Metro AG
Metro AG is a Düsseldorf-based German multinational wholesaler specializing in food and non-food products for professional business customers, including hotels, restaurants, caterers (HoReCa), and independent traders, through membership-only cash-and-carry stores and food service delivery (FSD) channels under brands such as METRO and Makro.[1][2][3]
Formed in 1996 as a holding company via the merger of four major German retailing entities, Metro AG's wholesale origins date to the establishment of Metro Cash & Carry in 1963, evolving into a multichannel operator present in over 30 countries with around 623 stores and delivery services in 21 countries as of recent reports.[4][5]
The company emphasizes digital solutions like the METRO MARKETS platform, Europe's largest B2B online marketplace for HoReCa, and reported sales of approximately €31.3 billion in 2024, underscoring its focus on serving small and medium-sized enterprises amid a strategic shift to pure wholesale operations following divestitures of retail assets.[5][6][7]
Company Overview
Founding and Legal Structure
Metro AG traces its origins to the establishment of Metro SB-Großmärkte in 1964 by German entrepreneur Otto Beisheim in Mülheim an der Ruhr, Germany, as a pioneering cash-and-carry wholesale operation targeting professional customers such as retailers and caterers.[4][8] This model allowed bulk purchases without traditional retail markups, revolutionizing wholesale distribution in post-war Europe by emphasizing self-service selection and efficiency. Beisheim, initially partnered with Wilhelm Schmidt-Ruthenbeck, expanded the concept rapidly, opening additional outlets and laying the foundation for international growth.[4] The modern corporate entity, Metro AG, was formally created on July 18, 1996, through the restructuring and merger of key operations under Metro Holding AG, integrating wholesale activities with other retail segments like department stores and supermarkets before a later focus on wholesale specialization.[9][10] Headquartered in Düsseldorf, Germany, this formation enabled the company to operate as a unified group, with the wholesale division—branded as METRO Cash & Carry—becoming its core business.[5] As a German Aktiengesellschaft (AG), Metro AG operates as a public limited company under the provisions of the German Stock Corporation Act (Aktiengesetz), featuring a dual-board structure comprising a Management Board responsible for day-to-day operations and a Supervisory Board overseeing strategy and compliance.[11] Shares are publicly traded on the Frankfurt Stock Exchange, subjecting the company to stringent disclosure and governance requirements, including those related to shareholder rights and takeover regulations.[12] This legal form supports its multinational operations while maintaining accountability to a diverse shareholder base, which as of 2025 includes a majority stake held by EP Global Commerce GmbH following a controlling acquisition.[13]Core Business Model
Metro AG functions as a business-to-business (B2B) wholesaler, specializing in the supply of food and non-food products to professional customers such as those in the hotel, restaurant, and catering (HoReCa) sector, as well as independent traders and small retailers.[5][14] The company operates on a membership-based model, requiring customers to register as businesses to access its services, which facilitates bulk purchases and tailored assortments designed for resale or operational use rather than direct consumer sales.[15] This approach emphasizes efficiency in procurement, with a focus on high-volume, low-margin transactions that prioritize assortment depth, freshness, and competitive pricing.[16] The core model integrates a multichannel strategy, combining traditional cash-and-carry wholesale stores with food service delivery (FSD) operations and digital platforms to meet diverse customer needs.[17] Physical stores, operating under brands like METRO and MAKRO, serve as central hubs for immediate pick-up and browsing of over 20,000 stock-keeping units per location, including own brands that account for a significant portion of sales to ensure quality control and margin stability.[15] Delivery services extend reach to customers preferring non-store fulfillment, while digital tools, such as the METRO MARKETS B2B online marketplace, enable e-commerce for equipment and specialized HoReCa needs, enhancing accessibility without diluting the wholesale focus.[15][16] Under the sCore strategy implemented since 2021, Metro AG has streamlined operations to reinforce wholesale purity by divesting non-core retail assets and amplifying investments in store networks, depots, and digital infrastructure, aiming to optimize the end-to-end value chain from sourcing to customer delivery.[7] This includes expanding own-brand offerings, which represented key sales drivers in fiscal year 2023/24, and fostering franchise partnerships to scale presence cost-effectively in select markets.[18] Revenue is predominantly derived from product sales across these channels, with a balanced portfolio mitigating risks from sector-specific fluctuations, such as HoReCa demand variability.[3]Market Segments and Revenue Streams
