retail giant Metro Group says that it aims to significantly improve profits next year by launching a campaign to update its image globally.Today, it reported a net loss for its short financial year of nine months and cancelled its dividend.
According to Reuters, investors were left shocked in March when it cut its dividend for the first time in over 14 years. It moved its financial year to start on October 1 to avoid reporting requirements interfering with the key Christmas sales period.
The fourth biggest retailer in the world by revenues, which runs cash and carries, supermarkets, department stores as well as an electronics chain, is currently undergoing a strategy of slimming own its portfolio and cutting costs across the organization in order to try revive its fortunes.
Metro reported earnings before interest and tax (EBIT), before special items, of €728 million for the shortened 2013 business year to September. It had hoped to “slightly exceed” the €706 million of the prior year.
But it reported a net loss of €71 million, falling short of average analyst forecasts for a net profit of €29 million, and said it would not pay out a dividend.
"All sales lines have further driven and consistently implemented their strategies during the short financial year – always with a focus on our primary objective of creating value added for the customer. And we are seeing success: in many countries, we have further extended our market share," CEO Olaf Koch said in a press release.
