GERMANY: Metro Reports Solid Q2 Growth

The Metro Group continues in its revival, reporting solid growth for its fiscal second quarter, helped in particular by domestic growth.

For the quarter, sales in Germany grew by 1.7% to €5.4bn, although International sales were down 2.5% to €8.2bn, hurt by currency fluctuations.  The results pulled down overall sales by 0.9% to €13.6bn, although like-for-like sales edged up 0.3%.

Meanwhile, the group reported an operating loss of €34m for the quarter, down from the €564m it reported last year. It also saw its pre-tax loss narrow to €98m, from €626m last year.

Sales at the Cash & Carry unit were down 0.3% to €6.5bn, but they grew by 0.5% on a LFL basis; Media-Saturn recorded a 1.9% increase to €5.3bn, with LFL sales up 2.8%; and the Real unit saw sales decline by 1.6% to €1.8bn, with LFL sales up 0.5%.

Metro reiterated its full-year outlook for a slight rise in overall sales and EBIT, excluding special items despite what it describes as a “persistently challenging economic environment”.

NAM Implications:
  • How long before Metro take the inevitable step of spinning off Media-Saturn?
  • …and really see what unencumbered focus could release…
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