Kaufhof’s parent company suffers from Russian downturn

Another company which is struggling with a Russia-induced headache is Metro, one of the largest retailers in the world and the parent company of the Kaufhof and Sportarena stores in Germany and Belgium. It did not have a good first quarter (ending Sept. 30th) with operating profits (Ebit) slipping by 4.5 percent to slightly more than €1 billion. Net profits were €404 million compared with €451 million in the previous year. Turnover was down by 2.2 percent to €18.3 billion. Apparently the winter quarter is the most important, ensuring two thirds of the profits and one third of the annual income. Metro has forecast an increase in turnover for the full year – but this will be on a constant currencies basis. The Russian ruble is a major challenge here because the German retail firm was a one of the first to move into the country and is suffering substantially because of the economic turmoil.

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