | 9M 2016/17 |
Sales | 4,689 | 4,739 | 16,838 | 16,891 |
% Sales year-on-year change | n/a | 1.1% | n/a | 0.3% |
DACH | 2,635 | 2,690 | 9,591 | 9,694 |
Western and Southern Europe | 1,426 | 1,445 | 5,068 | 5,075 |
Eastern Europe | 470 | 491 | 1,649 | 1,709 |
Other 1 | 158 | 114 | 531 | 412 |
Note: All figures from continuing operations only; n/a: not available
1 Including discontinued country operations; for EBITDA/EBIT, "other" comprises the headquarters of CECONOMY AG and discontinued country operations
Notably due to the good performance in Germany, there was an increase in the DACH region both in terms of sales (by 2.1% to €2.69 billion, versus €2.64 billion in the previous year) and in EBITDA (€26 million, versus €2 million in the previous year).
Sales performance in the Western and Southern Europe region was slightly positive (up 1.4% to €1.45 billion; year-on-year: €1.43 billion). EBITDA in the region was €6 million down on the previous year, at €-9 million. In Spain, marked gains in sales and earnings were driven by expansion of the services business, effective marketing campaigns and efficient cost management. Business in Italy and Switzerland suffered as a result of decreasing store traffic. In Italy, where competition remains intense, the lower sales were also reflected in earnings.
CECONOMY - Metro AG published this content on 31 August 2017 and is solely responsible for the information contained herein.
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