New Metro still struggles in the Netherlands and Belgium | RetailDetail

New Metro still struggles in the Netherlands and Belgium

New Metro still struggles in the Netherlands and Belgium
Foto: samritk / Shutterstock.com

German food retail group Metro says it has created a solid foundation for new growth in its first year since it stepped away from its non-food activities. The Benelux are still worrisome however. 

 

Stable turnover, lower profit

Metro’s growth in its first year apart from non-food chains Media Markt and Saturn (now known as Ceconomy) is rather small: the 1.6 % turnover increase to 37.1 billion euro is mainly thanks to positive exchange rate fluctuations. On a like-for-like basis, turnover only grew 0.5 %.

 

Wholesale chain Metro generated the majority of this turnover and als achieved a 3 % turnover increase. Department store chain Real’s turnover continued to drop and it also closed stores. Metro itself also suffered in particular regions, with profitability down in Belgium, Russia and the Netherlands.

 

Excluding the exceptional turnover from the split, profit did reach 583 million euro, up from the 495 million euro from the year before. EBIT remained stable at 1.1 billion euro.

 

Ready for new growth after tumultuous year

Nevertheless, Metro is positive about its past year. The holding group, which now handles every food and supermarket activity from Real to Makro and Metro, has been through a transitional year in its broken fiscal year 2016/2017 and now wants to pick up the growth pace according to chairman Olaf Koch. “It was among the most eventful and strategically important years in the history of METRO. With the stock exchange listing of the new METRO, we created the foundation to deliver even more focus, innovation and growth. This ultimately also improves our operative earning power”, he said.

 

 

Koch forecasts a 1.1 % turnover growth for next year, although profitability also has to improve: he expects EBITDA excluding earnings contributions from real estate transactions to increase 10 %. An expanded service for hospitality customers and more focus on digitization should help achieve that goal.

Questions or comments? Please feel free to contact the editors


Gerelateerde items

Carrefour Belgium launches personal shoppers with 90 minutes delivery

19/07/2018

In the intense struggle for the customers' favour, Carrefour Belgium has presented a new service - featuring personal shoppers, delivery within 90 minutes and an app that can be expanded into a market place.

Cultured meat in stores by 2021?

18/07/2018

Commercialization of laboratory cultured meat is coming closer. Pioneer Mosa Meat has raised 7.5 million euros for the construction of a factory that will bring an affordable product to the market within three years.

Aldi commits to renewable energy

17/07/2018

Aldi Nord has published an ambitious international climate policy: the retailer wants to reduce greenhouse gas emissions by 40% by 2021 and reveals some compelling figures in its second sustainability report.

Discounters' major opportunities for growth in Western Europe

16/07/2018

Despite the multitude of stores in most European markets, discounters plan to open up to ten million square metres of store surface in five years' time. Even in so-called saturated markets they still see a lot of chances for growth, LZ Retailytics says.

Contamination bites huge chunks of Greenyard's value

16/07/2018

Vegetable producer Greenyard is under attack after a listeria contamination in its Hungarian factory. The company says to have taken all necessary measures, but the share price plummets.

Adidas wants to strengthen bond with small retailers

15/07/2018

German sportswear giant Adidas says it wants to strengthen its bond with small-scale retailers after they claimed Adidas is too aggressive in pushing its web shop, especially as they feel the brand is favouring large international chains as well.