Metro increases sales significantly – but earns less
The wholesale group Metro posted a significant increase in sales in the second quarter in view of the high inflation and growth in the business with deliveries to hotels and restaurants. In Russia, however, the group lost feathers. In addition, operating profit fell. The Düsseldorf company confirmed their forecast for the year.
Metro increased sales by 10.4 percent to 6.9 billion euros in the second quarter of the 2022/23 financial year, the Düsseldorf-based group announced on Thursday. However, the adjusted operating result (Ebitda) shrank to 111 (previous year: 157) million euros, also due to inflation-driven higher costs. The bottom line after minorities was a reduced loss to 107 (minus 284).
“With sales growth of more than ten percent (…) we are still fully on course for growth,” said Metro CEO Steffen Greubel. He reiterated his forecast for the year. In 2022/23, sales should increase by five to ten percent, and earnings per share should be positive again, Metro had promised. Adjusted operating income (Ebitda) will shrink by 75 million to 225 million euros due to “inflation-related cost increases”.
Greubel drives Metro’s focus on wholesale. To this end, he is expanding the business with the delivery of restaurants and hotels and dovetailing the traditional branch business more closely with the online activities of the Düsseldorf group. In addition, Greubel is also cleaning up in the metro realm – the group’s withdrawal from India was finally sealed on Thursday morning. Metro had also turned its back on Belgium. However, Metro is still represented in Russia. The Group also operates stores in the Ukraine. Sales in Russia shrank by more than 14 percent in local currency, and operating income also fell