The German retailer – Metro predicts an increase in sales and revenue for the 2015/16 financial year, despite the difficult economic conditions.
The fourth-largest retailer in Europe said on Tuesday that it expects a small increase in overall sales and revenue before interest and taxes (EBIT) deduction, excluding one-time items for the fiscal year, which starts in October. The Company presumes that the main line of business, the format of "Cash & Carry" and sale of consumer electronics, will be the most successful.
The growth will take place despite the "continuing economic difficulties", while the priority for the company remains the cost control and revision of business models.
EBIT index, excluding one-time items, for the fourth quarter of the fiscal year rose 8 % to 435 million euro, beating the consensus forecast of 379 million.
Metro, which for several years carried out restructuration and sold assets, including Kaufhof chain of stores, reduced its net debt by 2.2 billion euro, to 2.5 billion euro, which allows the company to invest in business development.
"We will continue to restructure and modernize the many shops of our networks, to take advantage of promising acquisitions, and will also re-set goals to increase," - said in a statement the head of Metro, Olaf Koch.
As of Germany's stock market, it closed trading on Tuesday with growth, influenced by telecommunications, transport and logistics and utilities sectors.
At the close of the Frankfurt Stock Exchange, DAX 30 rose 3.07%, MDAX rose 2.62%, and TecDAX index increased by 2.73%.
On the Frankfurt Stock Exchange, the number of advancing securities (533) exceeded the number closed in red (161), and the rates of 30 stocks remained virtually unchanged.
Shares of STRATEC Biomedical AG (DE: SBSG) rose to a historic high, up 6.48%, or 3.480 p., and finished trading at around 57.200.
The Volatility Index – DAX Volatility, which is based on indicators of options trading on the DAX 30, fell 7.89% to reach 24.40.
Meanwhile EUR/USD fell 0.69% to 1.0917 and EUR/GBP fell 0.13%, reaching 0.7250.
USD Index rose 0.53% to 98.26.