Metro Group has said it will reveal further details of its plans for the future of its Real hypermarket chain in November.
The retailer has been undertaking a restructuring of its Real division and ongoing speculation has suggested Metro is considering a sale of the business in Central and Eastern Europe.
Koch said the retailer is currently “assessing the overall opportunity” Real offers.
“We want to come back after Q3 with our numbers on what we think is achievable on Real,” Koch said. “To me now, there is no question that we can’t get to where we were before but it will require some significant changes. This whole discussion is not concluded and we will come back in November when we talk about Q3 with what we are saying.”
He added: “What I am absolutely convinced of is that the operational improvement potential in Germany is significant. It’s an EUR8bn turnover business, operating on a quite attractive base of ranges … the operating improvement is very feasible. The capex for growth is something we need to assess.
The retailer reported today (31 July) that in the first six months of the year, Real narrowed its EBIT loss by 63.2% to EUR4m (US$4.9m), while EBITDA improved 6.5% to reach EUR88m. Sales, however, declined 1.9% to EUR2.66bn.
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Koch told analysts today (31 July) the progress of its Real division in the first-half was driven by the international arm, but there was also evidence of its restructuring initiatives in Germany contributing to a “stable” earnings share.