Metro Pleased With Q3 Growth
Published on Nov 4 2010 11:28 AM in Private Label
Metro Group has announced an increase in its year-end forecast from €2.2 billion to €2.3 billion. Sales in all regions and sales divisions improved, growing by 4.5% in the third quarter to €16.3 billion. EBIT before special items rose by 26.9% to €445 million in the third quarter, following on from a 21.4% rise (to €915 million) in the preceding 9 months.
From January to September this year an increase of 3.1% (to €47.5 billion) was also recorded. It's all part of a 'new growth course', which includes a new corporate structure that is closely aligned to the market's requirements, as well as a plan to reduce costs and enhance productivity. 78% of the 'Shape 2012' cost saving measures have already been implemented.
The company says the increase is due to the recovery in Eastern European markets, and effective measures taken to increase earnings at Metro Cash & Carry. "Our assessment is confirmed that Eastern Europe is making a comeback as a growth driver. Our strong position in this region is already paying off again", says Eckhard Cordes, CEO of the Group.
We are experiencing a significant pickup of business in all regions”, he added. “Against the backdrop of the good economic development and our progress made with Shape 2012 we expect to generate earnings of €2.3 billion this year." The Metro Group employs owns 2,100 outlets in 34 countries across Europe, Asia, and Africa. In addition to the Metro Cash & Carry chain, the Group also operates Real Hypermakets, and the Media Markt and Saturn electronic retailing chains. (4 Nov)© 2010 - ESM: European Supermarket Magazine