Metro’s preliminary results show 1.2 percent sales rise FY’12

According to preliminary figures, Metro Group increased

sales by 1.2 percent to 66.7 billion euros (88.6 billion dollars) in financial year 2012 (0.8 percent in local currency). Adjusted for the disposals of Makro UK and Saturn France, sales rose by 2.3 percent. In the fourth quarter, sales grew by 0.5 percent to 19.4 billion euros (25.7 billion dollars) (in local currency: -0.5 percent).Excluding Makro UK, sales increased by 1.8 percent. Following a subdued start to the Christmas business, sales momentum increased significantly at the end of the year despite the negative calendar effect. Overall, Christmas trading was satisfactory, especially at Media-Saturn. In financial year 2012 company opened 97 stores in 17 countries, 57 thereof in the fourth quarter of 2012.

“Despite tougher market conditions, especially in Southern Europe, we succeeded in increasing sales in the fourth quarter. Our goal is to continuously become more attractive for our customers and therefore increase our competitiveness. Here, we already made significant progress in 2012, in particular also owing to the extraordinary commitment of our employees in this challenging year,” said Olaf Koch, Chairman of the Management Board of Metro.

“The driving forces behind our customer-orientated business realignment have been the successful expansion of our delivery and multichannel activities, our product range and price positioning improvements as well as the further strengthening of our own brands. Upon this foundation, we shall continue to build,” Koch added.

Koch further said, “Financial year 2012 was marked by rising unemployment in Europe and increased measures toward consolidation among European governments to curb the sovereign debt crisis. The resulting consumer reticence had a negative impact on our business development. Taking into account these factors, the sales development was satisfactory, both in the full year and in Q4. Sales in all regions except Western Europe (excluding Germany) increased. The most impressive development was that of Media-Saturn in Germany: Investments in the attractiveness of the store-based business together with the consequent development of the Internet presence led to the very positive sales momentum in the course of the year.”

Company confirmed its 2012 EBIT before special items forecast of around 2 billion euros (2.6 billion dollars). This figure includes a success-fully concluded real estate transaction in France in Q4 2012. The group continues to expect cash flow to improve considerably. As a result, net debt is expected to decline. In addition, company also decided to discontinue the business operations of Media-Saturn in China and set up the corresponding provisions in the balance sheet. This decision was prompted by the experiences and forecasts deriving from the two-year test phase that expired at the end of December. The way forward will now be determined together with the joint venture partner Foxconn Technology Group, with whom the group jointly operates Media Markt China.