Metro Group (DB: MEO)1Q17 Trading Update: Weak Grocery Segment Weighs on Top Line

Executive Summary

• Metro Group reported net sales of €17.0 billion in 1Q17, down 0.6% from the same period last year, and almost in line with consensus estimates. Comps edged up by 0.1% year over year.
• Metro Cash and Carry posted sales of €8.0 billion, down 0.3% year over year, which the company attributed to sales of its operations in Vietnam and negative foreign-currency effects.
• Sales at Media-Saturn were flat at €6.9 billion, and sales at Real declined by 4.0% to €2.1 billion.