German wholesaler Metro has raised its sales by over a quarter in the last three months, thanks to the upturn in the hospitality sector. However, the quarter ended with a heavy loss, because of the Belgian branch.
Sales rise 27 %
Metro had a strong quarter. Turnover rose – in local currency – by 27.2 % to 7.9 billion euros. The wholesale group “significantly growing across all channels and segments, selling more goods and seeing notable business success in the countries”, CEO Steffen Greubel said in a press statement.
In Croatia, France, Poland and Romania, Metro even had the best quarter in its history. Turkey, however, recorded the strongest sales growth of all countries, mainly because of inflation. In Ukraine, sales fell by 36.9 % due to the war. Western European countries – excluding Germany – recorded a 31.7 % increase in sales, with double-digit growth in nearly all countries.
In Italy, Metro launched its online marketplace last quarter, which is taking an increasing share of sales. Online turnover rose by just under 50 % to 18 million euros, while sales by delivery rose by 64.4 % to 1.8 billion euros. Already 22 % of all sold goods are delivered. However, in-store sales also increased by 18.7 % to 6.1 billion euros.
136 million to get rid of Belgium
Although adjusted EBITDA rose from 310 million euros last year to 441 million euros today, the wholesaler ended the quarter with a loss. Belgium was a major culprit, as the sale of the Belgian branch cost the group 136 million euros. In addition, strong negative currency effects – such as the collapse of the rouble – cost the company a total of 400 million euros. This resulted in a net loss of 290 million euros.
For the remainder of the year, Metro continues to believe that it will keep up with its heightened outlook, despite the “turbulences on the world markets”. “Challenges such as inflation and the availability of energy and commodity are currently on top of our agenda and we are pro-actively managing these issues,” says Greubel.