German retailer Metro has reported that sales increased by 1.6%, to €37.1 billion, in its 2017 financial year, with like-for-like sales up by 0.5%.
The company says that these results provide a ‘solid basis’ after a transitional year. In July, Metro Group completed its demerger, dividing the business into two independent public companies.
The group created a wholesale and food specialist under the brand name Metro, which includes Metro Cash & Carry and the Real hypermarket chain, and a consumer-electronics company, Ceconomy.
Now Metro says that it has successfully completed its first financial year as a focused wholesale and food specialist, achieving sustainable sales growth and a stable EBIT development, reaching the previous year's level of €1.1 billion.
Sales were down in the retailer's home market of Germany, however, business operations in the rest of Western Europe, Eastern Europe and Asia all saw growth during this period.
“This was among the most eventful and strategically important years in the history of Metro,” said Olaf Koch, chairman of the management board of Metro AG.
“With the stock-exchange listing of the new Metro, we created the foundation to deliver even more focus, innovation and growth. This, ultimately, also improves our operative earning power.”
Outlook
Looking ahead, Metro says that it expects to see a slight rise in overall sales in the 2018 financial year, despite the persistently challenging economic environment.
It anticipates that its wholesale business will be the main driver of growth, with like-for-like sales surpassing this year’s figures.
EBITDA is expected to increase by around 10%, and the company plans to invest further in digitisation, to open up new opportunities for the future.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
