Metro slips after acquisition


8 May 2007 — Duesseldorf (GER): Metro Group has posted a Q1 net loss of €9 million ($12.2 million), compared to profit of €7 million last year, attributing the slide to profits being dented by the recent acquisition of Wal-Mart’s German stores.

Earnings before interest and taxes fell 11 percent to €123 million, from €138 million, including a €15 million charge relating to the integration of the Wal-Mart stores.


Q1 sales were up 12 percent to €14.92 billion, compared to €13.31 billion last year. Sales were boosted by the group’s recent acquisition of 19 Geant Markets outlets in Poland and 85 German Wal-Mart stores. Excluding these acquisitions, sales rose 7.8 percent.


CEO Hans-Joachim Koerber said: "We were particularly successful in our growth markets Asia and Eastern Europe, but business also developed positively in the challenging markets of Western Europe and in Germany – although consumer sentiment in our domestic market was marred by the increase in value added tax."


Looking to the full year, Metro said it expects sales growth between eight and nine percent, while EBIT should rise between six and eight percent.