German Metro Group has managed a 1.2 % increase of its net profit in the first quarter of its new financial year to 445 million euro, despite a 2.2 % turnover drop to 18.3 billion euro.
Strong Eastern European drop
Its turnover drop was mainly because of a huge Eastern European drop (- 12.4 %), caused by negative exchange rate fluctuations as its local turnover remained pretty much level. German turnover also remained pretty much level at 7.7 billion euro.
Western European sales grew 1.1 % compared to the year before, to 5.6 billion euro. The biggest hike was in Asia/Africa, up 10.5 % (2.8 % prior to exchange rate fluctuations) to 961 million euro.
Media-Saturn does well
Store chain Real, with its Eastern European stores, got pummeled the most, although its like-for-like turnover grew 0.9 %. Galeria Kaufhof experienced a rougher patch: its like-for-like turnover dropped 1.4 % and its total turnover dropped 1 % to 993 million euro.
Metro Cash & Carry had a 1.4 % like-for-like turnover growth, but its total turnover dropped 3.6 % to 8.2 billion euro. It would have had a 1.1 % increase, had it not been for the exchange rate fluctuations, but some negative Eastern European exchange rates impacted the chain tremendously. The group also announced the Greek Metro Cash & Carry division will be sold to retailer Sklaventitis.
Finally, Media-Saturn had a 4.1 % turnover increase, up to 6.9 billion euro and even experienced a 3.8 % like-for-like turnover increase. It managed growth in all markets and a particularly large jump in Eastern Europe.