Makro Cash & Carry’s sales plunged 16.4% last year - making it the worst-performing cash & carry company owned by Metro Group.
Metro Group’s annual report for the 12 months to December 2008, published this week, revealed Makro recorded sales of €1.1bn (£1.04bn) in 2008, compared with €1.35bn in 2007.
As a result of the poor performance, Makro has now been overtaken in sales by Metro Cash & Carry’s operations in the Netherlands, Belgium and the Czech Republic.
In 2007, Makro was listed as Metro Group’s eighth largest cash & carry company, but is now ranked 11th, just ahead of Metro Cash & Carry’s operations in China which reported sales of €1.05bn in 2008.
However, a spokeswoman claimed sales had actually only fallen 2.7% last year. “The sales figures quoted for 2008 are heavily influenced by the severe currency fluctuations of last year when the pound declined against the euro,” she said. “Despite the difficult trading conditions, we slowed our sales decline to -2.7% - an improvement on our -10.9% sales figure in 2007. We have started 2009 with robust sales growth and expect to build on this by driving ahead with our business transformation programme.”
Makro’s performance contrasted starkly with the overall fortunes of Metro Cash & Carry, which reported 4.6% sales growth to €33.1bn and pre-tax profits up 6.8% to €1.3bn.
Sales in Western Europe were down 0.8% during the year, but rose 10.8% in Eastern Europe, boosted by 19.9% sales growth in Russia and 24.3% sales growth in Ukraine.
Metro Group’s annual report for the 12 months to December 2008, published this week, revealed Makro recorded sales of €1.1bn (£1.04bn) in 2008, compared with €1.35bn in 2007.
As a result of the poor performance, Makro has now been overtaken in sales by Metro Cash & Carry’s operations in the Netherlands, Belgium and the Czech Republic.
In 2007, Makro was listed as Metro Group’s eighth largest cash & carry company, but is now ranked 11th, just ahead of Metro Cash & Carry’s operations in China which reported sales of €1.05bn in 2008.
However, a spokeswoman claimed sales had actually only fallen 2.7% last year. “The sales figures quoted for 2008 are heavily influenced by the severe currency fluctuations of last year when the pound declined against the euro,” she said. “Despite the difficult trading conditions, we slowed our sales decline to -2.7% - an improvement on our -10.9% sales figure in 2007. We have started 2009 with robust sales growth and expect to build on this by driving ahead with our business transformation programme.”
Makro’s performance contrasted starkly with the overall fortunes of Metro Cash & Carry, which reported 4.6% sales growth to €33.1bn and pre-tax profits up 6.8% to €1.3bn.
Sales in Western Europe were down 0.8% during the year, but rose 10.8% in Eastern Europe, boosted by 19.9% sales growth in Russia and 24.3% sales growth in Ukraine.
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