German diversified retailer Metro reported significant earnings growth in Q4 2017. The Dusseldorf-based company also confirmed its forecast for the current year.
In terms of operating profit the price competition and pressure on margins in Russia are having a negative impact. However, the data exceeded the expectations of the analysts. The earnings before interest, taxes, depreciation and amortization (EBITDA) rose from 565 million EUR to 608 million EUR in Q4 2017, which is first fiscal quarter for 2017/2018. The analysts’ expectations were for increase to 577 million EUR. The weak business in Russia and currency effects were negatively affected here, partly offset by the removal of the restructuring costs for Real this year, as well as one-off revenues.
The non-taxable earnings increased to 392 million EUR (compared to 372 million EUR an year earlier) and net profit was 232 million EUR against 124 million EUR an year ago. The earnings per share amounted to 0.64 EUR per share compared to 0.34 EUR per share during the same period last year.
An year ago, the concern was deeply confused in its cash registers for the restructuring of its affiliate Real, and now is also paying less taxes. The revenues based on existing stores operating for at least one year grow slightly by 0.2% to 10.1 billion EUR.
The Chief Executive Officer Olaf Koch confirmed the annual forecast. The operating profit (EBITDA) is expected to increase by about 10% compared to last year’s 1.44 billion EUR. The revenues will show a very slight growth of 0.5%.
In the summer, Metro segregated from the supermarkets Real and its supermarket chains from Media Markt and Saturn electronics stores. They now operate under the Ceconomy Holding.