Metro Group, the world’s third-largest retailer, has decided to increase its capex investment this year after posting a profit for the first half of 2010 – against a loss in the same period in 2009.
The Germany-based retail giant today (2 August) posted a net profit of EUR58m (US$75.87m) for the first half of 2010, compared to an EUR8m loss for the same period of 2009.
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Metro said it would increase its 2010 capex budget by EUR200m on the back of a “solid” first half.
“The increase of the capital expenditure budget is a sign of our confidence: we are focusing more on growth and expansion again – the period of caution is over,” said CEO Eckhard Cordes.
The Metro boss said its efficiency and value-enhancement programme, Shape 2012, contributed to earnings in the first half.
“Shape 2012 is increasingly becoming a key driver of our success. Our goal is to come back to the growth rates recorded before the crisis as quickly as possible. Here, we are on the right track with our latest measures”, said Cordes.
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By GlobalDataThe retailer posted a 2.4% sales increase for the first half to reach EUR31.2bn, although the growth was supported by currency effects. In local currency, sales grew 0.6%.
In the second quarter, sales grew 2.4% to reach EUR15.7bn. However, second-quarter net profit was down 16.4% to EUR56m, which Metro attributed mainly to restructuring charges and higher interest payments.