Metro AG's primary market segments consist of the hospitality, restaurant, and catering (HoReCa) sector—encompassing hotels, restaurants, bars, cafés, and canteens—and the trader segment, which includes independent resellers such as small grocery stores, kiosks, street vendors, and gas stations. These B2B-focused segments represent the core of the company's wholesale operations, with sales of food and non-food products tailored to professional customers requiring bulk purchasing.[15] Revenue streams are generated through three main channels: store-based cash-and-carry sales, delivery services, and digital platforms. In fiscal year 2023/24 (ending September 30, 2024), total sales amounted to €31,029 million, reflecting a 1.6% increase from the prior year. Store-based sales, conducted via 624 outlets under the METRO and MAKRO brands across 21 countries, comprised 74% of total sales, emphasizing self-service wholesale for immediate pickup.[19][15] Delivery revenue stems from Food Service Distribution (FSD), operating through 94 depots and specialist units like Classic Fine Foods and R Express, which provide customized logistics and supply chain solutions to HoReCa and trader customers unable to visit stores. Digital revenue, though smaller, includes B2B online marketplace sales via METRO MARKETS (€165 million in 2023/24) and hospitality software solutions from DISH Digital Solutions (€44 million), enabling e-commerce for third-party products and data-driven services.[18][15] Geographically, sales distribution highlights regional variations in segment performance: the West segment (primarily Western Europe, including France and Italy) contributed €12,819 million (41.3%), East €10,571 million (34.1%), Germany €4,933 million (15.9%), Russia €2,438 million (7.9%), and Others (mainly digital and FSD) €268 million (0.9%). This structure underscores Metro AG's reliance on international wholesale expansion, with non-store channels growing to support multichannel strategies amid varying local demand.[18]Ownership and Governance
Major Shareholders and Ownership Changes
As of June 2025, EP Global Commerce GmbH (EPGC), a holding company controlled by Czech investor Daniel Křetínský, holds a majority stake in Metro AG comprising approximately 68% of the shares, following the completion of a tender offer launched on February 5, 2025, to acquire the entire share capital.[13] [20] This stake includes prior holdings that reached 49.99% of voting rights by the end of fiscal year 2023/24.[21] Other significant shareholders include the Schmidt Ruthenbeck family with 14.99% and the Beisheim family with 10%.[22] The founding entities, Meridian Stiftung and Beisheim Group companies, collectively retain 24.99% of voting rights, a position unchanged since the company's origins in 1964.[23] Metro AG's ownership structure has undergone several transformations since its founding. Established in 1963 as a cash-and-carry wholesaler by Otto Beisheim and partners, initial control rested with Beisheim, who built a substantial personal stake through expansion.[4] By the 1990s, Beisheim retired from management in 1994 while retaining influence via family holdings.[4] The 2017 demerger of the retail division (forming Ceconomy AG) refocused Metro on wholesale and adjusted shareholdings, with free float increasing to around 35-47% in subsequent years amid diversified institutional ownership.[24] [25] A pivotal shift occurred with EPGC's entry around 2021, starting at lower stakes and progressively increasing to 45.62% by fiscal 2022/23 through open market purchases and agreements.[26] This culminated in the 2025 tender offer at €7.00 per share, securing majority control and leading to a delisting agreement to privatize the company, reducing public float and ending stock exchange trading obligations.[27] [20] The founding shareholders supported the transaction, preserving their minority positions without dilution.[23] These changes reflect a strategic pivot toward concentrated private ownership to streamline operations amid competitive pressures in wholesale.[13]Executive Leadership and Board Composition
Metro AG employs Germany's standard two-tier corporate governance structure, featuring a Management Board (Vorstand) tasked with executive leadership and operational management, and a Supervisory Board (Aufsichtsrat) responsible for oversight, strategy approval, and appointing Management Board members.[28][29] The Management Board consists of four members as of October 2025. Dr. Steffen Greubel serves as Chairman and Chief Executive Officer, having been appointed on 1 May 2021 for a term extending to 30 April 2029; he oversees METRO's operations in Germany and France, along with corporate functions, drawing from prior roles at Würth-Group and McKinsey. Guillaume Deruyter holds the position of Chief Customer & Merchandise Officer since 1 June 2024 until 31 May 2027, managing sales, merchandising, and supply chain after joining METRO in 2020 from Pro à Pro. Christiane Giesen acts as Chief Operating Officer and Labour Director, appointed 15 September 2022 until 31 May 2029, with her responsibilities expanded on 1 June 2024 to include additional country operations, based on experience at BP Europe SE and Aral AG. Eric Riegger is Chief Financial Officer since 1 February 2024 until 31 January 2027, handling finance and digital initiatives following tenures at ALDI Süd and Lidl.[28]| Member | Role | Appointment Period |
