Metro FY Loss Widens; Sees Positive Net Income And Dividend Payment In 2022/23

Metro AG (MTTWF.PK), a German wholesaler, reported a net loss for financial year 2021/22 that widened from the previous year, reflecting currency-related negative effects and impairments. It expects a positive earnings per share and therefore a return to dividend payments for 2022/23. The company increased mid-term ambitions for the period 2020/21-24/25.

The company said that a dividend distribution for the 2021/22 financial year is not planned for ordinary shares or preference shares.

Looking ahead for fiscal year 2022/23, the company expects annual adjusted EBITDA to decline by 75 million euros-225 million euros compared to financial year 2021/22, primarily because of cost increases related to inflation.

The company expects a total sales growth of 5% to 10% (2021/22: 21.4%) for fiscal year 2022/23, with a measurable decrease in inflation compared to the previous year.

The company increased mid-term ambitions for the period 2020/21-24/25 due to rise in inflation and expects now 5-10% average sales growth (before: 3-5%) and 5-7% average EBITDA growth (before: 3-5%) over fiscal year 2020/21.

The company reported that its net loss for financial year 2021/22 widened to 331 million euros or 0.92 euros per share from last year’s 45 million euros or 0.15 euros per share, reflecting currency-related negative effects in the financial result (mainly non-cash from intra-company relationships), effects from the sale of the Belgian business (transformation costs, partly cash-relevant) and impairments. Without the impairments, the profit or loss for the period would have increased significantly.

Adjusted for currency effects, annual adjusted EBITDA increased by more than 200 million euros year-over-year to 1.39 billion euros, given that negative currency effects from the Turkish currency were overcompensated by positive currency effects from Russia and other countries.

Annual sales grew 20.1% to 29.75 billion euros from 24.77 billion euros in the previous year.

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