2023-08-10 19:42:00
Wholesale Metro
Metro increased its profits in the third quarter thanks to the sale of its business in India.
(Photo: dpa)
Düsseldorf The wholesale group Metro significantly increased profits in the third quarter thanks to the sale of its business in India. Adjusted for the sale and for currency effects, sales also increased, as can be seen from the quarterly balance sheet published on Thursday after the market close.
Metro had announced the sale of its Indian business at the end of 2022, and the 31 stores there were taken over by the local Reliance group. Driven by the transaction, profit climbed to EUR 174 million in the third quarter of the 2022/23 financial year, after a loss of EUR 290 million a year ago.
The transaction also left its mark on sales. Currency- and portfolio-adjusted revenues increased by 5.9 percent, while reported sales fell by 3.4 percent to 7.6 billion euros. In Russia, sales have also fallen, Metro said. The adjusted operating result (Ebitda) shrank to 332 (previous year: 441) million euros.
“We were able to continue on our growth course in the third quarter of 2023, despite a challenging market environment and a strong prior-year quarter,” 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. However, the Ebitda will shrink by 75 million to 225 million euros due to “inflation-related cost increases”.
More: Metro extends CEO Steffen Greubel’s contract until 2029
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