|---|---|---|
| Dr. Steffen Greubel | Chairman and CEO | 1 May 2021 – 30 Apr 2029 |
| Guillaume Deruyter | Chief Customer & Merchandise Officer | 1 Jun 2024 – 31 May 2027 |
| Christiane Giesen | Chief Operating Officer and Labour Director | 15 Sep 2022 – 31 May 2029 |
| Eric Riegger | Chief Financial Officer | 1 Feb 2024 – 31 Jan 2027 |
Corporate Governance Practices
Metro AG operates under Germany's mandatory two-tier board structure, consisting of a Management Board responsible for managing the company's operations and defining strategic objectives, and a Supervisory Board tasked with advising and overseeing the Management Board to ensure responsible corporate governance.[31][32] The Supervisory Board, comprising 16 members as of fiscal year 2023/24 (with equal representation from shareholders and employees per the German Co-Determination Act), holds regular meetings—six in 2023/24, including one extraordinary session—with an average attendance rate of 94% to review business performance, risk management, and strategic initiatives like the sCore strategy.[32] The Supervisory Board maintains four standing committees to enhance oversight efficiency: the Presidential Committee, which addresses Management Board appointments, remuneration, and contracts (convened five times in 2023/24); the Audit Committee, responsible for monitoring accounting processes, internal controls, risk management, and external audits (six meetings in 2023/24, chaired by an independent financial expert); the Nomination Committee, focused on proposing suitable shareholder representatives for election (two meetings in 2023/24); and the Mediation Committee, which resolves potential deadlocks between boards but was not required to meet during the period. Recent composition adjustments include the re-election of Jürgen Steinemann as Chairman for one year on February 7, 2024, the addition of Willem Eelman as Audit Committee Chairman, and the appointment of Paul Loyo as Vice Chairman in October 2024, reflecting ongoing efforts to align expertise with evolving business needs such as digital transformation and sustainability integration.[32] Metro AG's Management and Supervisory Boards jointly issued a Declaration of Conformity in September 2024, affirming compliance with all recommendations of the German Corporate Governance Code (DCGK) as amended in 2022, with the statement permanently available on the company's website.[33][31] This includes adherence to principles of transparency, long-term shareholder value orientation, and sustainable management, though deviations from non-binding suggestions (e.g., on certain remuneration caps) are disclosed where applicable. The company updated its Corporate Governance Statement in November 2024 to detail these practices, emphasizing risk-adequate internal controls and annual efficiency reviews of governance functions.[31] Integral to governance is a group-wide Compliance Management System (CMS) overseen by the Management Board, which enforces the METRO Business Principles through mandatory training, risk-based audits, and a whistleblower hotline for anonymous reporting of violations.[34] Anti-corruption measures prohibit bribery and mandate due diligence for business partners via digital tools, with biannual reporting to boards on compliance key performance indicators (KPIs) and internal audit evaluations confirming CMS effectiveness.[34] Remuneration systems for both boards, revised for fiscal year 2022/23 (Management) and from October 2021 (Supervisory), tie variable components to financial and ESG targets, promoting alignment with shareholder interests and ethical conduct.[31]Global Operations
Geographic Footprint and Store Formats
Metro AG maintains a geographic footprint centered on Europe, with wholesale stores operating in 21 countries as of September 30, 2024, totaling 624 locations dedicated to business-to-business cash-and-carry operations.[15] The company's presence extends beyond Europe into select Asian markets, including Pakistan and India, though the majority of stores are in continental Europe.[5] This distribution reflects Metro's strategy of targeting professional customers such as hotels, restaurants, caterers, and independent traders in regions with high demand for bulk wholesale procurement.[15] Store counts vary significantly by region, with Germany serving as the domestic core and Western Europe providing substantial scale.[15]| Segment | Number of Stores | Key Examples |
|---|---|---|
| Germany | 102 | Germany |
| West | 228 | France (99), Spain (37), Italy, Netherlands |
| Russia | 93 | Russia |
| East | 201 | Poland (29), Turkey (35), Pakistan |
Key Markets and Regional Strategies
