Analysis of financial results of Metro Ukraine for Y2023

March 14, 2024

In 2023, Metro Ukraine's revenue increased by 27% compared to the previous year, but was still lower than in 2021.

According to the financial statements of the Metro Ukraine company, its revenue in 2023 amounted to UAH 25.5 billion, which is 27% more than in 2022 (UAH 20.2 billion), but still less than in 2021 (UAH 25.9 billion).

The company's EBITDA in 2023 made UAH 826 million, operating profit was UAH 482 million, but at the same time, due to FX loss because of debt to related companies revaluation, in 2023 Metro Ukraine received a net loss in the amount of UAH 381 million.

In 2022, Metro's net loss amounted to UAH 658 million, the main reason for which the same as in Y2023 FX loss due to intercompany debt revaluation (total FX loss from the revaluation amounted to UAH 1.5 billion). Also in 2022, in its reporting, the company reflected a loss from the impairment of goods and fixed assets in the amount of UAH 175 million, most of which is related to the loss of the hypermarket in Mariupol.

Despite the loss, the company's operating cash flow in 2023 was positive (in 2022 it was negative - in the amount of -529 million UAH, so Metro Ukraine attracted additional financing from the parent group in the amount of 10 million euros to close the cash gap).

Metro Ukraine revenue, turnover 2023

Regarding the structure of the company's balance sheet, as of December 31, 2023, Metro Ukraine's equity was negative and amounted to -5.9 billion euros, while the amount of the loan from the related Metro Finance BV was UAH 7.3 billion (in addition, the company has debts to related companies for the supplied goods). So the group's own funds remain the main source of funding for the Metro business in Ukraine.

As of the end of 2023, Metro Ukraine's inventory amounted to about UAH 2 billion (almost unchanged compared to the previous year), cash increased from UAH 930 million to UAH 2.7 billion. The amount of payables to suppliers, after a significant decrease during 2022 - from UAH 3.7 billion to UAH 2.5 billion, as of the end of 2023 has increased again - to UAH 3 billion.

In 2023, the company had very fast inventory turnover - 32 days, while the average payable period made 40-45 days.

As a result of a full-scale Russian invasion in the spring of 2022, the operations of five Metro shopping centers was suspended - two hypermarkets in Kharkiv, as well stores in Mariupol, Chernihiv and Mykolaiv. Later, during 2022-2023, the company resumed the operation of one shopping center in Kharkiv and shopping centers in Chernihiv and Mykolaiv.

As of now Metro owns 22 large hypermarkets and three small-format shopping centers in Ukraine.

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