Metro AG has announced that its overall group sales increased through the opening quarter of 2012, although its net result slipped from a profit of over €100m last year to a loss against a 'persistently difficult economic environment'.
Earnings before interest and taxation (EBIT) came in at a loss of €9m, down from the profit of €142m, the result of extensive price investments, higher expansion costs and expenses to improve customer value.
However, group sales climbed 2.2 per cent from €15.3bn to €15.6bn, with positive results in Germany (up 1.6 per cent year-on-year), Eastern Europe (+3.5 per cent) and Asia/Africa (+21.3 per cent), although Western European sales dropped by 1.2 per cent.
'During the past few months we have invested massively into better prices and additional customer services. In many areas, our measures to improve like-for-like sales are already beginning to show the desired effects', said Olaf Koch, chairman of the management board of METRO AG. 'We expect that, based on the sales growth, our full year earnings will come in roughly at the prior year level'.
In its outlook report for the rest of the year, Metro noted that the persistently difficult economic situation and slowing price increases would have a negative impact on sales in 2012.
'We nonetheless expect EBIT before special items in 2012 to roughly match the previous year's result (EBIT 2011 before special items: €2.37bn),' the group stated. 'It should be noted, though, that a forecast issued at this time includes an element of risk in light of theproblems described above and the uncertain economic situation.'
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