Metro unveils strategy through 2030

BY GIULIA PETRONI | UPDATED JAN 26, 2022 05:01 AM EST

Metro AG on Wednesday unveiled its strategic targets through 2030, saying it plans to focus on professional customers and expand its multichannel business model.

The German wholesale company said at its capital markets day that it targets total sales to grow at a compound annual rate of 3% to 5% in the 2022-25 period and reach over 40 billion euros ($45.19 billion) by 2030.

Growth will be mainly driven by sales at its food service distribution business, which are set to more than triple, as well as the expansion of the marketplace business to over EUR3 billion. Digital sales are targeted to grow to 40% of total sales.

Metro said earnings before interest, taxes, depreciation and amortization are expected to grow at a compound annual rate of 3% to 5% in 2022-25, rising to over EUR2 billion in 2030.

Cash investments should increase to as much as 2.5% of total sales annually until 2025 and then gradually be reduced to a long-term level of up to 1.5%, according to the company. Free cash flow is targeted to increase to over EUR600 million in 2030.

The dividend policy is confirmed at between 45% and 55% of earnings per share, Metro said.