Metro profits up and expansion likely

The Metro Group, the parent of Macro cash and carry stores and the world’s No.4 retailer, has seen its net profit more than double for the 2010 year, while its sales rose modestly. The Group is set  to continue to look for growth in emerging markets across the world.

For the year, net profit surged to €850m from €383m in 2009, while EBIT rose by a better-than-expected 19% to €2.42bn. Meanwhile, overall sales were up 2.6% to €67.3bn. The group said it benefitted from improved performances at its loss-making units such as Real and Kaufhof.

The group said it plans to open more than 110 new stores this year, mostly in China, India and Russia. It also confirmed plans to launch its Cash & Carry unit in Indonesia in 2012, and said its Media-Saturn unit will launch an internet sales platform for Germany in the second half of 2011.

Looking ahead, Metro said it remained cautious for the year. It forecast EBIT to grow by 10%, with sales expected to rise by 4%, but said this is subject to various conditions and it could not rule out the possibility that market conditions could deteriorate and hurt results.