sCore - Wholesale to the max
The strategy of METRO
We’re serious: we want to become even more successful – together with our professional customers. We’re a wholesaler that knows the route and is aiming high. We are systematically investing in the wholesale up scale. The period up to 2030 we seek to make strong and profitable growth for us and our professional customers.
METRO sCore - Wholesale to the max
Capital Markets Day 2022 - Dr Steffen Greubel, CEO
- At METRO, wholesale customers quickly find what they need. We act efficiently, reliably and professionally.
- Our focused assortments, products and packaging are tailored for HoReCa and traders. Our own brands have been developed for our customers. And with our customers.
- Our employees know their customers, and they know their customers’ business. They advise them at eye level, solve problems and create incentives for higher sales.
- Stores, delivery, the online marketplace – METRO delivers through many channels. The customers decide according to their own needs which ones they want to use. And we make it possible.
- METRO makes the customers fit for competition, and for the future – with digital operational solutions, sustainably produced assortments and product innovations.
- Our stores enable flexibility. We invest in the stores to make them efficient and simple for our customers.
- For us, delivery means growth. Restaurateurs need simple, reliable and flexible services. We plan to triple sales for the distribution business (FSD) by 2030.
- We’re taking advantage of our high-capacity network of stores and distribution areas, and we’re systematically expanding in a multichannel direction.
- Our sales force markets METRO goods and services at the important interface to our customers. Accordingly, we’re planning an expansion of our sales teams.
- Digital sales are efficient sales. They give our customers – and our sales force managers – latitude. Our ambition: 40 % of sales will be digital by 2030.
- E-commerce is growing – and what is true for retail, we also expect for B2B. Through continued investment in METRO MARKETS, we plan to create Europe’s largest online marketplace for food service-related products.
- We are also digitalising our customers’ processes. Through our investments in DISH Digital Solutions, we intend for every second food service customer to also be a DISH customer in the future.
- Our franchise concepts make small traders strong. Shopping at the shop around the corner and saving time by using convenience products are gaining in importance. We are developing the next generation of our franchise concept – a greater commitment, for higher sales.
- Hospitality and retail chains need a professional partner for volume, reach and reliability. We want to grow with our large customers and expand our competence in distribution.
sCore – our goals at a glance
sCore – our goals at a glance
We are investing in our network of stores and depots, in digital solutions, sales, franchise business and food service distribution. This multichannel approach of the sCore strategy is also reflected in the business model.
- Wholesaler sharpening its focus on professional customers and expanding its multichannel model. Key measures planned through 2030:
- Functional reorientation of stores for professional customers with focussed B2B assortments
- Increase in share of own brands to over 35% planned
- Expansion of FSD (Food Service Distribution) business through extended use of store space for delivery, additional depots and strengthened sales force
- International expansion of the online marketplace METRO MARKETS
- Improvement of customer retention through scaling of digital DISH products for the hospitality industry
- Expansion of franchise solutions for Trader customers
- METRO aims to outperform market growth and announces medium- and long-term ambitions through 2030:
- Total sales to grow initially by 5% to 10% CAGR from 2022 to 2025, then accelerating to over €40 billion by 2030
- Growth driven primarily by FSD sales, which are set to more than triple, and expansion of marketplace business to more than €3 billion; digital sales to grow to 40% of total sales
- EBITDA to show initial robust growth of 5% to 7% CAGR from 2022 to 2025, rising long-term to over €2 billion in 2030
- Cash investments to increase to as much as 2.5% of total sales annually until 2025, then gradually reduced to a long-term level of up to 1.5%
- Free cash flow is to cover increased investment requirements to deliver the targeted organic growth in the medium term. Long-term, free cash flow to increase to over €0.6 billion in 2030
- The ratio of net debt to EBITDA is to be lowered gradually to the targeted approximately 2.5x by 2025
- Dividend policy confirmed at 45-55% of EPS