Metro Q1 growth driven by 'new' EU states
central and eastern European countries join the Union, one of
Europe's biggest retail groups, Metro, has reported first quarter
growth driven by an excellent performance in the new member states.
The diversified retail group, which operates cash & carries, supermarkets, hypermarkets and non-food outlets, said that first quarter sales had reached €12.87 billion, a 7.3 per cent increase over the same period a year earlier, albeit aided slightly by favourable currency effects.
Even without this bonus, sales were some 6.1 per cent higher, however, helped by a 21.3 per cent gain in eastern Europe. "Our strongest growth region is eastern Europe," Hans-Joachim Körber, CEO of Metro. "In the first quarter, EBITA rose from €13.6 million to €36.8 million, and Metro is now the biggest retailing company in eastern Europe. As a result, we welcome EU enlargement very much."The eastern European figures contrast with those in recession-hit Germany, where Metro's sales were up by a more modest 2.3 per cent to €6.84 billion. Total foreign sales, buoyed by the east European performance, rose by 10.7 per cent to €6.03 billion, or by 13.7 per cent excluding currency effects. Net of currency effects, sales abroad climbed 13.7 percent.
Some 46.9 per cent of Metro's business now comes from outside Germany, up 2 per cent on the previous year, helped by new market entries in countries such as India and Ukraine.
The core cash & carry unit continued to benefit from its low-price focus in its home market, where consumer spending levels remain depressed, lifting sales by 4.8 per cent there and by 7.6 per cent overall to €5.92 billion. Excluding currency effects, cash & carry sales in western Europe improved by 5.4 per cent, while eastern Europe shone once again with a 21.2 per cent improvement. Poland, Romania and Russia were the main performers in this region.