Metro AG operates primarily in European markets, segmented into Germany, West (including France, Spain, Italy, the Netherlands, and Portugal), Russia, and East (encompassing Poland, Romania, Ukraine, Czech Republic, Bulgaria, Hungary, Slovakia, and Turkey). In financial year 2023/24, the West segment achieved sales of €12.8 billion, up 2.0% year-over-year, driven by expansions in delivery specialists and strong performances in Spain and Italy, though hampered by adverse weather impacting HoReCa sales in France.[18] The East segment recorded €10.6 billion in sales, a 6.1% increase in local currency, fueled by inflation-driven demand in high-growth markets like Turkey, Romania, and Ukraine.[18] Germany, the company's foundational market with 104 stores, generated €4.9 billion in sales, reflecting 0.7% growth amid ongoing sCore strategy execution focused on operational efficiency and customer segmentation for HoReCa and trader clients.[18] Russia contributed €2.4 billion, with local-currency sales rising 14.2% following recovery from a prior cyberattack, though reported figures declined due to ruble devaluation.[18] Regional strategies prioritize multichannel integration, combining cash-and-carry stores (under METRO and MAKRO brands) with food service distribution (FSD) in 12 countries and digital platforms like METRO MARKETS, active in six Western European nations to enhance direct-to-customer delivery and assortment for small-to-medium enterprises.[5] In Western markets, emphasis lies on digital transformation and franchise models to counter mature competition, while Eastern strategies leverage economic volatility for volume growth via localized assortments and depot expansions.[18] Metro has streamlined its footprint by divesting Asian operations, including India to Reliance Retail in 2023 and China to Wumei Technology, redirecting resources toward European core markets for sustainable profitability under the sCore framework targeting 5-10% CAGR sales growth to over €40 billion by 2030.[37][16]Supply Chain and Logistics
Metro AG's supply chain and logistics operations are integral to its wholesale model, facilitating the procurement, storage, and distribution of food and non-food products to professional customers such as traders, hotels, restaurants, and caterers across 21 countries. The company emphasizes efficient multichannel fulfillment, transforming stores into hybrid centers that support both in-store pickup and out-of-store delivery (OOS), with 523 stores offering OOS services and 94 dedicated depots enabling rapid delivery in key markets.[5] Food Service Distribution (FSD), a core delivery arm, operates in 12 countries through subsidiaries like Aviludo and Caterite, prioritizing perishables logistics to minimize waste and ensure freshness.[5] In Germany, METRO LOGISTICS Germany GmbH, a wholly owned subsidiary established from the company's internal logistics expertise, manages a multi-user warehouse network of seven centers totaling approximately 400,000 square meters at strategic hubs, handling contract logistics, fulfillment, transport, and value-added services for Metro's operations and external clients.[38] This network supports cross-docking and inventory management tailored to wholesale demands, with a focus on food logistics derived from decades of serving Metro's cash-and-carry stores.[39] Globally, supply chain sourcing is coordinated through entities like METRO SOURCING for non-food items and METRO FOOD SOURCING - VTO for fruits and vegetables, aiming to secure quality and cost efficiencies via direct supplier partnerships.[5] Under the sCore strategy implemented since 2021, Metro invests in logistics optimization to enhance product availability and delivery speed, including store modernizations as multichannel fulfillment centers and acquisitions to bolster FSD capabilities, such as Fisk Idag in Sweden and Donier Gastronomie in Finland during fiscal year 2023/24.[7] Sustainability efforts include transparent traceability for high-risk categories like fish and meat, with due diligence processes to address human rights and environmental risks in upstream supply chains.[40] Recent expansions underscore network resilience, including a new logistics center in Dobanovci, Serbia, opened on November 18, 2024, to streamline nationwide distribution, and a consolidated delivery hub in France serving five stores, launched April 8, 2025, for improved efficiency.[41][42]Historical Development
Origins and Early Expansion (1963–1980)
Metro AG traces its origins to the establishment of Metro SB-Großmärkte in 1964 by German entrepreneur Otto Beisheim, who opened the company's first cash-and-carry wholesale store in Mülheim an der Ruhr, Germany.[4] This pioneering self-service model targeted professional customers such as hotels, restaurants, caterers, and independent merchants, allowing them to select goods directly from shelves in a single location, which marked a significant departure from traditional order-based wholesale practices.[8] The concept emphasized broad assortments of food and non-food products at competitive prices, revolutionizing the sector by improving efficiency and accessibility for business buyers.[9] In 1967, Beisheim secured partnerships with the Haniel family (via Franz Haniel & Cie.) and the Schmidt-Ruthenbeck family, each acquiring one-third ownership stakes, which provided essential capital for scaling operations.[4] This infusion enabled rapid domestic growth, with the number of Metro stores in Germany reaching 13 by 1970.[8] The focus remained on expanding cash-and-carry outlets tailored to B2B needs, prioritizing large-format stores that supported high-volume purchases without requiring membership fees initially. International expansion commenced in 1968 through a collaboration with the Dutch firm Steenkolen Handelsvereeniging (SHV), leading to the launch of the first Makro Cash & Carry store in the Netherlands, which adopted a similar self-service wholesale approach.[8] Subsequent entries included Belgium in 1970 under the Makro brand, followed by France, Austria, and Denmark in 1971, and Spain and Italy in 1972.[8] By 1980, Metro had established over 100 stores across Western Europe, solidifying its position as a leading pan-European wholesaler while introducing innovations like electronic inventory management in its German operations that year.[8]Growth and Internationalization (1980–2000)
