Mixed Performance For Metro Across Key Markets In First Quarter
Wholesale giant Metro has posted a 1.0% increase in like-for-like sales in the first quarter of its financial year, however there was a mixed performance across many of its key markets.
Metro's Germany business posted a 0.3% like-for-like decline in the period, which was offset by a 0.5% like-for-like increase in Western Europe, and a 5.0% increase in Eastern Europe.
Metro's Russian business, meanwhile, continues to weigh on group performance, reporting a 5.3% like-for-like sales decline for the quarter.
Asia was up 3.2% on a like-for-like basis, the company added.
Reported sales were up 2.2% across the group, to €7.5 billion, supported by positive currency effects, while EBTIDA (excluding earnings contributions from real estate transactions) stood at €526 million, down from €530 million a year earlier.
“In the first quarter of 2019/20 Metro reached a sales and EBITDA development within our expectations," commented Metro chief executive Olaf Koch.
"We increased our reported sales by 2.2%. Eastern Europe and Asia remain sales drivers for METRO and our customer target groups HoReCa und Trader are also continuing to develop very positively."
The group said that like-for-like sales at its discontinued operations, including the hypermarket business Real, were up 0.6% in the quarter.
Earlier this week, Metro announced it had reached a commercial agreement with a consortium comprised of The SCP Group and x+bricks, over the sale of its hypermarket operation.
Looking ahead to the remainder of the financial year, Koch added, "Based on a strong year-to- date like-for-like sales growth well within the guidance range, we confirm the outlook for the financial year 2019/20."
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.