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27. March 2022.Metro Cash and Carry has published its annual accounts for 2021*, highlighting a rebound in sales with a y-o-y growth of 11,4%. However, this was still around 6% below the pre-pandemic level. Gross profit rose to a historic record with HRK 295m (gross margin 17,9%), yet almost fully offset by the increase in OPEX, as labour costs picked up following the recovery of the tourist season and the phasing out of the furlough schemes. Adjusted EBITDA stood at HRK 36m, with a margin of 2,2%. Although the performance in 2021 improved, the company continued to record a negative EBIT.
* Metro’s fiscal year spans from October to September.
The chart below shows the company’s cash flow generation over the last three years, and we can see that the company’s cash position improved by HRK 157m, with key cash increase contributors being the working capital and the merger of Metro nekretnine, while the largest cash outflow relates to a reduction of debt towards the Group.
The results clearly depict a positive trajectory, however, it seems that the company needs much bigger scale to post positive results. The company’s strategic direction remains unclear given the growth limitations of the domestic market and its investment and financial policies over the past years, which do not seem to be aligned with the overall Group’s strategy.
In our full rating report, we cover:
- Overview of implications of the Russia-Ukraine war on the Group’s activities
- Full analysis of the cash flow development over the last three years
- Assessment of the company’s investment and financial policies in light of the Group’s strategy
- Scenario analysis of potential strategic directions of the Croatian subsidiary.
The rating report is available upon request. Please contact us on mario@creditanalyst.eu for more details.
Company profile
Metro Cash and Carry is one of the leading food and beverages distribtors in Croatia with sales of HRK 1,65bn and adjusted EBITDA of HRK 36m in 2021. Metro Cash and Carry is an operating subsidiary of the German-based Metro AG Group.
Disclaimer: CreditAnalyst.eu Corporate Credit Rating is not a credit rating defined according to the regulation applicable to external credit rating agencies. As CreditAnalyst.eu is not a regulated credit rating agency, it provides exclusively private credit ratings.
