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German retailer Metro profits up in first-quarter of 2013-2014

RBR Staff Writer Published 11 February 2014

Germany-based department store operator Metro has reported rise in its profits for the first-quarter of 2013-2014 to €514m, as against €129m in first-quarter of the corresponding period a year ago.

The increase was mainly due to the lower tax rate, the company said.

First quarter sales fell by 3% to €18.7bn, compared to €19.4bn, due to currency effects and the already implemented and announced portfolio changes (Real Eastern Europe: Russia, Romania and the Ukraine as well as Media Markt China).

In local currency, Metro Group sales were down by 1.4% on the previous year. Adjusted for currency effects and portfolio changes, Metro Group sales grew by 1.1%.

During the first quarter of financial year 2013/14, the group markedly boosted its EBIT to €1,094m from €985m in the first quarter of 2012/13.

In Germany, sales fell by 1% in the first quarter of 2013/14 and totaled €7.7bn. In Western Europe, sales increased slightly by 0.1% to €5.5bn.

Following the divestment of Real's business operations in Russia, Romania and Ukraine, sales in Eastern Europe totaled €4.6bn, 10.8% below the previous year's level.

The Asia/Africa region continues to be the fastest-growing region at Metro group by far. In local currency terms, sales jumped by 7%.

Commenting on the results, Metro chairman Olaf Koch said company has set a solid foundation for reaching their FY 2013/14 guidance and for successfully continuing Metro group's transformation.

"Already today, we see a clear trend improvement in the like-for-like sales development and our important growth drivers - online and delivery sales - are growing dynamically," Koch added.