During the 1980s, Metro Cash & Carry strengthened its domestic operations in Germany through innovations like pioneering electronic inventory management systems, while pursuing strategic acquisitions to diversify its portfolio. In 1980, the company acquired a 24.9% stake in Kaufhof AG, a major German department store chain, in partnership with the Union Bank of Switzerland, which facilitated entry into consumer electronics retail via brands like Media Markt and Saturn. By 1984, Metro operated over 100 stores across Europe, reflecting steady expansion into Western European markets such as Spain and Italy. These moves emphasized efficient wholesale formats tailored to professional customers, amid growing competition in the cash-and-carry sector.[4][8] The 1990s marked accelerated internationalization, driven by the fall of the Iron Curtain and opportunities in emerging markets. Metro entered Turkey and Portugal in 1990, followed by Greece in 1992, where its market entry positioned it in most European Union member states at the time. In 1994, the company pioneered entry into Eastern Europe with stores in Hungary and Poland, capitalizing on post-communist liberalization to serve small traders and businesses. This period also saw domestic portfolio enhancements, including a 1992 majority stake acquisition in Asko Deutsche Kaufhaus AG, adding grocery, furniture, and home-improvement segments like Praktiker.[8][4] A pivotal restructuring occurred in 1996 with the formation of Metro AG through the merger of Metro Cash & Carry, Kaufhof Holding AG, Asko, and Deutsche SB-Kauf AG, creating a unified entity listed on the DAX index on July 25; that year, sales reached DM 55 billion, with profits of DM 717 million and 130,000 employees. International expansion intensified with first stores in China (Shanghai) and Romania, extending the cash-and-carry model to Asia and further into Eastern Europe. In 1997, entry into the Czech Republic followed, alongside integration preparations for Makro stores; sales grew to DM 56.8 billion, though profits dipped to DM 623 million amid integration costs. The landmark 1998 acquisition of 196 Makro Cash & Carry stores across multiple countries for approximately US$2.7 billion significantly boosted scale, complemented by purchases of Allkauf and Kreigbaum hypermarkets; sales surged to DM 91.7 billion, with international operations accounting for 35.2% of turnover and profits at DM 735 million.[4][8] By 1999–2000, further footholds were established in Bulgaria (1999) and Slovakia (2000), while e-commerce initiatives like the acquisition of Primus-Online in June 2000 and the launch of the Payback loyalty program diversified revenue streams. Sales for 1999 stood at DM 85.7 billion with DM 713 million in profits, transitioning to EUR 46.9 billion in 2000 with EUR 754 million in profits, underscoring robust growth despite economic headwinds. This era transformed Metro from a predominantly German wholesaler into a multinational powerhouse, with over 100 international locations by 2000, prioritizing B2B wholesale amid varying regional adaptations.[4][8]Restructuring and Challenges (2000–2020)
In the early 2000s, Metro Group faced pressures from slowing growth in mature markets and the need to refocus amid international expansions, including entries into Russia in 2001 and Pakistan in 2002. The 2008 global financial crisis exacerbated these issues, accelerating a real estate downturn that impacted consumer spending and retail segments, leading to a sales decline to €65.5 billion in 2009 from €67.9 billion in 2008.[43] The company's diversified structure, encompassing wholesale, hypermarkets via Real, and electronics through Media-Saturn, strained resources as retail units underperformed amid competition and economic volatility.[43] By the 2010s, Metro initiated major restructuring to prioritize its core cash-and-carry wholesale business, divesting non-core assets to reduce debt and improve efficiency. In September 2018, Metro announced plans to sell its struggling Real hypermarket chain, which operated 282 stores and employed 34,000 people, citing the unit's persistent losses and misalignment with wholesale focus.[44] The sale to SCP Group was agreed in February 2020, encompassing 276 stores, digital operations, and 80 properties, with completion in June 2020 marking the end of retail divestitures and transforming Metro into a pure wholesaler.[45] [46] A pivotal step occurred in 2016–2017 with the demerger of Metro Group into two entities: Ceconomy AG for consumer electronics (Media-Saturn) and a restructured Metro AG for wholesale. Shareholders approved the plan in February 2017 at a 1:1 ratio, with the demerger effective July 2017, allowing each to pursue independent strategies.[47] [48] This restructuring incurred significant costs, including a €190 million charge in 2016 that contributed to a quarterly loss before interest and tax of €36 million.[49] Despite these challenges, the moves aimed to sharpen focus on B2B customers like hotels and traders, amid ongoing pressures from currency fluctuations in emerging markets and subdued like-for-like sales growth averaging -0.1% to 1.5% annually in the mid-2010s.[50]Recent Transformations and Adaptations (2020–Present)
