Metro Group witnesses 0.3 percent rise in H1 sales

REPORT_ During H1 2013/14, Metro Group increased its sales by 0.3 percent

after adjustment for currency and portfolio effects. As a result of company disposals, foreign exchange effects and Easter shift, reported sales came in at 33 billion euros (45.9 billion dollars), below the previous year's level. EBIT was impacted by special items and totaled 861 million euros (1,198 million dollars) in H1 2013/14.

“The shift of the Easter business from March to April, negative currency effects and portfolio adjustments had a negative impact on our figures," said Olaf Koch, the Chairman of the Management Board at Metro, adding, “Adjusted for these effects, however, we clearly see that we are taking the right operational approach and that, in particular, Metro Cash & Carry's systematic focus on the customer is increasingly paying off.”

Metro will continue to press ahead with its international expansion: alongside Russia, China and Turkey, India will count among its key growth countries in future. The footprint of the wholesale business Metro Cash & Carry is set to expand considerably in India. By 2020, the company plans to operate 50 Metro Cash & Carry wholesale stores in the country. It currently has 16 wholesale stores in 12 Indian cities.

Sales produced by group's own brands, online retailing and the delivery business continued to grow during H1 2013/14: delivery sales grew by 13.4 percent. In Q2, delivery sales climbed by 9.4 percent. The sales share of own brands rose in H1 2013/14, increasing to 11 percent compared with 10.7 percent in the previous year's six-month period. In H1 2013/14, online sales were up 37 percent on the previous year's six-month period. In Q2 2013/14, online sales rose over 27 percent.

Sales generated by the company in Germany dropped by 2.8 percent in H1 2013/14. In Q2, the shift of the Easter business had a particularly pronounced impact as sales decreased by 5.1 percent. International sales fell by 6.8 percent in H1 2013/14. This was due to strong currency impacts and portfolio effects. The currency translation for sales produced in Non-euro-countries, in particular from Russia and from Turkey, had a negative impact. Adjusted for currency and portfolio effects, sales rose by 2.5 percent. In Q2 2013/14, sales generated by Metro declined by 9.2 percent.

In Western Europe (excluding Germany), sales generated in H1 2013/14 declined slightly by 0.6 percent. Sales produced in Eastern Europe during H1 2013/14 fell by 14.8 percent from the previous year's level. In Asia/Africa, sales produced in H1 2013/14 dipped by 0.7 percent. In local currency terms, though, sales rose by 5.5 percent.

Earnings per share climbed steeply in H1 2013/14 from 0.06 euros (0.08 dollars) to 0.56 euros (0.78 dollars). Adjusted for special items, earnings per share amounted to 1.07 euros (1.49 dollars).

For the financial year 2013/14, Metro Group expects to see a slight rise in overall sales in local currency - even though economic momentum will remain below average and adjusted for implemented and announced portfolio measures. In like-for-like sales, company expects to see a trend improvement following the previous year's level of -1.3 percent and a level of sales that will roughly equal the previous year's level.