German retail giant Metro swings back to profit
German retail and distribution giant Metro said Tuesday it had returned to profit during its 2013/14 business year thanks to a strong fourth quarter.
The company's net profit for the fiscal year ending September 30 reached 127 million euros ($158 million) in a turnaround from a 35 million euro loss the previous year.
Metro, based in the western city of Duesseldorf, cited restructuring and better results from its Media-Saturn electronics stores in particular as factors behind the improvement.
"In order to keep momentum for this business development going, not only will we proceed in 2014/15 resolutely with the transformation of Metro group, but we will also intensify those efforts," chief executive Olaf Koch said in a statement.
Business took a hit from currency losses, particularly in the Russian market where the value of the ruble has tumbled. More than one-quarter of Metro's total full-year earnings before interest and taxes derived from its cash and carry business in Russia.
Metro had set a target of 1.75 billion euros in earnings before interest and taxes for the full fiscal year and fell just short, with EBIT of 1.73 billion euros.
For the financial year 2014/15, it said it expects a slight earnings increase with a marginal rise in overall sales.
© 2014 AFP