Metro Revenue Meets Analyst Estimates on Strong German Salesby
Sales in Germany up 1.1 percent during second quarter
Early arrival of Easter compared with 2015 lifted revenue
Metro AG reported second-quarter sales that met estimates as business in its home market of Germany picked up a year before the retailer is due to split its computer and electronics stores from its food wholesale business.
Sales for the quarter ended in March were 13.6 billion euros ($15.5 billion), Dusseldorf-based Metro said in a statement Wednesday. Analysts expected 13.5 billion euros, according to the average estimate compiled by Bloomberg. Earnings before interest, taxes and special items were 11 million euros.
Metro benefited from an earlier Easter this year, as the holiday fell in its second quarter. Chief Executive Officer Olaf Koch plans to split the food and electronics divisions into separate companies by the middle of next year to unlock market value and ease acquisitions.
Metro rose 0.4 percent to 28.20 euros as of 9:02 a.m. in Frankfurt. The shares rallied 14 percent through yesterday since the plan was announced March 30.
In Germany, sales at stores open at least a year increased 1.1 percent compared with 0.6 percent globally.
Sales at Metro’s struggling Real chain, which sells food and hard goods, declined 1.6 percent to 1.8 billion euros.
Sales at the Media Markt and Saturn electronics chains, where the CEO has been updating the assortment and expanding online sales, increased 1.9 percent to 5.3 billion euros.
The company confirmed its forecast for a slight increase in full-year sales and Ebit before special items to be “slightly above” last year’s 1.51 billion euros.