GERMANY: Metro forecasts FY profit jump

By Dean Best | 12 December 2013

Metro forecasting higher sales and profits

Metro forecasting higher sales and profits

Germany retail giant Metro Group has said it expects to report higher underlying profits in its new financial year, a forecast that sent its shares rising this morning (12 December).

Reporting results for a shorter, nine-month financial year, which ran until the end of September, Metro booked EBIT before special items of EUR2bn.

Looking to its new fiscal year, Metro said the EU2bn figure was boosted by EUR300m from real estate sales. Once these proceeds are stripped from the result, the Real hypermarket operator said it expects its EBIT before special items in 2013/14 to "markedly exceed" EUR1.7bn.

Metro also expects to see "a slight rise in overall sales" in its new financial year. The retailer closed its short fiscal period with sales of EUR47.4bn, down 2.2% on the previous year.

Adjusted for changes to its store network, including the sale of Real stores in Russia, Romania and Ukraine, as well as for foreign exchange, sales were up 0.9% at EUR45bn.

Metro posted a net profit of EUR16m, down from the EUR165m booked for the nine months to September 2012. Excluding one-off items in both periods, Metro ran up a loss of EUR71m in the nine months to this September, compared to a loss of EUR14m in the corresponding period.

"All sales lines have further driven and consistently implemented their strategies during the short financial year – always with a focus on our primary objective of creating value added for the customer. And we are seeing success: in many countries, we have further extended our market share," CEO Olaf Koch said.

Shares in Metro were up 1.59% at EUR34.74 11:40 CET.

Click here for the full release from Metro.

Expert analysis

Grocery Retailers in Germany

The 2012 current value growth was the same as the review period CAGR, at 1%. After years of considerable growth (for a very mature and saturated channel), the current success is measured against a considerably higher base. From 2007, sales increased by almost €10.5 billion by 2012. This report offers insight into key trends and developments driving the industry.

Sectors: Financials, Retail

Companies: Metro Group

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