German retailer Metro has announced its intention to increase efforts to improve its financial state as forecasts remain negative for consumer spending in Europe.
'Besides measures to enhance sales and efficiency, Metro Group will further intensify its efforts to improve the cash flow and net working capital in the short financial year,' Metro said in a statement on 20 March.
This announcement comes after a mixed report on 2012 for the retailer, in which sales marginally rose by 1.2 per cent to €66.7bn but profits slid by 26.7 per cent from €979m in 2011 to €717m. Earnings before interest and taxation were also down for the same period from €2.4bn to €1.98bn.
Metro's financial reports will soon be impacted by planned alterations to its reporting period for its financial years, as the company intends to start a new 2013/14 fiscal year on 1 October. This means its first quarter reports will from then on include the core Christmas trading period, in which it makes the majority of its profits.
