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Wholesaler Metro Sees Sales Up 5.9% In Third Quarter

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Wholesaler Metro Sees Sales Up 5.9% In Third Quarter

 

 

Wholesale operator Metro AG has recorded a 5.9% rise in sales that’s been adjusted for currency and portfolio changes, during the third quarter of its fiscal year. In terms of local currency, sales experienced a 2.5% increase for the quarter.

The company stated that this quarter was marked by ongoing inflation, escalating costs, and a reduction in out-of-home consumption in numerous countries due to weather-related conditions.

Adjusted EBITDA for the period reached €332 million, a decrease from the €441 million achieved in the same period the previous year.

This decline is primarily attributed to the expiration of post-transaction effects, notably from Real, and the decline in license revenues from the partnership with Wumei, as highlighted by the company. In the initial nine months of the year, the company reported a 4.1% increase in sales, amounting to €22.65 billion.

Regional Performance:

– In the domestic German market, sales increased by 1.9% during the quarter, even though the hospitality and restaurant business (HoReCa) was somewhat restrained in April and May, according to Metro.
– The West segment, fueled by France and Spain, witnessed a 1.6% growth in sales.

– In the East segment, sales rose by 4.2% in local currency. However, due to adverse exchange rates, particularly in Turkey, reported sales experienced an 8.6% drop.

– The Others segment, encompassing Markets business, almost doubled its sales from €31 million in the third quarter of the previous year to €60 million in the current year.

Dr. Steffen Greubel, CEO, noted the company’s ability to maintain growth despite a challenging market environment and a robust previous year.

He mentioned that Metro is expanding its delivery and digital operations and making solid progress in transforming its wholesale outlets.

This includes refining the product assortment, expanding the volume-based pricing strategy “buy more, pay less,” and enhancing delivery services from stores.

Greubel emphasized the company’s aim to evolve its stores into efficient warehouse and logistics platforms to optimize interactions between store-based and delivery business, as well as between stores and distribution centers.

This approach is aimed at achieving Metro’s ambitious goals in the delivery business.

 

 

Source

GSN

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