Metro in Germany predicts equal profit

Just like other European giants (Carrefour and Tesco), the Metro Group also continues to battle poor results and the top managers are resigning. The worlds third largest detail trader expects the profits of the current fiscal year to remain equal, even if the departure of Joel Saveuse, head of the hypermarket company, is confirmed.

Metro reported a decrease of 1.8% to 2.37 billion Euro for 2011 and said that investors will have to wait until 2013 for there to be any increase in profit. The turnover last year decreased by 0.8% to 66.7 billion Euro and although Metro said the turnover should increase in 2012, they also warned about the risk element of this prediction due to various market factors.

Metro said that the results were influenced in various ways by the currency effects, costs related to the restructuring programme Shape 2012 and low customer demand.

The group also suffered from an internal blow after the confirmation of the departure of Saveuse, who was one of the contenders for the position of CEO, along with Koch. This confirmation came after the departure of Eckhard Cordes. Saveuse is praised for the revival of the Real supermarket chain and it was expected that he would stay until at least the end of April 2013. His departure will probably pressure the Real-unity again, which has only just escaped years of decreases.

After his departure Koch will take full responsibility for Real and will take over the existing board of commissioners from Saveuse. Didier Fleury, CEO of Real International, will continue the Real Group Committee, whilst Roland Neuwald will keep control of Real Germany.