Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on METRO AG. We currently have 16 research reports from 1 professional analysts.
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Q1 16/17: not too exciting
03 Feb 17
Sales in Q1 16/17 reached €16,986m (-0.6%, -0.4% at CER and +0.1% lfl), EBITDA €1,055m (+0.7%), EBIT before special items €821m (-0.8%), net result before special items €381m (+3.8%) and net profit €200m (-63.7%). Net debt at the end of Q1 was unchanged at €0.1bn. For the full year, the group anticipates a slight rise in sales despite the “persisting challenging economic environment” and a slightly better performance than in FY15/16 at Real.
Not so much news at the group’s CMD, but some extra confidence
16 Dec 16
Metro held its Capital Markets Day at which the two businesses to be separated next year were presented: “Ceconomy”, as the consumer electronics business is to be named (formerly Media-Saturn), and “Metro” now specifically referring to the wholesale and food business.
FY15/16 in line; waiting for the demerger now
14 Dec 16
Metro released FY15/16 results. Sales reached €58.4bn (-1.4%, +0.4% at CER and +0.2% lfl), bang in line with consensus and our numbers. EBIT before special items reached €1,560m (+3.2%), EBIT €1,513m (vs €711m) and net profit €657m. Lastly, net debt at the end of FY15/16 reached €2,301m. The dividend proposed is €1.00 (unchanged).
Reassuring H1 figures
15 Sep 16
H1 sales came in at £8,032m, a slight decrease compared to 2015/16. The operating profit improved by 30.2% yoy, following a more rigorous cost savings plan (administrative expenses were halved). Net profit stood at £110m, i.e. a net margin of 1.37%, almost stable compared to H1 15/16. Morrisons succeeded in improving its FCF (£556m vs. £468m in H1 15) and reduced its net debt (by £477m) following the enhancement in margin, an improvement in working capital control and opting for a light-capital strategy.
Reaching new terms with Ocado
10 Aug 16
Morrisons agrees new terms with Ocado that will enable it to reach customers nationwide. Under the new terms, Morrisons will be released from a profit-sharing agreement (between ¼ and ½) of earnings. Also, it would not share fees for research and development (£4m). The deal states that Morrisons rents 30% of Ocado’s new warehouse. According to management, the new terms would lift the company’s profit by £50-100m per year in the mid-term. Ocado will still be prohibited from serving Tesco, Sainsbury, Asda and the German discounters. Wm Morrison’s share climbed by 1.86% yesterday, boosting its performance over the last week to 6.92%.
Worries about new tax dampened
21 Sep 16
Yesterday, the European Commission announced through a press release that it has opened an in-depth investigation into Poland’s tax on the retail sector. The European Commission has also issued an injunction, requiring Poland to suspend the application of the tax until the Commission has concluded its assessment. It is worth noting that Poland adopted, in July 2016, a new tax to be applied to retail companies operating in Poland. The tax entered into force on 1 September 2016, and no payments are due yet.
Upside Potential Outweighs Downside Risk
29 Mar 17
After Tesco PLC (TSCO.L) announced on 27 January that it proposed to merge with Booker Group, all has gone quiet and Tesco’s share price has dropped back sharply. Despite quoted annual deal synergies of £200m per annum in the third year post completion of the deal, some of Tesco’s major shareholders believe that the deal premium is too rich and that Tesco is buying Booker on ‘peak’ margins. This could well be true. Looking at stand alone Tesco, its valuation now looks attractive at 7.4x FY-18E EV/EBITDA given the improving cash flow profile, so if the deal is blocked entirely, the stock should rally. If the deal is adjusted, the terms are likely to be better for Tesco we believe. Overall the upside potential outweighs downside risk for the share price. We upgrade our recommendation to Buy.