Germany-based retailer Metro Group saw its sales increase by just 0.1 per cent to €31.3bn worldwide during the first half of 2011, according to new figures published this week.
Announcing the results, the group revealed it made an overall net profit of €83m for the period (excluding special items), down from €127m the year before.
Adjusted for special items, its first-half net profit was down year on year from €59m to €54m.
Although it benefited from a later Easter compared with 2010, which helped the company's second-quarter sales rise 0.2 per cent to €15.7bn, the continuing debt crisis in Europe as well as higher prices for food and energy affected consumer sentiment, the company said.
'Despite unfavourable conditions, Metro Group held up well', said CEO Eckhard Cordes. 'Metro Cash & Carry, Real and Galeria Kaufhof succeeded in even increasing their earnings despite the challenging market environment.'
Sales in its home market Germany dropped by 1.7 per cent during the first half of the year 2011 - including a disappointing result for its Media-Saturn consumer electronics store network.
'Media reports about the E.coli incidents and the official warnings led to a clear drop in fruit and vegetable sales at Metro Cash & Carry and Real in May,' the group added.
'This notwithstanding, total sales in Germany during the second quarter adjusted for store disposals and divestments came in slightly above the prior-year level.'
Global growth
Sales in the international business, meanwhile, climbed by 1.3 per cent to €19.3bn during the first half of the year, with international sales accounting for 61.7 per cent of overall takings compared with 61.0 per cent in the year-earlier period.
During the second quarter of trading, Metro Group's sales rose by 0.9 per cent overall, including a 1.4 per cent fall in western Europe to €5.0bn – although this was an improvement on a 1.7 per cent decline overall to €9.8bn in the first half of the year.
Sales in eastern Europe grew by 2.9 per cent to €8.0bn during the first half of 2011, improving by 3.2 per cent to €4.2bn in April-June.
Asia and Africa continue to be the company's fastest growing regions. There, first-half sales rose 14.3 per cent to €1.5bn.
