BERLIN – The Metro Group returned to profitable growth in the first quarter of 2010.
The German cash & carry, department store, hypermarket and electronics retail group reported net profit of 3 million euros, or $4.2 million in the first quarter, compared to a loss of 75 million euros, or $98.1 million, for the same period a year ago. All dollar figures are converted at average exchange rates for the periods concerned.
For the first time since 2008, Metro posted a significant gain in operating earnings. EBIT more than doubled to 117 million euros, or $162.2 million, from 54 million euros, or $70.6 million, in 2009. This included special items totaling 19 million euros, or $26.3 million, relating to the group’s Shape 2012 efficiency program.
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Group sales rose 2.3 percent to 15.5 billion euros, or $21.5 billion, buoyed by positive currency effects and an earlier Easter weekend this year. Metro said all sales divisions contributed, with a particular upswing at the Galeria Kaufhof department store and Real supermarket divisions.
Though the Galeria Kaufhof department stores posted an operating loss of 19 million euros, or $26.3 million, in the first quarter, this was a significant improvement over the previous year’s loss of 46 million euros, or $60.2 million. The division’s sales climbed 3.4 percent to 819 million euros, or $1.14 billion, with like-for-like sales up 2.9 percent – their highest increase since 2004.
Metro CEO Eckhard Cordes said: “Although the situtation remains challenging, we see a first economic silver lining on the horizon.” For the year ahead, the group forecasts sales to exceed 2009 levels, but fall below Metro’s medium-term target of 6 percent growth. EBIT before special items is expected to “tangibly exceed” 2009 levels, but Metro noted the extent of improvement will depend on macroeconomic developments.