Metro: gives rather cautious outlook for new financial year
(CercleFinance.com) - Germany's Metro said it expects operating profit to fall in FY 2018/2019, due to an expansion of its digitalisation activities and its current transformation in Russia.
For 2018/2019, the retailer expects sales to increase by between 1% and 3% at constant currencies.
However, EBITDA - excluding earnings contributions from real estate transactions - is expected to be 2%-6% below its level last year, the group said.
Given the persistently challenging economic environment in Russia, Metro said that it has initiated measures for its Russian business, prompting the group to expect a measurable improvement in growth.
As a reminder, reduced expectations for the Russian business already prompted an adjustment in the group's full-year guidance last April.
For financial year 2017/18 ended September, Metro said like-for-like sales and sales in local currency increased by 0.7%, while EBITDA - excluding real estate transactions, adjusted for currency affects - increased by 1.2%.
Metro shares, which have fallen by 24% this year, are currently down 9.5% at 12.1 euros, underperforming the STOXX Europe 600 Retail index, which is just keeping its head above water, up 0.1%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
For 2018/2019, the retailer expects sales to increase by between 1% and 3% at constant currencies.
However, EBITDA - excluding earnings contributions from real estate transactions - is expected to be 2%-6% below its level last year, the group said.
Given the persistently challenging economic environment in Russia, Metro said that it has initiated measures for its Russian business, prompting the group to expect a measurable improvement in growth.
As a reminder, reduced expectations for the Russian business already prompted an adjustment in the group's full-year guidance last April.
For financial year 2017/18 ended September, Metro said like-for-like sales and sales in local currency increased by 0.7%, while EBITDA - excluding real estate transactions, adjusted for currency affects - increased by 1.2%.
Metro shares, which have fallen by 24% this year, are currently down 9.5% at 12.1 euros, underperforming the STOXX Europe 600 Retail index, which is just keeping its head above water, up 0.1%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.