GERMANY: Metro Group sees sales decline in first nine months of year | Progresiv
Metro Group has posted sales of 45 billion euros for the first nine months of the year, a -1.2% decline on the same period last year, according to accounts just filed. 
The German retail and wholesaling group’s domestic business posted sales roughly in line with last year (-0.3%), however its International (-1.8%) and Eastern Europe (-9.9%) both saw declines. Its Western Europe business was marginally up (+0.7%).
In Asia/Africa, however, the group posted a strong performance, with sales up 18.1% to 3.2 billion euros.
In terms of Q3, its Metro Cash & Carry operation posted a sales decrease of -1.3% in the third quarter of the year, while its Real hypermarket operation saw sales decline -8.2% due to the sale of its Real Eastern Europe business. In Germany, Real declined by -3.7%. The period saw the group sell its Galeria Kaufhof business to Hudson’s Bay, a process that is still awaiting competition approval. It is expected to close in September 2015.
In a statement, Metro Group said, “For financial year 2014/15, Metro Group expects to see a slight rise in overall sales of continuing operations, despite the persistently challenging economic environment. In like-for-like sales, the group foresees a slight increase that will follow the 0.1% gain in the previous year.”
Meanwhile, according to Bloomberg, Metro has agreed to buy Classic Fine Foods Group, a Singapore-based supplier of gourmet products, for as much as 328 million dollars to expand its wholesale business.
Private-equity company EQT will sell the business for an enterprise value of 290 million dollars and an additional payment of as much as 38 million dollars depending on its performance. Classic Fine Foods distributes high-end items to hotels and restaurants in 25 cities, mostly in Asia. (www.esmmagazine.com)