In 2020, Metro AG completed pivotal divestitures to streamline its operations toward a pure wholesale model. On April 23, 2020, the company sold a majority stake in its Chinese subsidiary to Wumei Technology Group for net cash proceeds exceeding €1.5 billion, retaining a minority interest while exiting majority control in a key Asian market.[51] Subsequently, on June 25, 2020, Metro finalized the sale of its Real hypermarket chain to SCP Group, fully divesting remaining retail assets and eliminating non-core exposures accumulated from prior restructurings.[46] These moves, executed amid the COVID-19 pandemic, reinforced Metro's operational resilience, as wholesale channels proved essential, enabling the company to invest in multichannel enhancements and customer relationship intensification to capitalize on heightened demand for professional supplies.[52] On January 26, 2022, Metro unveiled its sCore growth strategy at the Capital Markets Day, establishing a comprehensive framework for expansion through 2030 with targets including average annual sales growth of 5% to 10%, reaching over €40 billion, and generating more than 80% of revenue from core customer segments like HoReCa operators and independent traders.[53] The strategy's three pillars—sharpening wholesale specialization for professional clients, accelerating multichannel integration (combining physical stores with digital platforms), and optimizing the geographic portfolio—aimed to drive consistent earnings growth in a consolidating sector. Implementation has focused on value proposition improvements, such as tailored assortments and services, to outperform market averages despite inflationary pressures and supply disruptions.[54] Digital transformation has been central to sCore execution, with Metro expanding its METRO MARKETS B2B online platform to over 30 countries, facilitating e-commerce for professional buyers and integrating data analytics for demand forecasting.[16] Strategic partnerships, including a 2020 digital and IT agreement with Wipro renewed in June 2025 for cloud migration, AI-enabled support, and application development, alongside a 2021 collaboration with Google Cloud via METRO.digital, have accelerated technology adoption to enhance supply chain efficiency and customer personalization.[55] By fiscal year 2023/24, these adaptations contributed to sales increases and reaffirmed long-term targets, underscoring Metro's shift toward agile, tech-driven wholesale leadership amid geopolitical and economic volatility.[56]Business Strategy and Innovations
sCore Strategy Implementation
Metro AG launched the sCore growth strategy in January 2022 at its Capital Markets Day, with implementation commencing in fiscal year 2021/22 to drive profitable expansion through 2030 by sharpening its wholesale focus on professional customers such as HoReCa operators and independent traders.[16] The strategy targets sales exceeding €40 billion at a compound annual growth rate (CAGR) of 5-10%, with EBITDA surpassing €2 billion at a 5-7% CAGR, primarily through tripling Food Service Distribution (FSD) sales and achieving over 80% of total sales from core wholesale segments.[16][54] By fiscal year 2023/24, sCore implementation contributed to €31 billion in sales, marking the third consecutive year of growth amid economic headwinds, alongside strengthened market leadership in food wholesale.[30][57] A core pillar of sCore implementation involves reorienting operations exclusively toward wholesale value propositions, including functional store adaptations for B2B assortments, expansion of sales teams by over 700 positions in fiscal year 2023/24, and elevating own-brand sales share to exceed 35% by 2030.[54][16] Metro has pursued targeted acquisitions to bolster FSD capabilities, such as Caterite in the United Kingdom, Donier Gastronomie in Finland, and Fisk Idag in Sweden during fiscal year 2023/24, aiming to triple delivery sales overall.[54] These efforts emphasize tailored solutions for HoReCa and trader segments, with stock availability targeted above 98% by 2030 to enhance competitiveness.[54] Multichannel integration forms another key implementation focus, evolving stores into fulfillment centers while expanding delivery and digital channels to reach 40% of sales digitally by 2030.[16] Progress includes strong delivery business expansion and enhancements to platforms like the M-Shop app and METRO Companion, alongside METRO MARKETS operating in six countries with adjusted sales ambitions of €1.5 billion.[54] Investments supporting these initiatives, including cash capital expenditures up to 2.5% of sales through 2025, have facilitated network optimization for improved productivity and capacity.[16] In February 2025, CEO Dr. Steffen Greubel highlighted three years of sCore execution as yielding sustained growth and a refined wholesale profile, with over 15 million customers served globally by more than 85,000 employees, despite ongoing investments straining short-term free cash flow.[30] The strategy incorporates sustainability through eco-friendly assortments and digital efficiencies, aligning with Metro's prior Dow Jones Sustainability Index recognition, while monitoring progress via country-specific key performance indicators.[16] Outlook for fiscal year 2024/25 projects 3-7% adjusted sales growth, underscoring commitment to sCore amid cultural shifts toward wholesale specialization.[57][54]Digital Transformation and Technology Adoption
