The German Metro group has announced quarterly results that were better than expected. In the rest of Western Europe the parent company of Media Markt, Saturn, Metro and Makro takes a beating, but the better performances in home country Germany, especially at Media Saturn, makes up for that.
Once again operational profit
“In many countries spending power of our customers is affected by the economic crisis and the coinciding cuts made by governments. Still we have succeeded in raising our profits and keeping our sales stable on a yearly basis”, says a satisfied CEO of Metro AG, Olaf Koch (photo).
“This shows the changes we initiated on a broad front are paying off. This is abundantly clear on our home market Germany, were we saw sales on a comparable basis rise again”, said Koch triumphantly.
Metro announced an operation profit of 14 million euro: a big surprise, because analysts were predicting a loss of 9.1 million euro. Total sales did drop slightly (-0.9%) to 15.5 billion euro, but that still is a decent performance in these times of crisis. In Germany, still worth 40% of total company turnover, sales rose by 1%. In the rest of Western Europe sales declined by 6.6%.
Media Markt and Saturn do well
Especially the electronics branch Media Saturn performs well, with a rise in sales of 2% to 5.1 billion euro. In Germany Media Markt and Saturn even had a growth of 5.1% and in Eastern Europe there was a growth of no less than 8.1%, but in Western Europe however there was a decline of 2.6%. Media-Saturn is especially growing fast online: sales roses by a massive 60.6% and at 281 million euro is worth 5% of total electro sales.
Metro Cash & Carry and Real are faring less well: at Real the drop in sales was limited to -0.9% (to 2.6 billion euro), but Metro Cash & Carry has to take a hit of -2.8% (to 7.1 billion euro). Once again it is Western Europe that takes the biggest hit (-9%), but sales also dropped in Germany (-4.0%). Eastern European activities remained at the same level (-0.3%).