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Adler shows an overall weak development at METRO

11 Aug '08

5 min read

With special items, METRO Group's EBIT decreased to €-130 million following €437 million in the first half-year 2007 (second quarter 2008: €-282 million following €303 million in the second quarter 2007).

This included €237 million expenses resulting from the streamlining of Real's store base. Of which, €224 million are attributed to Real and €13 million to the segment Other Companies/Consolidation.

In addition, EBIT in this segment was negatively affected by non-cash effective expenses resulting from Adler's revaluation to the amount of €375 million. Of which, €312 million result from the full goodwill impairment and €63 million from other expenses.

EBT amounted to €-361 million following €222 million in the first half-year 2007. EPS from continuing operations was €-0.76 after €0.33 in the first half-year 2007.

Adjusted for the aforementioned special items, as well as the impact of Adler's revaluation on the tax rate, EPS increased by 12.1% to €0.37.

METRO Group's capital expenditure in the first half-year 2008 amounted to €818 million following €694 million in the first half-year 2007. In the first half-year 2008, 37 stores were opened – thereof 20 in the second quarter 2008.

Metro Cash & Carry with double-digit growth in Eastern Europe and Asia/Africa. Sales at Metro Cash & Carry grew by 6.1% to €15.7 billion in the first half-year 2008.

Sales in Germany declined slightly in the first half-year 2008. Whereby, the increase in food sales could not fully compensate the declining non-food business, seen especially in the second quarter.

Sales in Western Europe in the first half-year 2008 increased by 0.6% to €6.0 billion. Like-for-like sales were on prior year's level.

While sales in the United Kingdom and Portugal in particular continued to decline, France and The Netherlands showed again satisfactory growth rates.

Sales in Eastern Europe in the first half-year 2008 rose significantly by 14.4% to €6.0 billion. Like-for-like sales growth amounted to 9.3%. Among others, Poland, Czech Republic, Russia and Ukraine showed above-average growth rates.

Sales in Asia/Africa in the first half-year 2008 increased significantly by 14.6% to €0.9 billion. All Asian countries, except for Japan, showed double-digit like-for-like growth rates in local currency. The international share of sales increased from 81.6% to 82.8%.

EBIT developed slightly better than sales and grew by 6.9% to €410 million. In the first half-year 2008 capital expenditure for international expansion and for the modernisation of the store network amounted to €329 million (first half-year 2007: €256 million). The store network was enlarged by eight stores.

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