GERMANY: Metro Group posts promising Q2 financial results | Progresiv

Metro Group has reported modest revenue growth of 0.3%, with a loss of 40 million euros in Q2 2014/15. However, Media-Saturn and Metro Group's online retail and delivery businesses continued to gain momentum.

Metro Group’s sales adjusted for currency effects and portfolio changes grew by 0.3% to 14.4 billion euros in the second quarter (1 January to 31 March 2015). Like-for-like sales increased by 2.5%, the strongest gain in seven years. In Germany, revenue grew by 1.8% to 5.9 billion euros, boosted by strong development at Media-Saturn. In Western Europe (excluding Germany) sales rose by 0.9% to 4.4 billion euros. Sales fell by 11.3% in Eastern Europe to 2.8 billion euros, while sales in local currency increased by 2.7%.

Metro Cash & Carry recorded its seventh consecutive quarter of like-for-like sales growth at 1.1%. Due to exchange rate factors (primarily against the Russian rouble), however, sales in euros decreased by 2.5% to 6.7 billion euros. By contrast, sales in local currency increased by 0.3%. In Russia the sales line recorded double-digit like-for-like growth. Sales from the delivery business continued its upward trend in Q2 2014/15, rising by 10.2% to 0.7 billion euros. Delivery sales now account for 9.3% of Metro Cash & Carry sales.

Real’s sales decreased by 0.7% to 1.78 billion euros. Like-for-like sales increased by 1.1%, helped by the earlier Easter business. Deflationary developments, particularly in the ultra-fresh produce area, as well as a late start to the gardening season prevented an even better development. Sales of Real Online developed favourably. Online sales doubled to 10 million euros. (www.retailanalysis.igd.com)