Thanks to the combination of rising inflation and a strong recovery in the catering industry, Metro is experiencing a better than expected quarter. The foodservice wholesaler is therefore raising its financial outlook.
Strong third quarter
Based on a strong third quarter, Metro expects growth of 17% to 22% for the full financial year 2021-2022. Up to now, the expected growth was 9% to 15%. Operating profit (ebitda) will increase by 150 to 203 million euros. Management concludes this based on the combination of rising inflation and strong momentum in the hospitality industry.
However, the foodservice wholesaler is also cautious: a further escalation of the war in Ukraine and/or further sanctions could have a negative impact on business. On 10 August, the company will publish its third-quarter results. The recent sale of the Belgian operations will not affect the financial results for this financial year, the company adds.
No news on Belgium
On June 15, Metro announced that it had sold its Belgian division to Luxembourg-based real estate company Bronze Properties and a restructuring specialist, GA Europe. In the meantime, it appears that it is mainly German businessman Wolf Waschkuhn who is taking over, with his restructuring company Square One.
Metro is said to have given the buyers a dowry of 150 million euros. The Belgian stores may continue to use the group’s existing brand names and private labels for the time being. We are still waiting for news about more concrete plans from the buyers.
