Metro (B4B) Q3 2024 earnings summary

Executive summary

• Q3 sales grew 4% portfolio-adjusted in local currency, in line with guidance, with all channels growing, especially FSD.

• Adjusted EBITDA for Q3 was €327 million, roughly flat year-over-year, including a final negative effect from China license fee expiration.

• Free cash flow was €239 million, mainly due to improved net working capital, though down from €384 million in Q3 22/23.

• Net debt stands at €3.3 billion, slightly up year-over-year but down sequentially.

• Management board was strengthened and leadership structure reorganized for greater operational focus.

Financial highlights

• Q3 sales reached around €8 billion, with 4% growth at constant currency and inflation-adjusted growth of 2%.

• Adjusted EBITDA declined by €9 million year-over-year, mainly due to post-transaction effects.

• Earnings per share in Q3 were €0.04, with nine-month EPS at -€0.13, in line with guidance.

• Gross margin in Q3 increased, though EBITDA margin declined from 4.3% to 4.1% due to higher sales.

• Free cash flow was positive at €239 million, but lower than the prior year due to a strong comparison base.

Outlook and guidance

• Full-year 2023/24 guidance confirmed: sales growth of 3–7%, adjusted EBITDA between -€100 million and +€50 million.

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

• 2030 targets reaffirmed: sales >€40bn, EBITDA >€2bn, free cash flow >€0.6bn, with 5–10% CAGR in sales and 5–7% CAGR in EBITDA.

• EPS expected around breakeven for the year; dividend payout unlikely if EPS is zero or negative.

• Slightly negative free cash flow and increase in net debt expected due to investments and lease portfolio extension.