Metro AG has pursued digital transformation as a cornerstone of its sCore growth strategy, emphasizing multichannel operations, e-commerce expansion, and process automation to enhance efficiency for its B2B customers in food wholesale. Launched in 2020, the sCore initiative integrates digital tools to streamline procurement, supply chain visibility, and customer interactions, with investments focusing on cloud migration, AI integration, and data analytics to support over 600 stores across 21 countries.[58][16] A key component involves the development of B2B e-commerce platforms under METRO.digital, including the METRO MARKETS online marketplace tailored for HoReCa (hotels, restaurants, catering) sectors. Introduced in Germany in September 2019, METRO MARKETS enables suppliers to reach professional buyers directly, with expansions such as the full rollout in France in September 2023, where it serves as a dedicated platform for local HoReCa procurement. The platform supports real-time inventory, personalized assortments, and seamless integration with in-store purchasing, contributing to a reported increase in online sales penetration. Complementing this, METRO's global e-commerce solution, developed in partnership with freiheit.com, facilitates customized online shopping experiences across markets, translating physical cash-and-carry models into digital formats with features like mobile ordering and delivery tracking.[59][60][6] In supply chain and operations, Metro AG has adopted technologies for automation and traceability, including AI-driven invoice processing via ABBYY solutions, which accelerated wholesale customer payments by up to 90% across its companies. For sustainability-focused initiatives, the company implemented blockchain-based digital traceability in its seafood supply chain starting in 2023, partnering with entities to ensure end-to-end accountability from source to shelf, as demonstrated in pilots promoting verifiable sustainable sourcing. ERP modernization efforts, centered on SAP systems, addressed prior implementation challenges through structured recovery, enabling better integration of procurement, logistics, and financial data as of mid-2025.[61][62] Technology adoption extends to IT infrastructure via renewed partnerships, such as the June 2025 extension with Wipro for cloud services, application development, and AI-enabled support, aiming to optimize data management and operational resilience. METRO Cloud Hub initiatives further accelerate this by fostering cloud-native applications and automation, while tools like Sitecore have improved digital experience scalability, reducing load times and boosting pageviews on customer-facing platforms. These efforts align with broader data-driven retail strategies, incorporating mobile scanning and analytics via partners like Scandit to identify process gaps and enhance in-store digital maturity.[55][63][64][65]Acquisitions, Partnerships, and Expansions
Metro AG has pursued targeted acquisitions to bolster its food service distribution (FSD) segment and enhance wholesale capabilities. In August 2024, the company acquired Caterite Food & Wineservice, a UK-based specialist in food service delivery, to expand its FSD operations and generate synergies with its existing subsidiary Classic Fine Foods UK.[66] This move aligned with Metro's sCore strategy emphasizing growth in high-margin FSD channels. Similarly, in May 2025, Metro acquired GVS Group, a German foodservice provider focused on system gastronomy, to accelerate FSD expansion through superior service levels and customer integration.[67] These acquisitions reflect Metro's shift toward pure-play wholesale, divesting non-core retail assets while prioritizing B2B efficiency. Strategic partnerships have supported Metro's digital and operational resilience. In June 2025, Metro renewed its alliance with Wipro Limited for two additional years, entrusting the IT firm with integrated digital services encompassing cloud infrastructure, data management, application development, and AI-driven support to strengthen IT operations amid market volatility.[55] This extension builds on prior collaborations, enabling scalable technology adoption without internal overhauls. Metro has also emphasized franchise models in its expansion toolkit, fostering localized growth while maintaining central control over supply chains.[16] Expansions center on network densification and digital multichannel integration. As of 2024, Metro operated 623 stores across 21 countries, with investments directed toward depot enhancements and store conversions into multichannel fulfillment centers (MFCs) to support omnichannel delivery.[5] [7] The company is advancing the international rollout of its METRO MARKETS online B2B platform, aiming to capture e-commerce demand from professional customers.[16] In fiscal year 2023/24, these efforts contributed to sustained growth despite economic headwinds, with FSD and digital sales channels driving market share gains.[68]Financial Performance
