Metro starts the fiscal year with a surge in sales and profit declines

The retail giant Metro celebrates robust sales growth – yet profit lags. While the Christmas season provided the SDax-listed company with excellent revenues, operational earnings fell short of the previous year's figures. A cyberattack had struck the group at that time, but despite the current declines in profit, the company's management led by CEO Steffen Greubel is confident in achieving the annual targets. With a currency-adjusted sales target of three to seven percent growth in sight and an operating result that could decrease by up to 100 million euros or increase by up to 50 million euros, Metro looks ahead to an ambitious financial year. In the previous year, the company achieved a result of 1.17 billion euros. However, after the first quarter, currency effects, especially with the ruble and the Turkish lira, present a mixed picture of the profit situation: Approximately 60 million euros less are on the books than at the same period of the previous year. Nevertheless, Metro's management does not expect a fundamental recovery of the weakening currencies but remains steadfast in their goals. Greubel also reveals uncertainties regarding the impact of the VAT adjustment in the German hospitality industry. Potential closures of restaurants could affect the business. A return to the 19 percent VAT on meals in restaurants after a temporary reduction to seven percent during the pandemic could pose challenges to the industry. The disclosed quarterly figures reveal despite increased turnover, a decrease in the operating result from 465 million euros to 404 million euros, partly explained by the loss of licensing income and by restructurings. The comparative period in the previous year was also marked by a massive hacker attack and associated costs that negatively impacted the operating profit. A significant decline in profit for the reporting quarter also illustrates the result volatility. Here, a property transaction, as well as non-cash-effective currency movements, played a role. For the future, Metro plans optimistically. By 2030, sales and operating profit should increase significantly. After two disappointing years, the company also maintains its dividend promise and wants to reward shareholders with 55 cents per share.