GERMANY: Metro earnings slump

By Katy Askew | 4 March 2013

Metro earnings drop

German retailer Metro Group has reported a slump in earnings, as weakening consumer sentiment in Europe hit the group's 2012 performance.

Metro said that 2012 earnings per share were down 28% to EUR1.89 (US$2.46) for the year. EBIT before special items totalled EUR1.98bn, against EUR2.37bn a year earlier.

In an announcement on Friday (28 February), Metro also revealed that it is cutting its full-year dividend by 26%.

However, the group remained upbeat on its 2012 sales, emphasising revenue for the 12 months was up 1.2%. Metro added it has invested in a restructuring and cost-cutting programme that is designed to improve profitability. The retailer reports its full 2012 results on 20 March.

Show the press release

Management Board resolves 2012 dividend proposal

01/03/2013

Management Board resolves 2012 dividend proposal

Today, METRO AG's Management Board decided to propose a dividend payment for the financial year 2012 of €1.00 per ordinary share (2011: €1.35) and €1.06 per preference share (2011: €1.485). Despite numerous significant macroeconomic challenges, EBIT before special items amounted to €1,976 million. The non-recurring, extraordinary charges from implementing strategic portfolio and efficiency-enhancing measures totalled €585 million. The dividend proposal confirms METRO GROUP's overall solid development in the financial year 2012: 1.2% sales growth and a €694 million improvement in cash flow from operating and investing activities to €1,714 million.

As explained in the Annual Report 2011, the dividend proposal of the Management Board of METRO AG follows the development of the earnings per share before special items, which amounted to €1.89 for the financial year 2012 (2011: €2.63).Over recent years, the payout ratio has, on average, been around 50% of net profit attributable to shareholders of METRO AG before special items.

At the beginning of 2012, a strategy of focus, financial optimisation and transformation was implemented by the Management Board of METRO AG to sustainably safeguard METRO GROUP's future. This led to special items totalling€585 million last year. The expenses for portfolio optimisation measures, e.g. the sale of Makro UK and Real in Eastern Europe as well as the discontinuation ofMedia Markt in China, were the most significant. In addition, comprehensive investments into further efficiency enhancement were made. These measures contribute to the company’s positive development in the medium and long term.

These one-off expenses have led to a decline in EBIT including special items to€1,391 million and to €810 million EBT in the financial year 2012. Due to the fact that deferred taxes on current losses have not been capitalised, the income tax expenses were only slightly lower year-on-year. This led to an elevated GROUP tax rate of 87.5%. EBIT before special items was in line with guidance and amounted to €1,976 million.

Original source: Metro Group

Sectors: Financials, Retail

Companies: Metro Group

View next/previous articles

4 Mar 2013 -

UPDATE: UK: Solway strike will not affect supplies - 2 Sisters

4 Mar 2013 -

UK: 2 Sisters' Solway Foods workers balloted on strike action

Currently reading -

GERMANY: Metro earnings slump

4 Mar 2013 -

US: Publix "interested" in regional retailer Harris Teeter

4 Mar 2013 -

NORWAY: The Saucy Fish Co. launches in Norway

There are currently no comments on this article

Be the first to comment on this article

Related research

Mixed Retailers in Belgium

Despite mixed results within the category, mixed retailers performed dynamically in 2011. Emma Stores opened new outlets and more than ever banked on design with accessible prices. Following a premiumisation strategy, Galeria Inno continued to remod...

Internet Retailing - Belgium

In 2009-2010, internet retailing witnessed an ongoing widening of its offer, but also of demand. Whilst the first purchasers were often men who “went on an adventure in search of new gadgets, new books”, by contrary, “the woman recently inserted the ...

Homeshopping - Belgium

Again, mainstream VAD (Vente A Domicile – Distance Selling) players focused in 2010 on the progressive transition of their activities and consumer base from homeshopping to internet retailing. Indeed, online stores offer more interactivity, more visu...