Metro sees sales down in Eastern Europe, including Romania, higher loss on exchange rate, Ukraine political unrest

Sales declined for German retailer Metro in Romania between October 2013 and March 2014, as well in Ukraine, because of the political unrest, the retailer announced. Its sales decreased in Eastern Europe as a whole: they were down by 14.8 percent, to EUR 7.8 billion during this period. In local currency, this decline was noticeably lower at 7.9 percent, Metro has said. „The fall in sales was due to the disposal of Real in Russia, Romania, Poland and Ukraine,” according to the retailer’s report. Metro Group’s profit - EBIT – amounted to EUR 861 million during the six months, down from EUR 987 million in the first six months of the previous financial year. The group however posted a loss of EUR 320 million, higher than the loss of EUR 253 million in the first half of the previous financial year. „This was primarily the result of unfavorable exchange rate developments as well as the loss of valuation effects from stock tender rights in the previous year,” according to the retailer. The second quarter of Metro’s 2013/2014 financial year was also dominated by currency effects and portfolio changes in the region, with sales declining by 20.1 percent, to EUR 3.2 billion. Metro runs 32 Metro Cash & Carry stores in Romania, and four Real stores, after selling most of its Real chain in Romania to Auchan in late 2012. Metro group's full financial report is here. editor@romania-insider.com