The diversified retail group, which operates cash & carries, supermarkets, hypermarkets and non-food outlets, said that first quarter sales had reached €12.87 billion, a 7.3 per cent increase over the same period a year earlier, albeit aided slightly by favourable currency effects.
Even without this bonus, sales were some 6.1 per cent higher, however, helped by a 21.3 per cent gain in eastern Europe. "Our strongest growth region is eastern Europe," Hans-Joachim Körber, CEO of Metro. "In the first quarter, EBITA rose from €13.6 million to €36.8 million, and Metro is now the biggest retailing company in eastern Europe. As a result, we welcome EU enlargement very much."The eastern European figures contrast with those in recession-hit Germany, where Metro's sales were up by a more modest 2.3 per cent to €6.84 billion. Total foreign sales, buoyed by the east European performance, rose by 10.7 per cent to €6.03 billion, or by 13.7 per cent excluding currency effects. Net of currency effects, sales abroad climbed 13.7 percent.
Some 46.9 per cent of Metro's business now comes from outside Germany, up 2 per cent on the previous year, helped by new market entries in countries such as India and Ukraine.
The core cash & carry unit continued to benefit from its low-price focus in its home market, where consumer spending levels remain depressed, lifting sales by 4.8 per cent there and by 7.6 per cent overall to €5.92 billion. Excluding currency effects, cash & carry sales in western Europe improved by 5.4 per cent, while eastern Europe shone once again with a 21.2 per cent improvement. Poland, Romania and Russia were the main performers in this region.