German retail group Metro has announced a sheer drop in profits for both the third quarter and the first nine months of the year, while sales increased.
Nine month sales to the end of September saw a 1.5 per cent increase to €47,380 million, while the third quarter provided a rise of 0.6 per cent. Taking into account the disposal of Makro UK, third quarter sales saw a 2 per cent increase.
Earnings before interest, tax (EBIT) and special items dropped 34 per cent to €704 million during the first nine months of the year, with net profit attributable to the company's shareholders down 47.7 per cent to €154 million. Net profit for the third quarter was €125 million, displaying a 44.9 per cent decrease, while EBIT in the period slacked 35.1 per cent to €398 million.
The third quarter saw sales fall 2 per cent in the retailer's domestic market, to €5,859, while the region reported 0.5 per cent growth in the nine months. The loss in the most recent quarter was attributed to the loss of one trading day in September and a drop in non-food sales.
International sales increase by 2.2 per cent overall in the nine months, reaching €29.5 billion. This includes a 2.9 per cent fall off in Western Europe sales while showcasing growth in Eastern Europe of 3.8 per cent, and Asia / Africa of 28.7 per cent. The latter region saw a 32.2 per cent increase in the third quarter to €0.9 billion. The third quarter saw the group's international business contribute 63.1 per cent of sales, an increase of 0.9 per cent.
The group's Metro Cash & Carry banner saw growth of 0.8 per cent while its Real hypermarket division saw a sales decrease of 1.5 per cent.
Own brand sales saw a 10 per cent hike, totalling €5.5 billion while online retailing provided sales of €0.5 billion.
The group said it expects to report sales growth for the full year while acknowleding the impact of the economic crisis on consumer confidence and sales, adding "So far, the retail sector generated only minor sales growth over the course of the year; in real terms, it even recorded a considerable loss." (30 Oct)
© 2012 - ESM: European Supermarket Magazine
