Metro Group's profit dwindles nearly 75 % | RetailDetail

Metro Group's profit dwindles nearly 75 %

Metro Group's profit dwindles nearly 75 %

German trade concern Metro has managed a 62 million euro net profit in the first half of its fiscal year 2014/2015, 75 % lower than the 242 million euro it managed in the same period last year.

Turnover slightly lower

The company managed a 32.677 billion euro turnover (- 1.1 %) in the October 2014 - March 2015 period. The drop can mostly be attributed to the Eastern European region, where sales dropped 11.9 % to 6.852 billion euro as the group keeps downsizing its Real network. Exchange rate fluctuations in Russia and Ukraine have also impacted the group's performance.

 

In Germany and Western Europe, sales grew 0.9 % and 1 % respectively to 13.623 and 9.953 billion euro. Asia and Africa were responsible for another 2.248 billion euro of turnover. On a like-for-like basis, Metro's turnover would have grown 2.2 % over the first six months.

 

Media Markt and Saturn have increased their joint turnover 4.8 %, thanks to a 25 % online sales increase in the first six months. Their online sales now represent 0.9 billion euro or 8 % of the group's total turnover. All other brands have seen a drop in sales (in euro): Galeria Kaufhof dropped 1 %, while Metro and Makro dropped 3.1 % together. Real even dropped 9.9 %.

 

Net profit dropped

Financially, the profit from day-to-day activities have dropped from 814 million to 418 million euro. Net profit even dropped 242 million to 62 million euro, thanks to a 450 million euro devaluation of its Real portfolio.

 

For its full fiscal year, the group (with some 2,200 stores in 30 countries) expects to get a slight turnover increase, despite the challenging economic situation.

Questions or comments? Please feel free to contact the editors


Walmart and Microsoft team up to beat Amazon

18/07/2018

Two major American companies join forces to try to beat the omnipresent threat of Amazon: Walmart (Amazon's biggest competitor in retail) and Microsoft (Amazon's main rival in cloud services) have signed a strategic partnership for the next five years.

Sales of PCs grows for the first time in six years

13/07/2018

For the first time in six years computer sales showed growth again: in the second quarter of 2018 they increased by 1.4%. According to research firms Gartner and IDC, the sales increase is mainly due to growth in business markets.

Retailhub Inspiration Tour: the customer journey becomes very different

09/07/2018

Thanks to Retailhub by RetailDetail, Antwerp has one more unique retail hot spot. Professionals can experience the future of retail in the Benelux' only retail inspiration platform, with 1250 sqm of innovative technology and huge trends.

Breakthrough in Karstadt-Kaufhof merger

05/07/2018

Canadian Hudson’s Bay and Austrian Sigma Holding have not reached a preliminary agreement about the merger of their respective department store chains Kaufhof and Karstadt: the Canadian company says it has only signed a letter of intent.

Alibaba CEO and Belgian PM discuss investment in Liège

04/07/2018

Alibaba founder Jack Ma has discussed a possible investment in Liège, Belgium with the country's prime minister Charles Michel. Afterwards no decisive statements were made by either party.

Toys "R" Us closes American stores amidst reboot hopes

02/07/2018

Final curtains for Toys "R" Us in the United States: all the stores have closed and 30,000 employees are laid off. Against all odds, some however still hope for a second life for the troubled chain.