Historical Financial Trends
Metro AG's financial performance since its formation in 1996 through mergers including Metro Cash & Carry has shown periods of strong revenue expansion tied to geographic and operational growth, interspersed with volatility in profitability due to economic cycles, restructuring charges, and divestitures of non-wholesale segments. In fiscal year 1996, the newly formed group reported net income of DM 717.2 million (equivalent to approximately €367 million). By fiscal 2000, sales had climbed to €46.9 billion, supported by international wholesale expansion, with earnings before taxes rising 10.7% to €754.1 million. Revenue continued to grow amid broader retail diversification, reaching €67.3 billion in fiscal 2009/10, though this encompassed multiple divisions including Real hypermarkets and electronics retail.[69][70][71] The 2010s marked a shift toward wholesale focus, with divestitures like the 2016 sale of Real reducing overall revenue but aiming to streamline operations and improve margins in core cash-and-carry activities. This led to revenue stabilization in the €25–30 billion range post-2016, reflecting a narrower but more specialized portfolio. Profitability remained uneven, influenced by impairment losses on assets, currency fluctuations in emerging markets, and integration costs from acquisitions. For instance, adjusted EBITDA trended lower in challenging years amid competitive pressures in European wholesale.[71]| Fiscal Year (ending Sep 30) | Sales (net, € million) | Net Income (€ million) |
|---|---|---|
| 2020 | 25,632 | 460 |
| 2021 | 24,765 | -56 |
| 2022 | 29,754 | -334 |
| 2023 | 30,551 | 439 |
| 2024 | 31,029 | -120 |
Recent Earnings and Sales Growth (2023–2025)
In fiscal year 2023/24 (October 2023 to September 2024), Metro AG reported net sales of €31,029 million, a 1.6% increase from €30,551 million in fiscal year 2022/23, though currency- and portfolio-adjusted sales growth reached 5.9%, driven by expansions in delivery business and the Eastern Europe segment.[74][75] Adjusted EBITDA fell 9.9% to €1,058 million amid higher costs and transformation expenses, while EBIT dropped sharply 63.6% to €218 million due to restructuring impacts and one-off effects.[74] Entering fiscal year 2024/25, Metro AG demonstrated accelerated sales momentum, with Q1 (October-December 2024) net sales rising 7.1% in local currencies to €8.6 billion, including 15.3% growth in delivery sales and 12.9% in the East segment, though reported growth was 5.6% due to adverse exchange rates in Russia and Turkey.[76] Adjusted EBITDA edged up to €412 million from €407 million, supported by volume gains across channels.[76] For H1 2024/25 (October 2024 to March 2025), sales grew 5.3% overall, with contributions from all major channels including stores (+4-5% locally) and delivery, while adjusted EBITDA dipped to €468 million from €484 million, reflecting ongoing cost pressures partially offset by margin improvements in key markets.[77] In Q3 2024/25 (April-June 2025), sales advanced 7.4% in local currencies (4.8% reported to €8.4 billion), with store-based business up 4.9% locally and delivery continuing strong performance.[78] Adjusted EBITDA held steady at €336 million, indicating stabilized profitability amid volume-driven gains.[78]| Period | Net Sales (€ million) | Reported Growth (%) | Local Currency Growth (%) | Adjusted EBITDA (€ million) |
|---|---|---|---|---|
| FY 2023/24 | 31,029 | 1.6 | 5.9 | 1,058 |
| Q1 FY 2024/25 | 8,600 | 5.6 | 7.1 | 412 |
| H1 FY 2024/25 | N/A | 5.3 | N/A | 468 |
| Q3 FY 2024/25 | 8,400 | 4.8 | 7.4 | 336 |
Profitability Metrics and Investor Outlook
Metro AG's profitability metrics for fiscal year 2023/24 reflected ongoing challenges, with a net profit margin of -0.61% and an operating margin of 0.90%, impacted by restructuring costs and weak performance in certain markets.[79] The adjusted EBITDA margin stood at approximately 3.46%, down from prior years amid efforts to streamline operations under the sCore strategy, though gross profit margins remained stable around 15.9-16.17%.[80][81][82] Return on assets (ROA) was 0.62%, indicating limited efficiency in generating profits from total assets, while return on equity (ROE) registered at -11.59%, underscoring shareholder value erosion due to net losses exceeding €155 million in Q2 2024/25 alone.[79][83] Debt metrics added pressure, with net leverage at 2.9x in fiscal 2024, above the company's 2.5x target, contributing to subdued profitability amid high interest expenses.[84]| Metric | FY 2023/24 Value | Notes |
|---|---|---|
| Net Profit Margin | -0.61% | Trailing twelve months; reflects net losses post-restructuring.[79] |
| EBITDA Margin | 3.46% | Adjusted; declined year-over-year due to cost pressures.[80] |
| ROA | 0.62% | Low asset utilization efficiency.[79] |
| ROE | -11.59% | Negative amid equity dilution and losses.[83] |