Metro shares jump after improved Q3 | Progresiv
Metro AG has reported an improved set of results for its fiscal third quarter, helped by a better performance in Russia. The news sent shares in the group up by more than 7.5%. 
For the quarter, sales were down 3.7% to 9 billion euros, while operating profit fell by 38.1% to 133 million euros, and net profit was down 23.3% to 57 million euros. However, the results were significantly affected by currency fluctuations, and Metro said overall it saw improved trends across its business.
At the Wholesale unit, sales were down 2.8% to 7.34 billion euros, but they edged up 0.6% in constant-currency terms, while like-for-like sales were up 1% on the same basis. The results were driven by growth in Asia and Eastern Europe (excl. Russia), in particular double-digit growth in Turkey, Ukraine, and Romania. In Russia, the sales decline “slowdown down significantly”.
Meanwhile, at the Real banner, sales slid by 7.2% to 1.67 billion euros and LFL sales were down 6.6%, but online sales surged up 30% during the quarter.
The results meant sales for the nine-month period were down 1.4% to 27.6 billion euros, although LFL sales edged up 1.2%. Operating profit was down 24% to 547 million euros, but net profit was down just 0.7% to 238 million euros.
The Wholesale unit saw sales edge down 1.3% to 22.1bn, although this was up 1.5% on a constant-currency basis, with LFL sales up 1.2%. The Real banner, meanwhile, saw sales decline by 1.5% to 5.4 billion euros, with LFL sales down 1%.
CEO Olaf Koch noted: “The third quarter confirms the positive trend in the vast majority of our business entities. It also shows that we can correct individual negative developments rapidly and effectively.”
He added: “Russia is and will remain an important market for METRO. The measures taken have started to impact sales and earnings. On this improved basis, we will consistently continue our efforts in Russia.” (www.kamcity.com)
