Leading German retailer Metro expects split to deliver higher profit
Berlin — Metro on Wednesday forecast stronger profitability in 2017-18 in a sign that the German retailer expects to see some of the benefits soon from its split from consumer electronics group Ceconomy. Metro, which runs wholesale stores in 35 countries as well as Real hypermarkets in Germany, separated from Ceconomy in July, hoping that this new structure would boost performance and allow more acquisitions. "With the stock exchange listing of the new Metro, we created the foundation to deliver even more focus, innovation and growth. This ultimately also improves our operative earning power," CE Olaf Koch said on Wednesday. But Metro’s shares have so far failed to meet expectations for a rerating since the Ceconomy split. They were up 1.9% by 11:21 GMT, while Ceconomy, which reports results next week, also rose 1.9%. Koch said Metro needed to do more to improve the operating profit margin in its cash-and-carry stores in Germany, which was just 0.4% in the 2016-17 fiscal year, inclu...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.