German retailer Metro AG reported fiscal fourth-quarter sales that met analysts’ estimates and reaffirmed its earnings target for the year in its first financial report since selling the Galeria Kaufhof department stores.
Revenue fell 1.1 per cent to €14.2 billion ($16.1 billion) in the three months through September, Düsseldorf-based Metro said Monday in a release of preliminary figures. Analysts expected €14.2 billion, the average of eight estimates compiled by Bloomberg.
The company said it anticipates a good Christmas business in the current quarter, sees a a better than expected net cash inflow of €1.75 billion from selling the department stores and cited better performance of its Media Markt and Saturn electronics outlets compared with last year.
"We managed to make our core business dynamic again," chief executive officer Olaf Koch said. "Following the successful sale of Galeria Kaufhof, we also once again have the financial means to make further acquisitions." The company is scheduled to report full annual results on 15 December.
Metro also reaffirmed its guidance that annual earnings before income and taxes and before special items would exceed last year’s €1.53 billion.
Metro is hunting for more acquisition targets after buying Classic Fine Foods Group, a Singapore-based supplier of gourmet products, for €290 million in August. It also struck a deal with Alibaba to let Chinese consumers buy German coffee, chocolate and butter cookies over the Web.
News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here.
